SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended Commission file number
July 4, 1998 0-20052
STEIN MART, INC.
(Exact name of registrant as specified in its charter)
Florida 64-0466198
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1200 Riverplace Blvd., Jacksonville, Florida 32207
(Address of principal executive offices) (Zip Code)
(904) 346-1500
(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
--- ---
At August 10, 1998, the latest practicable date, there were 45,685,586 shares
outstanding of Common Stock, $.01 par value.
<PAGE>
STEIN MART, INC.
INDEX TO FORM 10-Q
PAGE
----
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements:
Balance Sheets at July 4, 1998, January 3,
1998 and June 28, 1997 3
Statement of Income for the three months and six
months ended July 4, 1998 and June 28, 1997 4
Statement of Cash Flows for the six months ended
July 4, 1998 and June 28, 1997 5
Notes to Financial Statements 6-7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8-11
PART II - OTHER INFORMATION 12
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES 13
2
<PAGE>
<TABLE>
STEIN MART, INC.
BALANCE SHEET
(In Thousands)
<CAPTION>
JULY 4, JANUARY 3, JUNE 28,
1998 1998 1997
------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 6,675 $ 27,979 $ 8,089
Trade and other receivables 3,551 2,518 2,097
Inventories 202,323 175,620 162,309
Prepaid expenses and other current assets 2,614 2,170 2,777
------------ ------------ ------------
Total current assets 215,163 208,287 175,272
Property and equipment, net 65,685 61,087 57,044
Other assets 4,010 1,230 1,353
------------ ------------ ------------
Total assets $ 284,858 $ 270,604 $233,669
============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 44,949 $ 65,013 $ 39,500
Accrued liabilities 18,664 21,527 17,569
Income taxes payable 4,198 11,451 3,237
------------ ------------ ------------
Total current liabilities 67,811 97,991 60,306
Notes payable to bank 40,870 - 20,447
Deferred income taxes 6,810 6,810 5,812
------------ ------------ ------------
Total liabilities 115,491 104,801 86,565
Stockholders' equity:
Preferred stock - $.01 par value; 1,000,000 shares
authorized; no shares outstanding
Common stock - $.01 par value; 100,000,000 shares
authorized; 45,694,238 shares issued and
outstanding at July 4, 1998; 46,010,708 shares
issued and outstanding at January 3, 1998 and
46,235,254 shares issued and outstanding at June 28, 1997 457 460 462
Paid-in capital 33,883 39,565 44,553
Retained earnings 135,027 125,778 102,089
------------ ------------ ------------
Total stockholders' equity 169,367 165,803 147,104
------------ ------------ ------------
Total liabilities and stockholders' equity $ 284,858 $ 270,604 $ 233,669
============ ============ ============
The accompanying notes are an integral part of these financial statements.
</TABLE>
3
<PAGE>
<TABLE>
STEIN MART, INC.
STATEMENT OF INCOME
(Unaudited)
(In Thousands Except Per Share Amounts)
<CAPTION>
FOR THE FOR THE
THREE MONTHS ENDED SIX MONTHS ENDED
---------------------------- ----------------------------
JULY 4, JUNE 28, JULY 4, JUNE 28,
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net sales $ 213,967 $ 183,604 $ 383,449 $ 334,991
Cost of merchandise sold 154,698 130,810 284,282 246,643
---------- ---------- ---------- ----------
Gross profit 59,269 52,794 99,167 88,348
Selling, general and administrative expenses 46,925 38,961 88,421 74,014
Other income, net 2,803 2,310 5,005 4,225
---------- ---------- ---------- ----------
Income from operations 15,147 16,143 15,751 18,559
Interest expense 525 269 833 398
---------- ---------- ---------- ----------
Income before income taxes 14,622 15,874 14,918 18,161
Provision for income taxes 5,556 6,191 5,669 7,083
---------- ---------- ---------- ----------
Net income $ 9,066 $ 9,683 $ 9,249 $ 11,078
========== ========== ========== ==========
Earnings per share:
Basic $ 0.20 $ 0.21 $ 0.20 $ 0.24
========== ========== ========== ==========
Diluted $ 0.19 $ 0.20 $ 0.20 $ 0.23
========== ========== ========== ==========
Weighted average shares outstanding:
Basic 46,105 46,235 46,037 45,975
========== ========== ========== ==========
Diluted 47,059 47,462 47,040 47,198
========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
4
<PAGE>
<TABLE>
STEIN MART, INC.
