FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) - March 2, 2000
Goody's Family Clothing, Inc.
-----------------------------
(Exact name of registrant as specified in its charter)
Tennessee 0-19526 62-0793974
- -------------------------------------------------------------------------------
(State or other jurisdiction of Commission file number I.R.S. Employer
incorporation or organization) Identification
Number)
400 Goody's Lane, Knoxville, Tennessee 37922
--------------------------------------------
(Address of principal executive offices) (Zip Code)
(865) 966-2000
--------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report.)
<PAGE>
Item 5. Other Events.
On March 2, 2000, Goody's Family Clothing, Inc. (the "Company") issued
a press release (the "Press Release") announcing its February 2000 sales results
and the adoption of certain changes in accounting methodology related to sales
returns, leased departments, and layaways in response to the Staff Accounting
Bulletin No. 101: "Revenue Recognition in Financial Statements" ("SAB 101").
The Press Release is attached hereto as Exhibit 99 and is incorporated in
its entirety herein by reference. See "Index to Exhibits."
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
INDEX TO EXHIBITS
- ------------------ ------------------------------------------------------------
Exhibit Description
Number
- ------------------ ------------------------------------------------------------
99. Press Release issued by the Goody's Family Clothing, Inc. on March 2, 2000.
99.1 Impact of Accounting Changes on Previously Reported EPS
99.2 Restated Statements of Operations Information
99.3 Restated Fiscal Monthly Sales for Fiscal 1999
<PAGE>
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 hereunto duly authorized.
GOODY'S FAMILY CLOTHING, INC.
(Registrant)
Date: March 8, 2000 /s/ Edward R. Carlin
------------- --------------------
Edward R. Carlin
Executive Vice-President and
Chief Financial Officer
<PAGE>
INDEX TO EXHIBITS
- ------------------ ------------------------------------------------------------
Exhibit Description
Number
- ------------------ ------------------------------------------------------------
99. Press Release issued by the Goody's Family Clothing, Inc. on March 2, 2000.
99.1 Impact of Accounting Changes on Previously Reported EPS
99.2 Restated Statements of Operations Information
99.3 Restated Fiscal Monthly Sales for Fiscal 1999
<PAGE>
Exhibit No. 99.
Contact: Edward R. Carlin
Chief Financial Officer
(865) 966-2000
GOODY'S FAMILY CLOTHING ANNOUNCES FEBRUARY SALES AND
CERTAIN CHANGES IN ACCOUNTING METHODOLOGY
-----------------------------------------
KNOXVILLE, Tenn. (March 2, 2000) - Goody's Family Clothing, Inc.
(Nasdaq/NM: GDYS) today reported total sales for the fiscal month of February
2000 of $70.5 million, an increase of 16.9% over February 1999 total sales of
$60.3 million. Comparable store sales for February 2000 increased 4.0% over
sales of February 1999.
February 1999 total sales figures give retroactive effect to the
Company's adoption of certain accounting changes related to sales returns and
leased departments. Although the impact of these changes is immaterial to all
periods presented, the Company chose to make the changes in response to the
recently issued Securities and Exchange Commission's Staff Accounting Bulletin
(SAB) No. 101, "Revenue Recognition in Financial Statements." These changes will
have no impact on the Company's annual net earnings for fiscal 1998 (as
previously reported) and fiscal 1999. However, the Company's previously issued
statements of operations for the four quarters of fiscal 1998 and the first
three quarters of fiscal 1999 will be restated to account for these changes. The
above changes in accounting methodology will not affect the calculations of
comparable store sales results throughout fiscal 2000.
Historically, the Company had recognized sales returns upon return of
the related merchandise by the customer. Under its new methodology, the Company
will provide for an estimate of sales returns in the month of the initial sale.
This change will have no effect on previously reported annual net earnings, but
will either increase or decrease certain previously reported quarterly net
earnings by approximately $0.01 per diluted share.
With respect to leased departments, the Company historically had
included the sales and cost of sales of its leased departments with the sales
and cost of sales of its wholly owned departments. Instead, the Company will
include the net rental income (sales less cost of sales) of its leased
departments in its reported sales. The Company does not currently have any
leased departments. This change will not affect previously reported gross profit
or net earnings.
