<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934.
For the quarterly period ended AUGUST 2, 1997
OR
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934.
For the transition period from _____________________to________________________
Commission file number 000-21250
THE GYMBOREE CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 94-2615258
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
700 AIRPORT BOULEVARD, BURLINGAME, CALIFORNIA 94010-1912
(Address of principal executive offices) (Zip code)
(650) 579-0600
Registrant's telephone number, including area code
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes [X] No [ ]
Number of shares of common stock outstanding at September 2, 1997: 24,599,817
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
Number
------
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Income..................................... 3
Consolidated Balance Sheets........................................... 4
Consolidated Statements of Cash Flows................................. 5
Notes to Consolidated Financial Statements............................ 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations................................... 8
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K..................................... 11
SIGNATURES.............................................................................. 12
</TABLE>
2
<PAGE> 3
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
THE GYMBOREE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AND STORE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
13 WEEKS ENDED 26 WEEKS ENDED
-------------- --------------
AUGUST 2, AUGUST 4, AUGUST 2, AUGUST 4,
1997 1996 1997 1996
======== ======== ======== ========
<S> <C> <C> <C> <C>
Net Sales $ 71,684 $ 57,898 $156,924 $127,001
Cost of goods sold, including
buying and occupancy expenses (41,232) (32,750) (87,526) (68,197)
-------- -------- -------- --------
Gross Profit 30,452 25,148 69,398 58,804
Selling, general and administrative expenses (24,011) (19,188) (50,316) (40,003)
Play program income (loss) 103 (11) 102 117
-------- -------- -------- --------
Operating income 6,544 5,949 19,184 18,918
Interest income 722 962 1,732 1,852
-------- -------- -------- --------
Income before income taxes 7,266 6,911 20,916 20,770
Income taxes (2,688) (2,626) (7,739) (7,892)
-------- -------- -------- --------
Net income $ 4,578 $ 4,285 $ 13,177 $ 12,878
======== ======== ======== ========
Net income per share:
Primary $ 0.19 $ 0.17 $ 0.53 $ 0.50
Fully diluted 0.19 0.17 0.53 0.50
Weighted average shares outstanding:
Primary 24,554 25,715 25,025 25,586
Fully diluted 24,621 25,716 25,023 25,594
Number of stores at end of period 401 326 401 326
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
3
<PAGE> 4
THE GYMBOREE CORPORATION
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS AUGUST 2, FEBRUARY 2, AUGUST 4,
1997 1997 1996
======== ======== ========
<S> <C> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 4,776 $ 8,027 $ 5,940
Investments 46,011 82,360 72,941
Accounts receivable 4,988 4,336 4,825
Merchandise inventories 56,840 48,979 45,065
Prepaid expenses and other 1,599 1,893 3,741
-------- -------- --------
Total Current Assets 114,214 145,595 132,512
-------- -------- --------
PROPERTY AND EQUIPMENT
Land and Buildings 810 0 0
Leasehold improvements 56,515 44,231 38,046
Furniture, fixtures and equipment 57,119 45,820 32,351
-------- -------- --------
114,444 90,051 70,397
Less accumulated depreciation and amortization (24,391) (19,465) (15,532)
-------- -------- --------
90,053 70,586 54,865
OTHER ASSETS 1,296 728 226
-------- -------- --------
TOTAL ASSETS $205,563 $216,909 $187,603
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 18,604 $ 21,949 $ 24,455
Accrued liabilities 10,973 11,825 9,571
Income taxes payable 6,239 6,631 0
-------- -------- --------
Total current liabilities 35,816 40,405 34,026
-------- -------- --------
DEFERRED RENT AND OTHER 17,379 14,571 12,715
-------- -------- --------
STOCKHOLDERS' EQUITY:
Common stock, including excess paid-in capital
($.001 par value: 100,000,000 shares authorized
24,595,553, 25,324,060 and 25,242,894 shares
outstanding at August 2, 1997, February 2, 1997,
and August 4, 1996, respectively) 39,928 62,694 60,929
Restricted stock deferred compensation (337) (753) (946)
Unrealized change in value of investmments 136 219 17
Cumulative translation adjustment (307) 1 0
Retained earnings 112,948 99,772 80,861
-------- -------- --------
Total stockholders' equity 152,368 161,933 140,862
-------- -------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $205,563 $216,909 $187,603
======== ======== ========
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
4
<PAGE> 5
THE GYMBOREE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
( IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
26 WEEKS ENDED
---------------------
AUGUST 2, AUGUST 4,
1997 1996
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $13,177 $12,878