STATEMENT OF CASH FLOWS
(Unaudited)
(In Thousands)
<CAPTION>
FOR THE
SIX MONTHS ENDED
----------------------------------
JULY 4, JUNE 28,
1998 1997
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 9,249 $ 11,078
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization 5,005 4,165
(Increase) decrease in:
Trade and other receivables (1,033) 194
Inventories (26,703) (23,129)
Prepaid expenses and other current assets (444) (903)
Other assets (2,780) (136)
Increase (decrease) in:
Accounts payable (20,064) (19,676)
Accrued liabilities (2,863) 382
Income taxes payable (7,253) (708)
------------ ------------
Net cash used in operating activities (46,886) (28,733)
Cash flows used in investing activities:
Net acquisition of property and equipment (9,603) (11,058)
Cash flows from financing activities:
Net borrowings under notes payable to bank 40,870 20,446
Proceeds from exercise of stock options and
related income tax benefits 3,306 6,683
Proceeds from employee stock purchase plan 512 -
Purchase of common stock (9,503) (2,800)
------------ ------------
Net cash provided by financing activities 35,185 24,329
------------ ------------
Net decrease in cash and cash equivalents (21,304) (15,462)
Cash and cash equivalents at beginning of year 27,979 23,551
------------ ------------
Cash and cash equivalents at end of period $ 6,675 $ 8,089
============ ============
Supplemental disclosures of cash flow information:
Interest paid $ 1,298 $ 554
Income taxes paid 11,465 5,759
The accompanying notes are an integral part of these financial statements.
</TABLE>
5
<PAGE>
STEIN MART, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the three month and
six month periods are not necessarily indicative of the results that may be
expected for the entire year. For further information, refer to the financial
statements and footnotes thereto included in the Stein Mart, Inc. annual report
on Form 10-K for the year ended January 3, 1998.
2. ACCOUNTING CHANGE
The Company adopted AICPA Statement of Position 98-5, Reporting on the Costs of
Start-Up Activities ("SOP 98-5"), effective January 4, 1998. SOP 98-5, issued
April 1998, requires that costs of start-up activities be expensed as incurred.
The Company previously capitalized store pre-opening expenses and amortized such
amounts over the balance of the fiscal year. The after-tax effect of this
accounting change was to decrease earnings for the three and six months ended
July 4, 1998 by $347,000 or $0.01 diluted earnings per share and $873,000 or
$0.02 diluted earnings per share, respectively.
3. STOCK SPLIT
On April 24, 1998, the Board of Directors authorized a two-for-one stock split
that was distributed in the form of a stock dividend on May 22, 1998 to
shareholders of record as of May 8, 1998. In this report, all references to
number of shares and per share amounts have been restated. In addition,
stockholders' equity has been restated to give retroactive recognition to the
stock split in prior periods by reclassifying from paid-in capital to common
stock the $.01 par value of the additional shares arising from the split.
4. EARNINGS PER SHARE
The Company adopted Statement of Financial Accounting Standards No. 128,
"Earnings Per Share" in the fourth quarter of 1997. Accordingly, in addition to
the restatement for the stock split, the Company has also restated all periods
presented in these financial statements to reflect "basic" and "diluted"
earnings per share. Basic earnings per share is computed by dividing net income
by the weighted average number of common shares outstanding for the period.
Diluted earnings per share is computed by dividing net income by the weighted
average number of common shares outstanding plus common stock equivalents
related to stock options for each period.