Also, with respect to layaways, the Company historically had recorded
the sales and related gross profit from layaways upon receipt of the initial
layaway deposit from its customers. Beginning January 30, 2000 (the first day of
the first quarter of fiscal 2000), the Company will recognize the sale and the
related gross profit from layaways upon delivery of the merchandise to the
customer. The cumulative effect of this change (net of income taxes) is expected
to reduce diluted earnings per share by approximately $0.01 in the first quarter
of fiscal 2000. For fiscal 2000 and future years, this change is expected to
slightly reduce the Company's operating results in the first quarter, slightly
increase the Company's operating results in the fourth quarter and have a
negligible impact on the Company's operating results in the second and third
quarters. This change in accounting methodology for layaways will not affect the
calculations of comparable store sales results throughout fiscal 2000.
As noted, total sales for February 1999 have been restated to give
retroactive effect to the Company's new accounting methodology for sales returns
and leased departments. Any other fiscal 1999 total sales amounts, which may be
released during fiscal 2000 and thereafter for comparative purposes, will also
be restated.
-MORE-
<PAGE>
Goody's Reports February Sales
Page 2
March 2, 2000
The Company intends to file a Form 8-K as soon as practicable to
disclose the retroactive effects of these changes on its statements of
operations for the four quarters of fiscal 1998 and the first three quarters of
fiscal 1999.
The Company plans to release full year and fourth quarter fiscal 1999
financial results on Wednesday, March 15, 2000, and conduct a conference call
that day at 9:00 a. m. EST. To hear the Company's conference call, dial
1-212-896-6034.
During February 2000, the Company closed one store. In March 2000, the
Company plans to open three new stores, one each in Joplin, Missouri; and
Concord and Rocky Mount, North Carolina; and plans to close one store.
This press release contains certain forward-looking statements which
are based upon current expectations, plans and estimates and involve material
risks and uncertainties including, but not limited to, weather conditions; the
timing, magnitude and costs of opening new stores and the ability of the Company
to enter into leases for new store locations; the impact of competitors' store
expansion; the Company's financing plans; trends affecting the Company's
financial condition or results of operations; any unexpected impact on the
Company's financial statements and operating results as a result of the new
accounting methodologies discussed above; and the general economic conditions
within the Company's markets. The Company does not undertake to publicly update
or revise its forward-looking statements even if experience or future changes
make it clear that any projected results expressed or implied therein will not
be realized. Additional information on risk factors that could potentially
affect the Company's financial results may be found in the Company's public
filings with the Securities and Exchange Commission. Certain of such filings may
be accessed through the Securities and Exchange Commission's web site,
http://www.sec.gov.
With headquarters in Knoxville, Tennessee, Goody's is a retailer of
moderately priced apparel for women, men, and children operating 286 stores in
the 17 states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana,
Kentucky, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina,
Tennessee, Texas, Virginia and West Virginia.
-END-
<PAGE>
Exhibit 99.1
Goody's Family Clothing, Inc.
Impact of Accounting Changes on Previously Reported EPS
Sales Returns - The Company's recently announced retroactive change to accrue
for estimated sales returns impacts diluted earnings per share (EPS) for the
first three quarters of fiscal 1999 and all four quarters of fiscal 1998 as
follows:
o A $0.01 shift in quarterly diluted earnings per share primarily from the
first to the fourth fiscal quarter.
o No change in annual diluted earnings per share for fiscal 1998 (or any of
the last four fiscal years ended January 30, 1999).
o No change expected in annual diluted earnings per share for the fiscal
year ended January 29, 2000.
