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 May 4, 1996
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 0-14681
J. BAKER, INC.
(Exact name of registrant as specified in its charter)
Massachusetts 04-2866591
(State of Incorporation) (I.R.S. Employer Identification Number)
555 Turnpike Street, Canton, Massachusetts 02021
(Address of principal executive offices)
(617) 828-9300
(Registrant's telephone number, including area code)
The registrant (1) has filed all reports to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12 months (or for such
period that the registrant was required to file such reports), and (2) has been
subject to filing such reports for the past 90 days.
YES [X] NO
The number of shares outstanding of the registrant's common stock as of May 4,
1996 was 13,880,352.
1
<PAGE>
J. BAKER, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
May 4, 1996 (unaudited) and February 3, 1996
<TABLE>
<S> <C> <C>
May 4, February 3,
Assets 1996 1996
------ -------- -------
Current assets:
Cash and cash equivalents $ 1,545,371 $ 3,287,141
Accounts receivable:
Trade, net 28,303,029 19,514,985
Other 3,008,729 3,219,862
---------- ----------
31,311,758 22,734,847
---------- ----------
Merchandise inventories 316,462,108 285,703,289
Prepaid expenses 9,754,709 8,600,990
Income tax receivable - 7,236,732
Deferred income taxes 7,913,078 9,198,000
----------- -----------
Total current assets 366,987,024 336,760,999
----------- -----------
Property, plant and equipment, at cost:
Land and buildings 25,064,423 25,064,423
Furniture, fixtures and equipment 118,506,277 115,099,770
Leasehold improvements 45,567,191 43,442,932
----------- -----------
189,137,891 183,607,125
Less accumulated depreciation 67,484,325 62,524,262
----------- -----------
Net property, plant and equipment 121,653,566 121,082,863
----------- -----------
Deferred income taxes 6,939,000 6,939,000
Other assets, at cost, less accumulated amortization 57,767,325 61,298,880
----------- -----------
$553,346,915 $526,081,742
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $ 1,500,000 $ 1,500,000
Accounts payable 101,388,982 105,113,721
Accrued expenses 17,770,710 25,066,874
----------- -----------
Total current liabilities 120,659,692 131,680,595
----------- -----------
Other liabilities 2,641,438 2,598,026
Long-term debt, net of current portion 172,000,000 133,000,000
Senior subordinated debt 2,922,386 4,412,711
Convertible subordinated debt 70,353,000 70,353,000
Stockholders' equity 184,770,399 184,037,410
----------- -----------
$553,346,915 $526,081,742
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE>
J. BAKER, INC. AND SUBSIDIARIES
Statements of Consolidated Earnings
For the quarters ended May 4, 1996 and April 29, 1995
(Unaudited)
<TABLE>
<S> <C> <C>
May 4, 1996 April 29, 1995
----------- --------------
Sales $195,530,209 $231,384,692
Cost of sales 104,909,360 127,852,826
----------- -----------
Gross profit 90,620,849 103,531,866
Selling, administrative and general expenses 79,284,091 93,101,690
Depreciation and amortization 7,208,503 6,971,000
----------- -----------
Operating income 4,128,255 3,459,176
Net interest expense 2,777,695 2,422,523
----------- -----------
Earnings before income taxes 1,350,560 1,036,653
Taxes on earnings 525,000 399,000
----------- -----------
Net earnings $ 825,560 $ 637,653
========== ===========
Net earnings per common share:
Primary $ 0.06 $ 0.05
========== ==========
Fully diluted $ 0.06 $ 0.05
========== ==========
Number of shares used to compute net earnings per common share:
Primary 13,874,323 13,845,796
========== ==========
Fully diluted 13,941,926 13,968,470
========== ==========
Dividends declared per share $ 0.015 $ 0.015
========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
J. BAKER, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the quarters ended May 4, 1996 and April 29, 1995
(Unaudited)
<TABLE>
<S> <C> <C>
May 4, 1996 April 29, 1995
----------- --------------
Cash flows from operating activities:
Net earnings $ 825,560 $ 637,653
Adjustments to reconcile net earnings to net cash
used in operating activities:
Depreciation and amortization:
Fixed assets 4,960,063 4,754,000