6
<PAGE>
STEIN MART, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
A reconciliation of weighted average number of common shares to weighted average
number of common shares plus common stock equivalents is as follows (000's):
<TABLE>
<CAPTION>
For The For The
Three Months Ended Six Months Ended
------------------------------- -------------------------------
July 4, June 28, July 4, June 28,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Weighted average number
of common shares 46,105 46,235 46,037 45,975
Stock options 954 1,227 1,003 1,223
------------ ------------ ------------ ------------
Weighted average number of
common shares plus common
stock equivalents 47,059 47,462 47,040 47,198
============ ============ ============ ============
</TABLE>
5. COMMON STOCK REPURCHASE
During the six months ended July 4, 1998, the Company repurchased 786,000 shares
for $9.5 million and during the six months ended June 28, 1997, the Company
repurchased 212,000 shares for $2.8 million. As of August 17, 1998, the Company
had repurchased an additional 60,000 shares of its common stock in the open
market at a total cost of $0.6 million.
7
<PAGE>
STEIN MART, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This report includes a number of forward-looking statements which reflect the
Company's current views with respect to future events and financial performance.
Wherever used, the words "plan", "expect", "anticipate", "believe", "estimate"
and similar expressions identify forward looking statements.
Any such forward-looking statements contained herein are subject to risks and
uncertainties that could cause the Company's actual results of operations to
differ materially from historical results or current expectations. These risks
include, without limitation, ongoing competition from other retailers many of
whom are larger and have greater financial and marketing resources, the
availability of suitable new store sites at acceptable lease terms, changes in
the level of consumer spending or preferences in apparel, adequate sources of
designer and brand-name merchandise at acceptable prices, and the Company's
ability to attract and retain qualified employees to support planned growth.
The Company does not undertake to publicly update or revise its forward-looking
statements even if experience or future changes make clear that any projected
results expressed or implied therein will not be realized.
RESULTS OF OPERATIONS
The information in the following table is presented as a percentage of net sales
for the periods indicated:
<TABLE>
<CAPTION>
QUARTER ENDED SIX MONTHS ENDED
-------------------------------- ---------------------------------
7/4/98 6/28/97 7/4/98 6/28/97
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of merchandise sold 72.3 71.2 74.1 73.6
-------------- ------------ ------------- --------------
Gross profit 27.7 28.8 25.9 26.4
Selling, general and administrative expenses 21.9 21.2 23.1 22.1
Other income, net 1.3 1.2 1.3 1.2
-------------- ------------ ------------- --------------
Income from operations 7.1 8.8 4.1 5.5
Interest expense 0.3 0.2 0.2 0.1
-------------- ------------ ------------- --------------
Income before income taxes 6.8 8.6 3.9 5.4
Provision for income taxes 2.6 3.3 1.5 2.1
-------------- ------------ ------------- --------------
Net income 4.2% 5.3% 2.4% 3.3%
============== ============ ============= ==============
</TABLE>
In this report, all references to number of shares and per share amounts have
been restated for the two-for-one stock split described in Note 3 to Financial
Statements.
8
<PAGE>
STEIN MART, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JULY 4, 1998 COMPARED WITH THE THREE MONTHS ENDED
JUNE 28, 1997:
Ten stores were opened during the second quarter this year, bringing to 165 the
number of stores in operation this year compared to 136 stores in operation at
the end of the second quarter of 1997.
Net sales for the quarter ended July 4, 1998 were $214.0 million, a 16.5 percent
increase over the $183.6 million for the second quarter of 1997. Comparable
store net sales increased 3.6 percent from the second quarter of 1997.
Gross profit for the quarter ended July 4, 1998 increased to $59.3 million, a
12.3 percent increase over the $52.8 million for the second quarter of 1997.
Gross profit as a percent of net sales decreased 1.1 percent to 27.7 percent for
the second quarter this year from 28.8 percent for the second quarter last year.