The following table details this restatement of reported diluted earnings per
share for fiscal 1999 and 1998:
<TABLE>
<CAPTION>
- ----------------- -------------- --------------- -------------- --------------- -------------- --------------
Fiscal Year Q1 Q2 Q3 Q4
- ----------------- -------------- --------------- -------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Fiscal 1999 As Reported * $0.23 $0.29 $0.05 *
- ----------------- -------------- --------------- -------------- --------------- -------------- --------------
As Restated N/A $0.22 $0.29 $0.05 N/A
- ----------------- -------------- --------------- -------------- --------------- -------------- --------------
Change ($0.01) - -
- ----------------- -------------- --------------- -------------- --------------- -------------- --------------
Fiscal 1998 As Reported $0.81 $0.22 $0.25 $0.10 $0.24
- ----------------- -------------- --------------- -------------- --------------- -------------- --------------
As Restated $0.81 $0.21 $0.25 $0.09 $0.25
- ----------------- -------------- --------------- -------------- --------------- -------------- --------------
Change - ($0.01) - ($0.01) $0.01
- ----------------- -------------- --------------- -------------- --------------- -------------- --------------
</TABLE>
"*" Not yet reported.
"N/A" Not Applicable.
Other Changes - The recently announced retroactive change in reporting results
of leased departments has no effect on gross profit, net earnings, or diluted
earnings per share.
The recently announced change in accounting for layaways will be adopted
prospectively in the first quarter of fiscal 2000. Accordingly, no prior period
results are affected by this anticipated change.
<PAGE>
EXHIBIT 99.2
Goody's Family Clothing, Inc.
Restated Statements of Operations Information
Basis of Presentation
The accompanying unaudited restated statements of operations information of
Goody's Family Clothing, Inc. includes unaudited statements of operations for
the following periods: o The first three fiscal quarters of the year ended
January 29, 2000; and o Each of the four fiscal quarters and the full year ended
January 30, 1999.
The unaudited restated statements of operations information gives effect to the
Company's restatement of its previously issued unaudited quarterly statements of
operations as a result of changes in accounting for sales returns and leased
departments, as announced by the Company on March 2, 2000.
Management believes the assumptions used for the restatement adjustments provide
a reasonable basis on which to present the unaudited restated statements of
operations information. The accompanying unaudited restated statements of
operations information is historical information and should not be construed to
be indicative of the Company's results of operations for any future date or
period.
The Company does not intend to file amended Form 10-Q's for these restatements.
Rather, (i) quarterly information for each of the quarters of fiscal 1998 and
1999 contained in the Company's annual report on Form 10-K for the year ended
January 29, 2000 and (ii) quarterly financial statements for fiscal 1999 to be
contained in each of the Company's Form 10-Q's during fiscal 2000 will be
restated for these matters. Accordingly, the independent accountants' review
reports included in all of the Company's Form 10-Q's filed during fiscal 1999
should not be relied upon. The Company expects to include the Company's
independent accountants' review reports covering the applicable fiscal 2000 and
prior year comparable period financial statements when it files its Form 10-Q's
for fiscal 2000.
The unaudited restated statements of operations information should generally be
read in conjunction with the Company's historical financial statements and notes
thereto contained in the Company's quarterly reports on Form 10-Q (for all
fiscal 1998 and 1999 quarterly periods) and annual report of Form 10-K for the
year ended January 30, 1999.
Columnar Description - Restatement Adjustments
This column represents adjustments made to the Company's historical quarterly
and full year statements of operations as a result of retroactive changes in
accounting methodology for sales returns and leased departments, as announced by
the Company on March 2, 2000, as follows:
o Historically, the Company had recognized sales returns upon return of the
related merchandise by the customer as such amounts were not material to
the Company's operations or financial position. The Company now provides
for an estimate of sales returns in the month of the initial sale.
o The Company's previously reported sales and cost of sales included its
sales and cost of sales of leased departments. The Company now includes in
its historical financial statements the net rental income (sales less cost
of sales) of leased departments in its reported sales. The Company
discontinued operating leased departments in fiscal 1999.
<PAGE>
Goody's Family Clothing, Inc.