Deferred charges, intangible assets and
deferred financing costs 2,258,115 2,228,968
Deferred income taxes 1,284,922 -
Change in:
Accounts receivable (8,576,911) (6,085,874)
Merchandise inventories (30,758,819) (14,953,060)
Prepaid expenses (1,153,719) (809,786)
Accounts payable (3,724,739) (10,273,185)
Accrued expenses (7,296,164) (4,500,432)
Income taxes payable/receivable 7,236,732 (472,357)
Other liabilities 73,328 3,905
----------- -----------
Net cash used in operating
activities (34,871,632) (29,470,168)
----------- -----------
Cash flows from investing activities: Capital expenditures for:
Property, plant and equipment (5,530,766) (11,896,055)
Other assets (459,801) (2,286,769)
Payments received on notes receivable 1,713,000 -
----------- -------------
Net cash used in investing activities (4,277,567) (14,182,824)
----------- -----------
Cash flows from financing activities:
Repayment of senior debt (1,500,000) -
Proceeds from long-term debt 39,000,000 40,600,000
Proceeds from issuance of common stock 115,621 11,903
Payment of dividends (208,192) (207,700)
----------- ------------
Net cash provided by financing activities 37,407,429 40,404,203
----------- ------------
Net decrease in cash (1,741,770) (3,248,789)
Cash and cash equivalents at beginning of year 3,287,141 4,915,491
----------- -----------
Cash and cash equivalents at end of period $ 1,545,371 $ 1,666,702
=========== ===========
Supplemental disclosure of cash flow information Cash paid (received) for:
Interest $ 1,528,273 $ 1,331,164
Income taxes 984,192 1,426,645
Income taxes refunded (8,315,483) -
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements
4
<PAGE>
J. BAKER, INC. AND SUBSIDIARIES
NOTES
1] The accompanying unaudited consolidated financial statements, in the opinion
of management, include all adjustments (which consist only of recurring
accruals) necessary for a fair presentation of the Company's financial position
and results of operations. The results for the interim periods are not
necessarily indicative of results that may be expected for the entire fiscal
year.
2] Primary earnings per share is based on the weighted average number of shares
of Common Stock outstanding during such period. Stock options and warrants are
excluded from the calculation since they have less than a 3% dilutive effect.
Fully diluted earnings per share is based on the weighted average number
of shares of Common Stock outstanding during such period. Included in this
calculation is the dilutive effect of stock options and warrants. The common
stock issuable under the 7% convertible subordinated notes were not included in
the calculation for the quarters ended May 4, 1996 and April 29, 1995 because
they were antidilutive.
3] On May 22, 1996, the Company announced that it had agreed with Bain Capital
("Bain") to terminate their letter of intent executed on April 19, 1996 with
respect to the proposed sale of the Company's SCOA division to an entity which
was to be formed by Bain along with Dennis B. Tishkoff, SCOA's president, and
division management. The Company intends to continue its efforts to sell the
SCOA division on terms satisfactory to the Company. Sales in the Company's SCOA
division were $44.7 million for the quarter ended May 4, 1996.
4] On September 5, 1995, the Company announced its intent to dispose of its
Fayva footwear division by the end of fiscal 1996. When the Company acquired
Morse in early 1993, it did so primarily for the strategic fit of the Morse and
Baker licensed footwear divisions. In addition, the Company believed, at that
time, that it could improve the operations of Morse's Fayva division. Fayva's
profitability had suffered in the years prior to the Company's acquisition of
Morse due, in part, to the financial difficulties of Morse. The Company believed
that by bringing additional financial resources to Fayva, along with making
divisional management changes, it could restore the division to profitability.
However, after operating Fayva for two and one half years, the Company decided
to dispose of Fayva due to the continued operating losses generated by the
division, along with Fayva's declining market share in an already crowded
discount retail footwear industry.