This decrease resulted primarily from increases in markdowns and occupancy costs
as a percent of net sales resulting from lower per store sales productivity,
offset by a slight improvement in markup.
For the quarter ended July 4, 1998 selling, general and administrative expenses
were $46.9 million, or 21.9 percent of net sales, compared to $39.0 million, or
21.2 percent of net sales for the same 1997 quarter. The $7.9 million increase
in selling, general and administrative expenses is primarily due to the
additional stores in operation during the second quarter of 1998 as compared to
the number of stores in operation during the second quarter of 1997. The
adoption of SOP 98-5, discussed in Note 2 to Financial Statements, resulted in
an increase to selling, general and administrative expenses as a percent of net
sales of 0.2 percent over the second quarter of 1997. The remaining increase of
0.5 percent of net sales is primarily due to increased advertising expenses as a
percent of net sales resulting from lower per store sales productivity.
Other income, primarily from in-store leased shoe departments, increased to $2.8
million for the second quarter of 1998 compared to $2.3 million for the second
quarter of 1997. The increase resulted from the additional stores operated
during the quarter this year.
Interest expense was $525,000 for the second quarter of 1998 and $269,000 for
the second quarter of 1997. The $256,000 increase in interest expense resulted
from higher average borrowings offset by slightly lower interest rates during
the second quarter this year compared to last year.
Net income for the second quarter of 1998 was $9.1 million or $0.19 diluted
earnings per share compared to net income of $9.7 million or $0.20 diluted
earnings per share for the second quarter of 1997. The effect on net income of
the adoption of SOP 98-5 was to decrease earnings for the second quarter of 1998
by $347,000 or $0.01 diluted earnings per share.
9
<PAGE>
STEIN MART, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JULY 4, 1998 COMPARED WITH THE SIX MONTHS ENDED JUNE
28, 1997:
Fourteen stores were opened during the first six months of 1998 and thirteen
stores were opened during the first six months of 1997.
Net sales for the first six months of 1998 were $383.4 million, a 14.5 percent
increase over sales of $335.0 million for the first six months of 1997.
Comparable store net sales for the first six months of 1998 increased by 1.6
percent from the first six months of 1997.
Gross profit for the first six months of 1998 was $99.2 million or 25.9 percent
of net sales compared to $88.3 million or 26.4 percent of net sales for the same
six month period of 1997. The 0.5 percent decrease in the gross profit percent
resulted primarily from increases in occupancy costs as a percent of net sales
resulting from lower per store sales productivity.
Selling, general and administrative expenses were $88.4 million or 23.1 percent
of net sales for the first six months of 1998 and $74.0 million or 22.1 percent
for the first six months of 1997. The $14.4 million increase in selling, general
and administrative expenses is primarily due to the additional stores in
operation during the first six months of 1998 as compared to the number of
stores in operation during the first six months of 1997. The adoption of SOP
98-5, discussed in Note 2 to Financial Statements, resulted in an increase to
selling, general and administrative expenses as a percent of net sales of 0.3
percent over the first six months of 1997. The remaining increase of 0.7 percent
of net sales is primarily due to increased selling and advertising expenses as a
percent of net sales resulting from lower per store sales productivity.
Other income, primarily from in-store leased shoe departments, increased to $5.0
million for the first half of 1998 compared to $4.2 million for the first half
of 1997. The increase resulted primarily from the additional stores operated
during the first six months this year.
Interest expense was $833,000 for the first half of 1998 and $398,000 for the
first half of 1997. The $435,000 increase in interest expense resulted from
higher average borrowings offset by slightly lower interest rates during the
first half of 1998 compared to last year. The increased borrowings were used to
fund operating activities and to repurchase common stock.
Net income for the first six months of 1998 was $9.2 million or $0.20 diluted
earnings per share compared to net income of $11.1 million or $0.23 diluted
earnings per share for the first six months of 1997. The effect on net income of
the adoption of SOP 98-5 was to decrease earnings for the first six months of
1998 by $873,000 or $0.02 diluted earnings per share.