Restated Statement of Operations Information
Thirteen Weeks Ended October 30, 1999
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
As Previously % of Restatement As % of
Reported Sales Adjustments Restated Sales
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sales $ 268,078 100.0% $ (286) $ 267,792 100.0%
Cost of sales and occupancy expenses 72.3% 72.3%
193,765 (131) 193,634
------------------------------------------------------------------------------
Gross profit 27.7% 27.7%
74,313 (155) 74,158
Selling, general and administrative
expenses 26.9% 27.0%
72,283 72,283
------------------------------------------------------------------------------
Earnings from operations 0.8% 0.7%
2,030 (155) 1,875
Interest expense 0.0% 0.0%
51 51
Investment income 0.2% 0.2%
686 686
------------------------------------------------------------------------------
Earnings before income taxes 1.0% 0.9%
2,665 (155) 2,510
Provision for income taxes 0.4% 0.3%
999 (58) 941
------------------------------------------------------------------------------
Net earnings $ 1,666 0.6% $ (97) $ 1,569 0.6%
==============================================================================
Earnings per common share
Basic $ 0.05 $ 0.05
================== =============
Diluted $ 0.05 $ 0.05
================== =============
Weighted average common
shares outstanding
Basic 33,168 33,168
================== =============
Diluted 33,611 33,611
================== =============
</TABLE>
<PAGE>
Goody's Family Clothing, Inc.
Restated Statement of Operations Information
Thirteen Weeks Ended July 31, 1999
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
As Previously % of Restatement As % of
Reported Sales Adjustments Restated Sales
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sales $ 277,260 100.0% $ (5,798) $ 271,462 100.0%
Cost of sales and occupancy expenses 70.6% 189,725 69.9%
195,790 (6,065)
------------------------------------------------------------------------------
Gross profit 29.4% 81,737 30.1%
81,470 267
Selling, general and administrative
expenses 24.0% 66,545 24.5%
66,545
------------------------------------------------------------------------------
Earnings from operations 5.4% 15,192 5.6%
14,925 267
Interest expense 0.0% 53 0.0%
53
Investment income 0.2% 699 0.2%
699
------------------------------------------------------------------------------
Earnings before income taxes 5.6% 15,838 5.8%
15,571 267
Provision for income taxes 2.1% 5,965 2.2%
5,864 101
------------------------------------------------------------------------------
Net earnings $ 9,707 3.5% $ 166 $ 9,873 3.6%
==============================================================================
Earnings per common share
Basic $ 0.29 $ 0.30
================== =============
Diluted $ 0.29 $ 0.29
================== =============
Weighted average common
shares outstanding
Basic 33,318 33,318
================== =============
Diluted 33,900 33,900
================== =============
</TABLE>
<PAGE>
Goody's Family Clothing, Inc.
Restated Statement of Operations Information
Thirteen Weeks Ended May 1, 1999
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
As Previously % of Restatement As % of
Reported Sales Adjustments Restated Sales
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sales $ 259,931 100.0% $ (9,182) $ 250,749 100.0%
Cost of sales and occupancy expenses 71.5% 177,278 70.7%
185,730 (8,452)
------------------------------------------------------------------------------
Gross profit 28.5% 73,471 29.3%
74,201 (730)
Selling, general and administrative
expenses 23.9% 62,154 24.8%
62,154
------------------------------------------------------------------------------
Earnings from operations 4.6% 11,317 4.5%
12,047 (730)
Interest expense 0.0% 53 0.0%
53
Investment income 0.2% 578 0.2%
578
------------------------------------------------------------------------------
Earnings before income taxes 4.8% 11,842 4.7%
12,572 (730)
Provision for income taxes 1.8% 4,417 1.7%
4,689 (272)
------------------------------------------------------------------------------
Net earnings $ 7,883 3.0% $ (458) $ 7,425 3.0%
==============================================================================
Earnings per common share
Basic $ 0.24 $ 0.22
================== =============
Diluted $ 0.23 $ 0.22
================== =============
Weighted average common
shares outstanding
Basic 33,333 33,333
================== =============
Diluted 33,918 33,918
================== =============
</TABLE>
<PAGE>
Goody's Family Clothing, Inc.