During the third quarter of fiscal 1996, the Company recorded
restructuring charges of $69.3 million ($41.6 million or $3.00 per share on an
after tax basis) related to the disposal of Fayva. Such charges include the
costs to exit from and dispose of the Fayva division, including the loss on the
disposal of inventory, severance payments, the write off of fixed assets and the
costs to dispose of store leases. Accrued at May 4, 1996 are costs of $5.2
million, primarily related to lease termination costs, which are expected to be
paid by the end of fiscal 1997. As part of its Fayva exit strategy, the Company
engaged a third party to maximize the Company's net recovery from the
liquidation of the Fayva inventory. All of Fayva's inventory was liquidated by
the end of fiscal 1996. The Company also hired a consultant to mitigate the
disposition costs of the Fayva store leases. Sales in the Company's Fayva
division for the quarter ended April 29, 1995 and fiscal year ended February 3,
1996 were $37.3 million and $106.0 million, respectively.
5] On June 23, 1995, Bradlees Stores, Inc. ("Bradlees"), a licensor of the
Company, filed for protection under Chapter 11 of the United States Bankruptcy
Code. At the time of the bankruptcy filing, the Company had outstanding accounts
receivable of approximately $1.8 million due from Bradlees. Under bankruptcy
law, Bradlees has the option of continuing (assuming) the existing license
agreement with the Company or terminating (rejecting) that agreement. If the
license agreement is assumed, Bradlees must cure all defaults under the
agreement and the Company will collect in full the outstanding past due
receivable. The Company has no assurance that the agreement will be assumed or
that Bradlees will continue in business. Although the Company believes that the
rejection of the license agreement or the cessation of Bradlees' business is not
probable, in the event that the agreement is rejected or Bradlees does not
continue in business, the Company believes it will have a substantial claim for
damages. If such a claim is necessary, the amount realized by the Company,
relative to the carrying values of the Company's Bradlees-related assets, will
be based on the relevant facts and circumstances. The Company does not expect
this filing under the Bankruptcy Code to have a material adverse effect on
future earnings. The Company's sales in the Bradlees chain for the quarter ended
May 4, 1996 were $12.2 million.
5
<PAGE>
6] On October 18, 1995, Jamesway Corporation ("Jamesway"), then a licensor of
the Company, filed for protection under Chapter 11 of the United States
Bankruptcy Code and announced its intention to liquidate its inventory, fixed
assets and real estate and to cease operation of its business in all of its 90
stores. During the quarter ended February 3, 1996, the Company participated in
Jamesway's going out of business sales and liquidated substantially all of its
footwear inventory in the 90 Jamesway stores during the going out of business
sales. At the time of the bankruptcy filing, the Company had outstanding
accounts receivable of approximately $1.4 million due from Jamesway. Since
Jamesway ceased operation of its business, the Company believes that rejection
of its license agreement is probable and has asserted a substantial claim for
damages. The Company does not expect the closing of the Jamesway stores to have
a material adverse effect on future earnings. The Company's sales in the
Jamesway chain for the quarter ended April 29, 1995 and fiscal year ended
February 3, 1996 were $5.6 million and $24.3 million, respectively.
7] On November 10, 1993, a federal jury in Minneapolis, MN returned a verdict
assessing royalties of $1,550,000, and additional damages of $1,500,000 against
the Company in a patent infringement suit brought by Susan Maxwell with respect
to a device used to connect pairs of shoes. Certain post trial motions were
filed by Susan Maxwell seeking treble damages, attorney's fees and injunctive
relief, which motions were granted on March 10, 1995. Judgment was entered for
Maxwell. The Company appealed the judgment. On June 11, 1996, the United States
Court of Appeals for the Federal Circuit reversed the trial court's findings in
part, affirmed the trial court's findings in part and vacated the award to
Maxwell of treble damages, attorney's fees and injunctive relief. The case has
been remanded to the trial court for a redetermination of damages consistent
with the opinion of the appellate court.
A complaint was also filed by Susan Maxwell in November, 1992 against
Morse Shoe, Inc. ("Morse"), a subsidiary of the Company, alleging infringement
of the patent referred to above. The Morse trial was stayed pending the outcome
of the J. Baker appeal. In light of the decision of the appeal court, a trial
date may be set in the next several months.
6
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
All references herein to fiscal 1997 and fiscal 1996 relate to the years ending
February 1, 1997 and February 3, 1996, respectively.
Results of Operations
First Quarter Fiscal 1997 versus First Quarter Fiscal 1996
Net sales decreased by $35.9 million to $195.5 million in the first
quarter of fiscal 1997 from $231.4 million in the first quarter of fiscal 1996.