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 5,925 3,943
Loss on disposal of property and equipment 958 425
Provision for deferred income taxes 584 400
Tax benefit from exercise of stock options 1,440 808
Other 109 193
Change in assets and liabilities:
Accounts receivable (651) (1,974)
Merchandise inventories (7,862) (7,413)
Prepaid expenses and other assets (496) (1,918)
Accounts payable (3,346) 14,798
Accrued liabilities (1,214) (1,165)
Income taxes payable (391) (6,244)
Deferred rent and other 2,808 3,277
------- -------
Net cash provided by operating activities 11,041 18,008
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (26,349) (15,824)
Proceed from sales (purchase) of marketable securities 36,263 (8,433)
------- -------
Net cash provided by (used in) investing activities 9,914 (24,257)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 5,791 3,434
Purchase of common stock (29,997) 0
------- -------
Net cash (used in) provided by financing activities (24,206) 3,434
NET DECREASE IN CASH AND CASH EQUIVALENTS (3,251) (2,815)
CASH AND CASH EQUIVALENTS:
Beginning of period 8,027 8,755
------- -------
End of period $ 4,776 $ 5,940
======= =======
OTHER CASH FLOW INFORMATION:
Cash paid during the year for income taxes $ 7,643 $14,173
======= =======
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
5
<PAGE> 6
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The unaudited interim consolidated financial statements of The Gymboree
Corporation and its wholly-owned subsidiaries (the "Company") as of and
for the periods ended August 2, 1997 and August 4, 1996 have been prepared
pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are
adequate to make the information presented not misleading. It is
recommended that these financial statements be read in conjunction with
the consolidated financial statements and notes thereto included in the
Company's Annual Report on Form 10-K for the year ended February 2, 1997.
The accompanying interim consolidated financial statements reflect all
adjustments which are, in the opinion of management, necessary for a fair
statement of the results for the interim periods presented and necessary
to present fairly the results of operations, the financial position and
cash flows for the periods presented. All such adjustments are of a normal
and recurring nature. Certain prior year amounts have been reclassified to
conform with the current year presentation.
2. MERCHANDISE INVENTORIES
Merchandise inventories are recorded under the retail method of
accounting and are stated at the lower of cost or market.
3. INCOME TAXES
The Company's effective tax rate in the second quarter of fiscal 1997
was 37%, compared to 38% for the same period last year.
4. STOCK REPURCHASE PLAN
In February 1997, the Board of Directors authorized the Company to
repurchase up to $30 million of its outstanding common stock in the open
market. The Company completed its repurchase of 1,202,500 shares of common
stock in May 1997.
5. RECENTLY ISSUED ACCOUNTING STANDARDS
In February 1997, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards No. 128, "Earnings per
Share" (SFAS No. 128). The Company is required to adopt SFAS No. 128 in
the fourth quarter of fiscal 1997. At that time, the Company will restate
earnings per share (EPS) data for prior periods to conform with SFAS No.
128. Earlier application is not permitted. SFAS No. 128 replaces current
EPS reporting requirements and requires a dual presentation of basic and
diluted EPS. Basic EPS excludes dilution and is computed by dividing net
income by the weighted average of common shares outstanding for the
period. Diluted EPS reflects the potential dilution that could occur if
stock options, convertible debt instruments or other securities
6
<PAGE> 7
or contracts to issue common stock were exercised or converted into common
stock. If SFAS No. 128 had been in effect during the current and prior
year periods, basic and diluted EPS would have been $0.19 and $0.17 for
the quarters ended August 2, 1997 and August 4, 1996, respectively, and
$0.53 and $0.50 for the twenty-six weeks ended August 2, 1997 and August
4, 1996, respectively.
In June 1997, the FASB issued Statements of Financial Accounting
Standards No. 130, Reporting Comprehensive Income, which requires that an
enterprise report, by major components and as a single total, the change
in its net assets during the period from nonowner sources, and No. 131,
Disclosures about Segments of an Enterprise and Related Information, which
establishes annual and interim reporting standards for an enterprise's
operating segments and related disclosures about its products, services,
geographic areas, and major customers. Adoption of these statements will
not impact the Company's consolidated financial position, results of
operations or cash flows, and any effect will be limited to the form and
the content of its disclosures. Both statements are effective for fiscal
years beginning after December 15, 1997 with earlier application
permitted.