Restated Statement of Operations Information
Thirteen Weeks Ended January 30, 1999
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
As Previously % of Restatement As % of
Reported Sales Adjustments Restated Sales
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sales $ 363,546 100.0% $ (9,247) $ 354,299 100.0%
Cost of sales and occupancy expenses 77.0% 270,013 76.2%
279,861 (9,848)
------------------------------------------------------------------------------
Gross profit 23.0% 84,286 23.8%
83,685 601
Selling, general and administrative
expenses 19.7% 71,683 20.2%
71,683
------------------------------------------------------------------------------
Earnings from operations 3.3% 12,603 3.6%
12,002 601
Interest expense 0.0% 255 0.1%
255
Investment income 0.2% 826 0.2%
826
------------------------------------------------------------------------------
Earnings before income taxes 3.5% 13,174 3.7%
12,573 601
Provision for income taxes 1.3% 4,805 1.3%
4,579 226
------------------------------------------------------------------------------
Net earnings $ 7,994 2.2% $ 375 $ 8,369 2.4%
==============================================================================
Earnings per common share
Basic $ 0.24 $ 0.25
================== =============
Diluted $ 0.24 $ 0.25
================== =============
Weighted average common
shares outstanding
Basic 33,331 33,331
================== =============
Diluted 33,895 33,895
================== =============
</TABLE>
<PAGE>
Goody's Family Clothing, Inc.
Restated Statement of Operations Information
Thirteen Weeks Ended October 31, 1998
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
As Previously % of Restatement As % of
Reported Sales Adjustments Restated Sales
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sales $ 251,335 100.0% $ (8,604) $ 242,731 100.0%
Cost of sales and occupancy expenses 74.3% 178,378 73.5%
186,789 (8,411)
------------------------------------------------------------------------------
Gross profit 25.7% 64,353 26.5%
64,546 (193)
Selling, general and administrative
expenses 23.7% 59,614 24.6%
59,614
------------------------------------------------------------------------------
Earnings from operations 2.0% 4,739 1.9%
4,932 (193)
Interest expense 0.1% 99 0.0%
99
Investment income 0.2% 407 0.2%
407
------------------------------------------------------------------------------
Earnings before income taxes 2.1% 5,047 2.1%
5,240 (193)
Provision for income taxes 0.8% 1,900 0.8%
1,973 (73)
------------------------------------------------------------------------------
Net earnings $ 3,267 1.3% $ (120) $ 3,147 1.3%
==============================================================================
Earnings per common share
Basic $ 0.10 $ 0.09
================== =============
Diluted $ 0.10 $ 0.09
================== =============
Weighted average common
shares outstanding
Basic 33,328 33,328
================== =============
Diluted 34,322 34,322
================== =============
</TABLE>
<PAGE>
Goody's Family Clothing, Inc.
Restated Statement of Operations Information
Thirteen Weeks Ended August 1, 1998
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
As Previously % of Restatement As % of
Reported Sales Adjustments Restated Sales
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sales $ 249,489 100.0% $ (8,092) $ 241,397 100.0%
Cost of sales and occupancy expenses 71.5% 170,090 70.5%
178,345 (8,255)
------------------------------------------------------------------------------
Gross profit 28.5% 71,307 29.5%
71,144 163
Selling, general and administrative
expenses 23.1% 57,632 23.9%
57,632
------------------------------------------------------------------------------
Earnings from operations 5.4% 13,675 5.6%
13,512 163
Interest expense 0.0% 87 0.0%
87
Investment income 0.2% 462 0.2%
462
------------------------------------------------------------------------------
Earnings before income taxes 5.6% 14,050 5.8%
13,887 163
Provision for income taxes 2.1% 5,291 2.2%
5,229 62
-----------------------------------------------------------------------------
Net earnings $ 8,658 3.5% $ 101 $ 8,759 3.6%
==============================================================================
Earnings per common share
Basic $ 0.26 $ 0.26
================== =============
Diluted $ 0.25 $ 0.25
================== =============
Weighted average common
shares outstanding
Basic 33,538 33,538
================== =============
Diluted 34,989 34,989
================== =============
</TABLE>
<PAGE>
Goody's Family Clothing, Inc.