Sales in the Company's footwear operations decreased by $46.5 million primarily
due to a $37.3 million sales decrease in the Company's Fayva division (which is
the result of the closing of all 357 Fayva stores in the third quarter of fiscal
1996), a 3.7% decrease in comparable retail footwear store sales (Comparable
retail footwear store sales increases/decreases are based upon comparisons of
weekly sales volume in licensed departments and Parade of Shoes stores which
were open in corresponding weeks of the two comparison periods), and a decrease
in the number of discount licensed shoe departments in operation during the
first quarter of fiscal 1997 versus the first quarter of fiscal 1996 (which was
due in large part to Jamesway ceasing operations). Sales in the Company's
apparel operations increased by $10.6 million primarily due to an increase in
the number of Casual Male Big & Tall stores and Work 'n Gear stores in operation
during the first quarter of fiscal 1997 over the first quarter of fiscal 1996
and a 4.9% increase in comparable specialty apparel store sales. (Comparable
apparel store sales increases/decreases are based upon comparisons of weekly
sales volume in Casual Male Big & Tall stores and Work 'n Gear stores which were
open in corresponding weeks of the two comparison periods.)
Cost of sales constituted 53.7% of sales in the first quarter of fiscal
1997 as compared to 55.3% of sales in the first quarter of fiscal 1996. Cost of
sales in the Company's footwear operations was 55.1% of sales in the first
quarter of fiscal 1997 as compared to 56.6% of sales in the first quarter of
fiscal 1996. The decrease in such percentage was primarily attributable to lower
markdowns as a percentage of sales partially offset by a lower initial markup on
merchandise purchases. Cost of sales in the Company's apparel operations was
50.6% of sales in the first quarter of fiscal 1997 which was comparable to the
50.7% of sales in the first quarter of fiscal 1996.
Selling, administrative and general expenses decreased $13.8 million or
14.8% in the first quarter of fiscal 1997 as compared to the first quarter of
fiscal 1996 primarily due to the closing of all 357 stores in the Company's
Fayva division in the third quarter of fiscal 1996. As a percentage of sales,
selling, administrative and general expenses were 40.5% in the first quarter of
fiscal 1997 as compared to 40.2% in the first quarter of fiscal 1996 primarily
due to the relative increase in sales in the Company's apparel operations, which
have higher selling, administrative and general expenses as a percentage of
sales than the Company's footwear operations. Selling, administrative and
general expenses in the Company's footwear operations were 39.5% of sales in the
first quarter of fiscal 1997 as compared to 39.4% of sales in the first quarter
of fiscal 1996. This increase was primarily the result of the decline in
comparable retail footwear store sales. Selling, administrative and general
expenses in the Company's apparel operations were 42.8% of sales in the first
quarter of fiscal 1997 as compared to 43.0% in the first quarter of fiscal 1996.
This decrease was primarily the result of the increase in comparable apparel
store sales.
Depreciation and amortization expense increased by $238,000 in the first
quarter of fiscal 1997 as compared to the first quarter of fiscal 1996 due to an
increase in depreciable and amortizable assets. This increase was partially
offset by the write-off of furniture, fixtures and leasehold improvements as a
result of the closing of the Company's Fayva division in the third quarter of
fiscal 1996.
As a result of the above described effects, the Company's operating income
increased by 19.3% to $4.1 million in the first quarter of fiscal 1997 from $3.5
million in the first quarter of fiscal 1996. As a percentage of sales, operating
income was 2.1% in the first quarter of fiscal 1997 as compared to 1.5% in the
first quarter of fiscal 1996.
Net interest expense increased $355,000 to $2.8 million in the first
quarter of fiscal 1997 from $2.4 million in the first quarter of fiscal 1996
primarily due to higher rates on borrowings.
7
<PAGE>
Taxes on earnings for the first quarter of fiscal 1997 were $525,000
yielding an effective tax rate of 38.9%, as compared to taxes of $399,000,
yielding an effective tax rate of 38.5% in the first quarter of fiscal 1996.
Net earnings for the first quarter of fiscal 1997 were $826,000 as
compared to net earnings of $638,000 in the first quarter of fiscal 1996, an
increase of 29.5%.