7
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, (i) selected
income statement data expressed as a percentage of net sales, (ii) the
percentage change from the same period of the prior year in such selected income
statement data and (iii) the number of stores open at the end of each such
period:
<TABLE>
<CAPTION>
Percentage
As a Percentage of Net Sales Change in
------------------------------------------- Dollar Amounts
Thirteen Twenty-Six From
Weeks Ended Weeks Ended 1996 to 1997
--------------------- -------------------- --------------
August 2, August 4, August 2, August 4, 13 26
1997 1996 1997 1996 weeks weeks
--------- --------- --------- --------- ------- -----
<S> <C> <C> <C> <C> <C> <C>
Net sales 100.0 % 100.0 % 100.0 % 100.0 % 24 % 24 %
Cost of goods sold, including
buying and occupancy expenses (57.5) (56.6) (55.8) (53.7) 26 28
----- ----- ----- -----
Gross Profit 42.5 43.4 44.2 46.3 21 18
Selling, general and administrative
expenses (33.5) (33.1) (32.1) (31.5) 25 26
Play program income (loss) 0.1 (0.0) 0.1 0.1 (1,036) (13)
----- ----- ----- -----
Operating income 9.1 10.3 12.2 14.9 10 1
Interest income 1.0 1.7 1.1 1.5 (25) (6)
----- ----- ----- -----
Income before income taxes 10.1 11.9 13.3 16.4 5 1
Income taxes (3.7) (4.5) (4.9) (6.2) 2 (2)
----- ----- ----- -----
Net income 6.4 % 7.4 % 8.4 % 10.1 % 7 % 2 %
===== ===== ===== =====
Number of stores at end of period 401 326 401 326
</TABLE>
8
<PAGE> 9
RESULTS OF OPERATIONS (CONTINUED)
THIRTEEN WEEKS ENDED AUGUST 2, 1997 COMPARED TO THIRTEEN WEEKS ENDED AUGUST 4,
1996
NET SALES
Net sales in the second quarter of fiscal 1997 increased 24% to $71.7
million compared to $57.9 million in the same period last year. Sales for the
additional 27 stores opened in fiscal 1997 contributed $5.5 million of the
increase in net sales. Stores opened prior to fiscal 1997, but not qualifying as
comparable stores, in addition to six stores that were expanded in the second
quarter of 1997, contributed $8.0 million of the increase in net sales.
Comparable store net sales increased 1% in the second quarter and contributed
$255,000 of the increase in net sales.
GROSS PROFIT
Gross profit for the thirteen weeks ended August 2, 1997 increased 21% to
$30.5 million from $25.1 million in the same period last year. As a percentage
of net sales, gross profit was 42.5% in the second quarter of fiscal 1997
compared to 43.4% in the same period last year. The overall decrease in gross
profit during the second quarter of 1997 as compared to the second quarter of
1996 is attributed to an increase (1% of net sales) in buying and occupancy
expenses, which was offset in part by an overall decrease in markdowns as a
percentage of net sales.
The Company is planning higher average per store inventory levels for the
balance of 1997 as compared to 1996. The increase in average per store inventory
levels is expected to have a favorable impact on comparable store sales,
however, gross profit as a percentage of sales may decline.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses ("S,G&A"), which principally
consist of non-occupancy store expenses, corporate overhead and distribution
expenses, increased to 33.5% of net sales in the second quarter of fiscal 1997,
compared to 33.1% of net sales in the same period last year.
The increase in S,G&A was primarily attributed to expenses (1.2% of net
sales) associated with funding the international expansion in the United Kingdom
and the Republic of Ireland coupled with increases in Corporate S,G&A expenses
(1% of net sales). This was offset in part by the elimination of the catalog
operation (0.9% of net sales) as well as improved leverage of store payroll
expenses (0.5% of net sales).
The Company expects total S,G&A expenses, as a percentage of net sales, to
decline for the remainder of fiscal 1997 as compared to the same period in
1996, primarily due to expenses leverage from the discontinuation of the
catalog business at the end of fiscal 1996, partially offset by costs related
to international store expansions.
INTEREST INCOME
Interest income decreased 25% to $722,000 during the second quarter of 1997
from $962,000 during the second quarter of the prior year. The decrease in
interest income is primarily due to the decrease in cash, cash equivalents and
investments during the second quarter of 1997 as compared to the same period in
1996 as a result of the $30 million stock repurchase program in May 1997.
INCOME TAX
The Company's effective tax rate for the second quarter of fiscal 1997 was
37%, compared to 38% for the same period last year.