Restated Statement of Operations Information
Thirteen Weeks Ended May 2, 1998
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
As Previously % of Restatement As % of
Reported Sales Adjustments Restated Sales
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sales $ 226,714 100.0% $ (8,126) $ 218,588 100.0%
Cost of sales and occupancy expenses 70.0% 151,239 69.2%
158,794 (7,555)
------------------------------------------------------------------------------
Gross profit 30.0% 67,349 30.8%
67,920 (571)
Selling, general and administrative
expenses 24.7% 55,904 25.6%
55,904
------------------------------------------------------------------------------
Earnings from operations 5.3% 11,445 5.2%
12,016 (571)
Interest expense 0.0% 94 0.0%
94
Investment income 0.2% 536 0.2%
536
------------------------------------------------------------------------------
Earnings before income taxes 5.5% 11,887 5.4%
12,458 (571)
Provision for income taxes 2.1% 4,475 2.0%
4,690 (215)
-----------------------------------------------------------------------------
Net earnings $ 7,768 3.4% $ (356) $ 7,412 3.4%
==============================================================================
Earnings per common share
Basic $ 0.23 $ 0.22
================== =============
Diluted $ 0.22 $ 0.21
================== =============
Weighted average common
shares outstanding
Basic 33,164 33,164
================== =============
Diluted 34,618 34,618
================== =============
</TABLE>
<PAGE>
Goody's Family Clothing, Inc.
Restated Statement of Operations Information
Fifty Two Weeks Ended January 30, 1999
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
As Previously % of Restatement As % of
Reported Sales Adjustments Restated Sales
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sales $ 1,091,084 100.0% $ (34,069) $ 100.0%
1,057,015
Cost of sales and occupancy expenses 73.7% 72.8%
803,789 (34,069) 769,720
------------------------------------------------------------------------------
Gross profit 26.3% 27.2%
287,295 - 287,295
Selling, general and administrative
expenses 22.4% 23.2%
244,833 244,833
------------------------------------------------------------------------------
Earnings from operations 3.9% 4.0%
42,462 - 42,462
Interest expense 0.1% 0.0%
535 535
Investment income 0.2% 0.2%
2,231 2,231
------------------------------------------------------------------------------
Earnings before income taxes 4.0% 4.2%
44,158 - 44,158
Provision for income taxes 1.5% 1.6%
16,471 - 16,471
-----------------------------------------------------------------------------
Net earnings $ 27,687 2.5% $ - $ 27,687 2.6%
==============================================================================
Earnings per common share
Basic $ 0.84 $ 0.84
================== =============
Diluted $ 0.81 $ 0.81
================== =============
Weighted average common
shares outstanding
Basic 33,155 33,155
================== =============
Diluted 34,267 34,267
================== =============
</TABLE>
<PAGE>
EXHIBIT 99.3
Goody's Family Clothing, Inc.
Restated Fiscal Monthly Sales for Fiscal 1999
Basis of Presentation
The table below, which is provided for informational purposes only, sets
forth the Company's restated fiscal monthly sales (in thousands) for fiscal 1999
as a result of the following retroactive changes in accounting methodology for
sales returns and leased departments, as announced by the Company on March 2,
2000:
o Historically, the Company had recognized sales returns upon return of the
related merchandise by the customer as such amounts were not material to
the Company's operations or financial position. The Company now provides
for an estimate of sales returns in the month of the initial sale.
o The Company's previously reported sales and cost of sales included its
sales and cost of sales of leased departments. The Company now includes in
its historical financial statements the net rental income (sales less cost
of sales) of leased departments in its reported sales. The Company
discontinued operating leased departments in fiscal 1999.
<TABLE>
<CAPTION>
As Previously
Fiscal Month Reported As Restated
-----------------------------------------------------------------------
<S> <C> <C>
February 1999 $ 62,117 $ 60,273
March 1999 111,770 106,121
April 1999 86,044 84,355
-----------------------------------
First Quarter 1999 259,931 250,749
-----------------------------------
May 1999 89,756 87,321
June 1999 108,018 106,279
July 1999 79,486 77,862
-----------------------------------
Second Quarter 1999 277,260 271,462
-----------------------------------
August 1999 90,383 90,734
September 1999 95,132 94,496
October 1999 82,563 82,562
-----------------------------------
Third Quarter 1999 268,078 267,792
-----------------------------------
November 1999 119,772 118,840
December 1999 209,177 207,773
January 2000 61,590 64,314
-----------------------------------
Fourth Quarter 1999 390,539 390,927
-----------------------------------
Fiscal Year 1999 $ 1,195,808 $ 1,180,930
===================================
</TABLE>