Financial Condition
May 4, 1996 versus February 3, 1996
The increase in accounts receivable at May 4, 1996 from February 3, 1996
is primarily due to seasonal factors, licensed sales in April being higher than
licensed sales in January.
Merchandise inventories at May 4, 1996 were higher than at February 3,
1996 primarily due to a seasonal increase in the average inventory level per
location.
The decrease in income tax receivable is due to receipt of the estimated
federal income tax refund recorded at February 3, 1996 which related to the
federal income tax carryback benefits resulting from the disposal of the Fayva
division.
The decrease in other assets is primarily due to the recording of
amortization expense and collections on notes receivable in the first quarter of
fiscal 1997.
The ratio of accounts payable to merchandise inventory was 32.0% at May 4,
1996 as compared to 36.8% at February 3, 1996. This decrease is primarily due to
seasonal factors. The ratio of accounts payable to merchandise inventory was
31.7% at April 29, 1995.
Accrued expenses at May 4, 1996 decreased from the balance at February 3,
1996 primarily due to payments of costs related to the disposal of the Fayva
division.
Debt increased $37.5 million to $245.3 million at May 4, 1996 from $207.8
million at February 3, 1996 primarily due to additional borrowings under the
Company's revolving line of credit to meet seasonal working capital needs and to
fund capital expenditures.
Liquidity and Capital Resources
The Company currently has a $240 million revolving credit facility on an
unsecured basis with Fleet National Bank of Massachusetts, The First National
Bank of Boston, NatWest Bank N.A., The Yasuda Trust and Banking Co., Ltd., Bank
Hapoalim B.M., National City Bank, Columbus, Standard Chartered Bank and
Citizens Savings Bank (the "Banks"). As amended to date, the aggregate
commitment amount will be reduced by $10 million on December 29, 1996.
Borrowings under the revolving credit facility bear interest at variable rates
and, at the discretion of the Company, can be in the form of loans, bankers'
acceptances and letters of credit. This facility expires in June, 1997.
Consistent with prior practices, the Company will attempt to extend or
renegotiate the revolving credit facility prior to the end of fiscal 1997. As of
May 4, 1996, the Company had outstanding obligations under the revolving credit
facility of $217.9 million, consisting of loans, obligations under bankers'
acceptances and letters of credit.
8
<PAGE>
Following is a table showing actual and planned store openings by division
for fiscal 1997:
<TABLE>
<S> <C> <C> <C>
Actual Openings Planned Openings Total
First Second - Fourth Actual/Planned
Division Quarter Fiscal 1997 Quarters Fiscal 1997 Openings
-------- ------------------- -------------------- --------
Licensed 35 45 80
Parade of Shoes 42 0 42
Casual Male 26 18 44
Work 'n Gear 0 0 0
</TABLE>
Offsetting the above actual and planned store openings, the Company closed
64 licensed departments, 3 Casual Male stores, 7 Parade of Shoes stores and 2
Work 'n Gear stores during the first quarter of fiscal 1997. The Company has
plans to close approximately an additional 98 licensed departments during the
second through fourth quarters of fiscal 1997, 49 of which are due to the
termination of the license agreement at the end of the second quarter with
Younkers, Inc. ("Younkers"), a licensor of the SCOA division. Also, the Company
plans to close approximately 2 Casual Male stores, 4 Parade of Shoes stores and
1 Work 'n Gear store during the second through fourth quarters of fiscal 1997.
The information on store openings and closings reflects management's
current plans and should not be interpreted as an assurance of actual future
developments.
The Company believes that amounts available under its revolving credit
facility, along with internally generated funds, will be sufficient to meet its
operating and capital requirements under ordinary circumstances through the end
of the current fiscal year.
9
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) The Exhibits in the Exhibit Index are filed as part of this report.
(b) No reports on Form 8-K were filed by the registrant during the quarter
for which this report is filed.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
J. BAKER, INC.
By:/s/Alan I. Weinstein
Alan I. Weinstein
Senior Executive Vice President
and Principal Financial Officer
Date: Canton, Massachusetts
June 14, 1996
By:/s/Philip Rosenberg
Philip Rosenberg
First Senior Vice President, Treasurer
and Corporate Controller (Chief Accounting
Officer)
Date: Canton, Massachusetts
June 14, 1996
11
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
-------------------
EXHIBITS
Filed with
Quarterly Report on Form 10-Q
of
J. BAKER, INC.
555 Turnpike Street
Canton, MA 02021
For the Quarter ended May 4, 1996
12
<PAGE>
EXHIBIT INDEX
<TABLE>
<S> <C>
Exhibit Page No.
