<PAGE> 1
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 29, 1999 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 0-6708
Nautica Enterprises, Inc.
(Exact Name of Registrant as Specified in Its Charter)
<TABLE>
<S> <C>
Delaware 95-2431048
-------- ----------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
40 West 57th Street, New York, N.Y. 10019
(Address of Principal Executive Offices) (Zip Code)
</TABLE>
Registrant's Telephone Number, including Area Code (212) 541-5757
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
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
APPLICABLE ONLY TO ISSUERS INVOLVED IN
BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Section 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court
Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares of Common Stock outstanding as of July 9, 1999
was 34,595,121.
<PAGE> 2
NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES
MAY 29, 1999
(Unaudited)
INDEX
-----
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
Part I - Financial Information:
Item 1. Financial Statements (Unaudited):
Condensed Consolidated Balance Sheets
As at May 29, 1999 and February 27, 1999 ........................ 2
Condensed Consolidated Statements of Earnings
For the Three Month Periods Ended
May 29, 1999 and May 30, 1998 ................................... 3
Condensed Consolidated Statements of Cash Flows
For the Three Month Periods Ended
May 29, 1999 and May 30, 1998 ................................... 4
Notes to Condensed Consolidated Financial
Statements ....................................................... 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations ............ 8
Item 3. Quantitative and Qualitative Disclosures About Market Risk 10
Part II - Other Information ............................................... 11
</TABLE>
<PAGE> 3
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
<TABLE>
<CAPTION>
ASSETS (unaudited)
May 29, February 27,
1999 1999
--------- ---------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 1,938 $ 15,498
Short-term investments 52,394 55,049
Accounts receivable - net 72,824 102,471
Inventories 83,400 70,212
Prepaid expenses and other current assets 6,324 5,434
Deferred tax benefit 7,670 7,369
--------- ---------
Total current assets 224,550 256,033
Property, plant and equipment, net of
accumulated depreciation and amortization 67,202 64,524
Other assets 13,812 11,777
--------- ---------
$ 305,564 $ 332,334
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ -- $ 50
Accounts payable - trade 32,106 29,596
Accrued expenses and other current liabilities 36,033 40,298
Income taxes payable 6,664 6,523
--------- ---------
Total current liabilities 74,803 76,467
Long-term debt -net -- 50
Stockholders' equity:
Preferred stock - par value $.01; authorized,
2,000,000 shares; no shares issued
Common stock - par value $.10; authorized, 100,000,000 shares; issued
42,632,000 shares at May 29, 1999 and 42,604,000 shares at
February 27, 1999 4,264 4,260
Additional paid-in capital 66,953 66,813
Retained earnings 280,246 275,882
Accumulated other comprehensive loss (140) (35)
--------- ---------
351,323 346,920
Less:
Common stock in treasury - at cost;
8,041,000 shares at May 29, 1999
and 5,596,000 at February 27, 1999 (120,562) (91,103)
--------- ---------
Total stockholders' equity 230,761 255,817
--------- ---------
$ 305,564 $ 332,334
========= =========
</TABLE>
The accompanying notes are an integral part of these statements.
-2-
<PAGE> 4
NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(amounts pin thousands, except share data)
<TABLE>
<CAPTION>
(unaudited)
Three Months Three Months
Ended Ended
May 29, 1999 May 30, 1998
------------ ------------
<S> <C> <C>
Net Sales $ 109,163 $ 110,980
Cost of goods sold 57,860 59,226
------------ ------------
Gross profit 51,303 51,754
Selling, general and administrative expenses 46,102 38,815
Net royalty income (1,416) (1,613)
------------ ------------
Operating profit 6,617 14,552
Investment income, net 561 1,410
Minority interest in loss of consolidated subsidiary -- 317
------------ ------------
Earnings before provision for income taxes 7,178 16,279
Provision for income taxes 2,814 6,430
------------ ------------
NET EARNINGS $ 4,364 $ 9,849
============ ============
Net earnings per share of common stock
Basic $ 0.12 $ 0.25
============ ============
Diluted $ 0.12 $ 0.23
============ ============
Weighted average number of common shares outstanding
Basic 35,405,000 39,419,000
============ ============
Diluted 37,181,000 41,981,000
============ ============
Cash dividends per common share none none
============ ============
</TABLE>
The accompanying notes are an integral part of these statements.
-3-
<PAGE> 5
NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
May 29, 1999 May 30, 1998
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 4,364 $ 9,849
-------- --------
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Minority interest in net loss of consolidated subsidiary -- (317)
Deferred income taxes (231) --
Depreciation and amortization 4,378 2,807
Provision for bad debts 278 779
Changes in operating assets and liabilities
Accounts receivable 29,369 22,859
Inventories (13,188) (18,915)
Prepaid expenses and other current assets (890) (3,489)
Other assets (2,266) (737)
Accounts payable - trade 2,509 12,727
Accrued expenses and other current liabilities (4,264) (5,252)
Income taxes payable 141 2,573
-------- --------
Total adjustments 15,836 13,035
-------- --------
Net cash provided by operating activities 20,200 22,884
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (6,825) (7,229)
Sale (purchase) of short-term investments 2,480 (650)
-------- --------
Net cash used in investing activities (4,345) (7,879)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on long-term debt (100) (50)
Purchase of treasury stock (29,460) --
Proceeds from issuance of common stock 145 495
-------- --------
Net cash (used in) provided by financing activities (29,415) 445
-------- --------
(Decrease) increase in cash and cash equivalents (13,560) 15,450
Cash and cash equivalents at beginning of period 15,498 34,616
-------- --------
Cash and cash equivalents at end of period $ 1,938 $ 50,066
-------- --------
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes $ 2,665 $ 3,838
-------- --------
</TABLE>
The accompanying notes are an integral part of these statements.