10
<PAGE>
STEIN MART, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Net cash used in operating activities was $46.9 million and $28.7 million for
the first six months of 1998 and 1997, respectively. During the first half of
both years inventory levels were increased to provide inventory for the
additional stores in operation. Cash was also used in the first six months of
1998 and 1997 to reduce liabilities by $30.2 million and $20.0 million,
respectively. Based on historical cash flow results, operating activities are
expected to produce positive cash flow for the year ending January 2, 1999.
During the first six months of 1998 and 1997, cash flow used in investing
activities was $9.6 million and $11.1 million, respectively, primarily for
acquisition of fixtures, equipment, and leasehold improvements for new stores
and information system enhancements. Total capital expenditures for 1998 are
projected to be approximately $22.0 million.
Cash flow from financing activities was $35.2 million for the first six months
of 1998 and $24.3 million for the first six months of 1997 which reflected in
both periods net borrowing under the Company's revolving credit agreement to
meet seasonal working capital requirements. This year's first half includes $3.3
million of proceeds from the exercise of stock options and related income tax
benefits compared to $6.7 million in last year's first half. This years first
half also includes $0.5 million of proceeds from the employee stock purchase
plan. During the first half of 1998, cash was used to repurchase 786,000 shares
of the Company's common stock for $9.5 million and in last year's first half
212,000 shares were repurchased for $2.8 million.
The Company believes that cash flow generated from operating activities, bank
borrowings and vendor credit will be sufficient to fund current and long-term
capital expenditures and working capital requirements.
SEASONALITY AND INFLATION
The Company's business is seasonal in nature with the fourth quarter, which
includes the Christmas selling season, historically accounting for the largest
percentage of the Company's net sales and operating income. Accordingly,
selling, general and administrative expenses are typically higher as a
percentage of net sales during the first three quarters of each year.
Inflation affects the costs incurred by the Company in the purchase of
merchandise, the leasing of its stores, and in certain components of its
selling, general and administrative expenses. The Company has been successful in
offsetting the effects of inflation through the control of expenses during the
past three years. However, there can be no assurance that inflation will not
have a material effect in the future.
11
<PAGE>
STEIN MART, INC.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders
The company held its 1998 annual meeting of stockholders on May 18,
1998. At the meeting all of the Company's directors were elected to
serve for one-year terms. The vote for each nominee for director
was as follows:
Votes
Name of Director Votes For Withheld
---------------- ----------- --------
Jay Stein 20,942,445 13,240
John H. Williams, Jr. 20,942,455 13,230
Pete Carpenter 20,940,770 14,915
Albert Ernest, Jr. 20,942,405 13,280
Mitchell W. Legler 20,888,424 67,261
Michael D. Rose 20,941,027 14,658
James H. Winston 20,942,155 13,530
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27 - Financial Data Schedules:
Exhibit 27.1 - Financial Data Schedule for 2nd quarter 10-Q
Exhibit 27.2 - Restated Financial Data Schedules for 1997
quarters
Exhibit 27.3 - Restated Financial Data Schedules for 1996
(b) No reports on Form 8-K were filed during the quarter ended
July 4, 1998.
12
<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 thereunto duly authorized.
Stein Mart, Inc.
Date: August 17, 1998 /s/ John H. Williams, Jr.
------------------------------------
John H. Williams, Jr.