- ------- --------
10. Material Contracts
(.01) Amendment to Employment Agreement between Stuart M. Needleman *
and J. Baker, Inc., dated April 5, 1996, attached.
11. Computation of Primary and Fully Diluted Earnings Per Share, attached. *
27. Financial Data Schedule **
</TABLE>
* Included herein
** This exhibit has been filed with the Securities and Exchange
Commission as part of J. Baker, Inc.'s electronic submission of this
Form 10-Q under EDGAR filing requirements. It has not been included
herein.
13
<PAGE>
EXHIBIT 11
J. BAKER, INC. AND SUBSIDIARIES
Computation of Primary and Fully Diluted Earnings Per Share*
(Unaudited)
<TABLE>
<S> <C> <C>
Quarter Ended
May 4, April 29,
1996 1995
-------- ------
PRIMARY:
Net Earnings $ 825,560 $ 637,653
========== ==========
Weighted average number of common
shares outstanding 13,874,323 13,845,796
========== ==========
Earnings Per Share $0.060 $0.046
========== ==========
ASSUMING FULL DILUTION:
Net Earnings $ 825,560 $ 637,653
========= ===========
Weighted average number of common
shares outstanding 13,874,323 13,845,796
Dilutive effect of outstanding stock options 67,603 122,674
--------- ----------
Weighted average number of common
shares as adjusted 13,941,926 13,968,470
========== ==========
Earnings per share $0.059 $0.046
========== ==========
</TABLE>
* This calculation is submitted in accordance with Item 601(b)(11) of Regulation
S-K.
14
<PAGE>
EXHIBIT 10.01
THIRD AMENDMENT
TO EMPLOYMENT AGREEMENT
DATED MARCH 25, 1993
Reference is made to the Executive Employment Agreement dated as of
November 1, 1993, as amended by an Amendment dated February 8, 1995 and a Second
Amendment dated November 1, 1995 (the "Agreement") by and between J. Baker, Inc.
and Stuart Needleman. Pursuant to paragraph 19 of the Agreement and in order to
further amend certain provisions of the Agreement, the Agreement is hereby
amended as follows:
1. Paragraph 6 of the Agreement is hereby amended by deleting the
phrase "ending on April 1, 1996" in the fifth line thereof and inserting in its
place the phrase "ending on April 1, 1997".
2. All other terms of the Agreement shall remain unchanged and continue
in full force and effect.
J. BAKER, INC.
By:/s/ Jerry M. Socol April 5, 1996
--------------------------- -------------
Jerry M. Socol Date
President and
Chief Executive Officer
/s/ Stuart M. Needleman April 5, 1996
- ---------------------------- -------------
Stuart Needleman Date
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF J. BAKER, INC. FOR THE QUARTER ENDED MAY 4, 1996 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-01-1997
<PERIOD-END> MAY-04-1996
<CASH> 1,545,371
<SECURITIES> 0
<RECEIVABLES> 34,421,063
<ALLOWANCES> 3,109,305
<INVENTORY> 316,462,108
<CURRENT-ASSETS> 366,987,024
<PP&E> 189,137,691
<DEPRECIATION> 67,484,325
<TOTAL-ASSETS> 553,346,915
<CURRENT-LIABILITIES> 120,659,692
<BONDS> 245,275,386
0
0
<COMMON> 6,940,112
<OTHER-SE> 177,830,287
<TOTAL-LIABILITY-AND-EQUITY> 553,346,915
<SALES> 195,530,209
<TOTAL-REVENUES> 195,530,209
<CGS> 104,909,360
<TOTAL-COSTS> 104,909,360
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,777,695
<INCOME-PRETAX> 1,350,560
<INCOME-TAX> 525,000
<INCOME-CONTINUING> 825,560
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 825,560
<EPS-PRIMARY> 0.06
<EPS-DILUTED> 0.06
</TABLE>