9
<PAGE> 10
RESULTS OF OPERATIONS (CONTINUED)
TWENTY-SIX WEEKS ENDED AUGUST 2, 1997 COMPARED TO TWENTY-SIX WEEKS ENDED AUGUST
4, 1996
NET SALES
Net sales for the twenty-six weeks ended August 2, 1997 increased 24% to
$156.9 million compared to $127.0 million in the same period last year. Sales
for the 48 stores opened in fiscal 1997, through August 2, 1997, contributed
$9.0 million of the increase in net sales. Stores opened prior to fiscal 1997,
but not qualifying as comparable stores, in addition to 17 stores that were
expanded in fiscal 1997, contributed $19.6 million of the increase in net sales.
Comparable store net sales increased 1% in the first six months of fiscal 1997,
which contributed $1.3 million to the increase in net sales.
GROSS PROFIT
Gross profit for the twenty-six weeks ended August 2, 1997 increased 18% to
$69.4 million from $58.8 million in the same period last year. As a percentage
of net sales, gross profit was 44.2% in the first six months of fiscal 1997
compared to 46.3% in the same period last year. The overall decrease in gross
profit, as a percentage of net sales, was attributed to increases in buying and
occupancy costs coupled with lower initial mark-ups, offset by less promotional
pricing during the twenty-six weeks ended August 2, 1997 as compared to the
twenty-six weeks ended August 4, 1996.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses ("S,G&A"), which principally
consist of non-occupancy store expenses, corporate overhead and distribution
expenses, increased to 32.1% of net sales in the twenty-six weeks ended August
2, 1997, compared to 31.5% of net sales in the same period last year.
The increase in S,G&A expenses, as a percentage of net sales, was primarily
due to expenses related to the resignation of the Company's chief executive
officer in February 1997, which resulted in a one time pre-tax charge of
$900,000.
INTEREST INCOME
Interest income in fiscal 1997 decreased 10.5% to $1.7 million from $1.9
million in the prior year. The decrease in interest income is primarily due to
the overall decrease in cash, cash equivalents and investments during the first
half of 1997, as compared to the same period in 1996, as a result of the
completion of the Company's stock repurchase program in May 1997.
INCOME TAX
The Company's effective tax rate in the first quarter of fiscal 1997 was
37%, compared to 38% for the same period last year.
10
<PAGE> 11
FINANCIAL CONDITION
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operating activities of $11.0 million was primarily
attributable to $13.2 million of net income and $5.9 million of depreciation and
amortization, offset in part by $7.9 million in merchandise inventory. The
decline in cash provided by operating activities for the second quarter of 1997
compared to the second quarter of 1996, was primarily attributable to the
decrease of accounts payable due to timing.
Cash provided by investing activities of $9.9 million related primarily to
$36.3 million generated from sales of certain marketable securities offset by
$26.3 million in capital expenditures related primarily to expenses associated
with new store openings, relocations and/or expansion of certain existing stores
and the construction of the new distribution center.
Cash used in financing activities of $24.2 million was primarily due to the
completion of the Company's common stock repurchase program of $30.0 million
offset in part by cash proceeds received from the exercise of stock options of
$5.8 million.
The combined balances of cash, cash equivalents and investments were $50.8
million at August 2, 1997, a decrease of $39.6 million from February 2, 1997.
The Company's investments consist largely of short-to-medium term investment
grade securities. Working capital as of August 2, 1997 was $78.4 million
compared to $105.2 million at the end of fiscal 1996. The decrease in working
capital was primarily due to the Company's common stock repurchase program and
the increases in merchandise inventory, partially offset by decreases in
accounts payable and income tax payable.
The Company estimates that capital expenditures during fiscal 1997 will be
between $50 million and $60 million, and will be principally used to fund the
opening of approximately 75 to 85 new stores, to remodel or expand approximately
20 existing stores, and to complete the construction of a new 300,000 square
foot distribution center on 15 acres of land located in Dixon, California. The
Company purchased the land and commenced construction in May 1997. The target
opening for this new facility is January 1998.
The Company has no long term debt and did not require any cash borrowings
for the first twenty-six weeks of fiscal 1997 or 1996. The Company currently has
lines of credit that allow up to $125 million of long-term unsecured letters of
credit. As of August 21, 1997, $78.7 million was available. The Company uses
these lines primarily to support letters of credit which fund its foreign
sourcing of merchandise inventories.
The Company anticipates that cash generated from operations, together with
its existing cash resources, and funds available from its current letter of
credit facilities will be sufficient to satisfy its cash needs through at least
fiscal 1998.