President, Chief Operating Officer
/s/ James G. Delfs
------------------------------------
James G. Delfs
Senior Vice President,
Chief Financial Officer
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
condensed consolidated balance sheet and condensed consolidated
statement of income found on the Company's Form 10-Q for the six months
ended July 4, 1998 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-2-1999
<PERIOD-START> JAN-4-1998
<PERIOD-END> JUL-4-1998
<CASH> 6675
<SECURITIES> 0
<RECEIVABLES> 4725
<ALLOWANCES> 1174
<INVENTORY> 202323
<CURRENT-ASSETS> 215163
<PP&E> 108595
<DEPRECIATION> 42910
<TOTAL-ASSETS> 284858
<CURRENT-LIABILITIES> 67811
<BONDS> 0
0
0
<COMMON> 457
<OTHER-SE> 168910
<TOTAL-LIABILITY-AND-EQUITY> 284858
<SALES> 383449
<TOTAL-REVENUES> 388454
<CGS> 284282
<TOTAL-COSTS> 372703
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 833
<INCOME-PRETAX> 14918
<INCOME-TAX> 5669
<INCOME-CONTINUING> 9249
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9249
<EPS-PRIMARY> 0.20
<EPS-DILUTED> 0.20
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains restated summary financial information extracted from the
condensed consolidated balance sheets and condensed consolidated
statements of income found on the Company's Forms 10-Q for the three months
ended March 29, 1997, June 28, 1997 and September 27, 1997 and is qualified
in its entirety by reference to such financial statements. Equity and EPS have
been restated to reflect adoption of SFAS 128 during the fourth quarter of 1997
and a stock split which occurred May 1998.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS
<FISCAL-YEAR-END> JAN-3-1998 JAN-3-1998 JAN-3-1998
<PERIOD-START> DEC-29-1996 DEC-29-1996 DEC-29-1996
<PERIOD-END> MAR-29-1997 JUN-28-1997 SEP-27-1997
<CASH> 13675 8089 15040
<SECURITIES> 0 0 0
<RECEIVABLES> 2522 2097 2606
<ALLOWANCES> 602 0 0
<INVENTORY> 163025 162309 194033
<CURRENT-ASSETS> 181604 175272 214578
<PP&E> 86201 90443 96279
<DEPRECIATION> 31282 33399 35609
<TOTAL-ASSETS> 237950 233669 276556
<CURRENT-LIABILITIES> 82251 60306 93663
<BONDS> 0 0 0
0 0 0
0 0 0
<COMMON> 460 462 464
<OTHER-SE> 135193 146642 150676
<TOTAL-LIABILITY-AND-EQUITY> 237950 233669 276556
<SALES> 151387 334991 501725
<TOTAL-REVENUES> 153302 339216 508200
<CGS> 115833 246643 373375
<TOTAL-COSTS> 150886 320657 484303
<OTHER-EXPENSES> 0 0 0
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 129 398 752
<INCOME-PRETAX> 2287 18161 23145
<INCOME-TAX> 892 7083 9027
<INCOME-CONTINUING> 1395 11078 14118
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 1395 11078 14118
<EPS-PRIMARY> 0.03 0.24 0.31
<EPS-DILUTED> 0.03 0.23 0.30
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains restated summary financial information extracted from
the statements of income and balance sheets for the year ended and is qualified
in its entirety by reference to such financial statements. Equity and EPS have
been restated to reflect adoption of SFAS 128 during the fourth quarter of 1997
and a stock split which occurred May 1998.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-28-1996
<PERIOD-START> DEC-31-1995
<PERIOD-END> DEC-28-1996
<CASH> 23551
<SECURITIES> 0
<RECEIVABLES> 2863
<ALLOWANCES> 572
<INVENTORY> 139180
<CURRENT-ASSETS> 166896
<PP&E> 79482
<DEPRECIATION> 29331
<TOTAL-ASSETS> 218264
<CURRENT-LIABILITIES> 80308
<BONDS> 0
0
0
<COMMON> 456
<OTHER-SE> 131687
<TOTAL-LIABILITY-AND-EQUITY> 218264
<SALES> 616150
<TOTAL-REVENUES> 623774
<CGS> 451232
<TOTAL-COSTS> 579659
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1567
<INCOME-PRETAX> 42548
<INCOME-TAX> 16594
<INCOME-CONTINUING> 25954
<DISCONTINUED> 0
<EXTRAORDINARY> 0
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<NET-INCOME> 25954
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</TABLE>