11
<PAGE> 12
OTHER FACTORS THAT MAY AFFECT FUTURE PERFORMANCE
This Form 10-Q contains certain forward-looking statements reflecting the
Company's current expectations, including statements regarding anticipated store
openings, completion of a distribution center and future comparable store net
sales, inventory, expense and liquidity levels. There can be no assurance that
actual results will not vary materially from results projected in such
forward-looking statements as a result of a number of factors, including
competitive market conditions, levels of discretionary consumer spending,
general economic conditions, the degree of promotional pricing activity by the
Company, inventory levels, and the ability of the Company to successfully
identify and respond to emerging children's fashion trends, to effectively
monitor and control costs, and to effectively manage anticipated international
and domestic growth. Other factors that may cause actual results to differ
materially include those set forth in the reports that the Company files from
time to time with the Securities and Exchange Commission.
Other factors that may affect future performance include the following:
INVENTORY LEVELS
The Company is planning higher average per store inventory levels for the
remainder of 1997 as compared to the same period in 1996. While the increase in
average per store inventory levels is expected to have a favorable impact on
comparable store sales, there can be no assurance that the Company will
experience increases in comparable store sales.
INTERNATIONAL EXPANSION
During the second quarter of fiscal 1997, the Company opened one additional
store in Canada, bringing the number of stores in Canada to eight; and the
Company also opened two stores in the greater London area of the United Kingdom
and one store in Dublin, Ireland. For the remainder of fiscal 1997, the Company
plans to further its international expansion in Canada and the United Kingdom.
The success of this planned expansion will depend upon a number of factors,
including the availability of suitable store locations, the ability to provide
an adequate supply of inventory and the ability to hire and train qualified
employees, of which there can be no assurance.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
11 Computation of Net Income per Share
27 Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed or required to be filed for the
2nd quarter of the fiscal year.
12
<PAGE> 13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE GYMBOREE CORPORATION
------------------------
(Registrant)
Dated: September 15, 1997 By: /s/ GARY WHITE
----------------------------------
Gary White
President and Chief Executive Officer
(Principal executive officer of the registrant)
Dated: September 15, 1997 By: /s/ JAMES P. CURLEY
----------------------------------
James P. Curley
Senior Vice President,
Chief Financial Officer and
Chief Administrative Officer
(Principal financial and accounting
officer of the registrant)
13
<PAGE> 14
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Description Page No.
- ------- ----------- --------
<S> <C> <C>
11 Computation of Net Income per Share 15
27 Financial Data Schedule --
</TABLE>
14
<PAGE> 1
EXHIBIT 11
THE GYMBOREE CORPORATION
COMPUTATION OF NET INCOME PER SHARE
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
13 WEEKS ENDED 26 WEEKS ENDED
-------------------- --------------------
AUGUST 2, AUGUST 4, AUGUST 2, AUGUST 4,
1997 1996 1997 1996
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
NET INCOME $ 4,578 $ 4,285 $13,177 $12,878
======== ======== ======== ========
Weighted average number of shares
outstanding during the period:
Common Stock 24,236 25,161 24,642 25,103
Add incremental shares from assumed
exercise of stock options and warrants 318 554 383 483
-------- -------- -------- --------
24,554 25,715 25,025 25,586
======== ======== ======== ========
PRIMARY NET INCOME PER SHARE $ 0.19 $ 0.17 $ 0.53 $ 0.50
======== ======== ======== ========
Weighted average number of shares
outstanding during the period:
Common Stock 24,302 25,161 24,642 25,103
Add incremental shares from assumed
exercise of stock options and warrants 319 555 381 491
-------- -------- -------- --------
Weighted average common and common
equivalent shares outstanding during
the period 24,621 25,716 25,023 25,594
======== ======== ======== ========
FULLY DILUTED NET INCOME PER SHARE $ 0.19 $ 0.17 $ 0.53 $ 0.50
======== ======== ======== ========
</TABLE>
15
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-1998
<PERIOD-START> FEB-03-1997
<PERIOD-END> AUG-02-1997
<EXCHANGE-RATE> 1
<CASH> 4,776
<SECURITIES> 46,011
<RECEIVABLES> 4,988
<ALLOWANCES> 0
<INVENTORY> 56,840
<CURRENT-ASSETS> 114,214
<PP&E> 114,444
<DEPRECIATION> 24,391
<TOTAL-ASSETS> 205,563
<CURRENT-LIABILITIES> 35,816
<BONDS> 0
0
0
<COMMON> 39,928
<OTHER-SE> 112,440
<TOTAL-LIABILITY-AND-EQUITY> 205,563
<SALES> 71,684
<TOTAL-REVENUES> 71,684
<CGS> 41,232
<TOTAL-COSTS> 41,232
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 7,266
<INCOME-TAX> 2,688
<INCOME-CONTINUING> 4,578
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,578
<EPS-PRIMARY> 0.19
<EPS-DILUTED> 0.19
</TABLE>