-4-
<PAGE> 6
NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MAY 29, 1999
(Unaudited)
(amounts in thousands)
NOTE 1 - The accompanying financial statements have been prepared
without audit 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 condensed or omitted pursuant to such
rules and regulations. These statements include all
adjustments, consisting only of normal recurring accruals,
considered necessary for a fair presentation of financial
position and results of operations. The financial statements
included herein should be read in conjunction with the
financial statements and notes thereto included in the latest
annual report on Form 10-K.
NOTE 2 - The results of operations for the three-month period ended
May 29, 1999 are not necessarily indicative of the results to
be expected for the full year.
NOTE 3 - The Company utilized the last-in, first-out "Lifo" method
for inventories as at May 29, 1999 and February 27, 1999 and
for the three month periods ended May 29, 1999 and May 30,
1998. The "Lifo" inventory for the three month periods ended
May 29, 1999 and May 30, 1998 are based upon end of year
estimates. Inventories at May 29, 1999 and February 27, 1999
consist primarily of finished goods.
NOTE 4 - The Company has adopted Statement of Financial Accounting
Standards No. 130 ("SFAS No. 130), "Reporting Comprehensive
Income." SFAS No. 130 establishes standards for reporting
comprehensive income and its components in a financial
statement. Accumulated other comprehensive income as presented
on the accompanying balance sheets, consists of the changes in
unrealized gains and losses on securities. Comprehensive
income as defined includes all changes in equity during a
period from non-owner sources, as follows:
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
May 29, 1999 May 30, 1998
------------ ------------
<S> <C> <C>
Net earnings $ 4,364 $ 9,849
Changes in unrealized
gains and losses on
securities, net of tax (105) (57)
------- -------
Comprehensive Income $ 4,259 $ 9,792
======= =======
</TABLE>
-5-
<PAGE> 7
NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
MAY 29, 1999
(Unaudited)
(amounts in thousands)
NOTE 5 - Short-term investments consist primarily of government and
agency bonds, tax exempt municipal bonds and corporate bonds.
These marketable securities are classified as
available-for-sale and are adjusted to market value at the end
of each accounting period. Unrealized market gains and losses,
net of deferred tax, are reported in stockholders' equity.
Realized gains and losses on sales of investments are
determined on a specific identification basis, and are
included in the consolidated statements of earnings. Gross
realized gains totaled $19 and $52 and gross realized losses
totaled $43 and $27, for the three months ended May 29, 1999
and May 30, 1998, respectively.
The unrealized losses on available-for-sale securities which
were included in accumulated other comprehensive loss were
losses of $234 (net of deferred tax of $94) and $58 (net of
deferred tax of $23) as of May 29, 1999 and February 27, 1999,
respectively.
NOTE 6 - Basic net earnings per share excludes dilution and is
computed by dividing income available to common shareholders
by the weighted-average common shares outstanding for the
period. Diluted net earnings per share reflects the
weighted-average common shares outstanding plus the potential
dilutive effect of options which are convertible into common
shares. Options which were excluded from the calculation of
diluted earnings per share because the exercise prices of the
options were greater than the average market price of the
common shares and, therefore, would be antidilutive, were
2,479,700 during the three months ended May 29, 1999. All
options were included in the calculation of related earnings
per share during the three months ended May 30, 1998.
NOTE 7 - The Company has adopted Statement of Financial Accounting
Standards No. 131, "Disclosures about Segments of an
Enterprise and Related Information," which established
reporting and disclosure standards for an enterprise's
operating segments. Operating segments are defined as
components of an enterprise for which separate financial
information is available and regularly reviewed by the
Company's senior management.
The Company has the following two reportable segments:
Wholesale and Outlet Retail. The Wholesale segment designs,
markets, sources and distributes sportswear, activewear,
outerwear, robes and sleepwear for men and robes and sleepwear
for ladies to retail store customers. The Outlet Retail
segment sells men's apparel and other Nautica-branded products
primarily through outlet retail store locations directly to
consumers.
-6-
<PAGE> 8
NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
MAY 29, 1999
(Unaudited)
(amounts in thousands)
Segment profit is based on earnings before income taxes. The reportable segments
are distinct business units and are separately managed with different
distribution channels.
<TABLE>
<CAPTION>
Outlet All Corporate/
Wholesale Retail Other eliminations Totals
--------- ------ ----- ------------ ------
<S> <C> <C> <C> <C> <C>
FOR THE THREE MONTHS ENDED MAY 29, 1999
Net Sales $85,755 $23,408 $109,163
Segment operating profit 5,199 1,703 $1,416 $(1,140) 7,178
Segment Assets 172,608 49,488 8,728 74,740 305,564
Depreciation expense 3,670 239 82 156 4,147
FOR THE THREE MONTHS ENDED MAY 30, 1998
Net Sales $ 89,687 $ 21,293 $ 110,980
Segment operating profit 11,880 3,190 $ 1,613 $ (404) 16,279
Segment Assets 164,306 36,510 10,065 119,594 330,475
Depreciation expense 2,305 180 51 89 2,625
</TABLE>
In the Corporate/elimination column the segment assets primarily consist of the
Company's cash and investment portfolio and the segment operating (loss) profit
consists of corporate expenses offset by investment income earned.
- 7 -
<PAGE> 9
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Unaudited)
RESULTS OF OPERATIONS
For the Three Months Ended May 29, 1999:
Net sales decreased 1.6% to $109.2 million in the three months ended
May 29, 1999 from $111.0 million in the comparable prior year period. The
decrease in sales is due primarily to decreased unit volume rather than price
decreases. Wholesale sales decreased 4.3% to $85.8 million from $89.7 million
due to a decline in sales of the men's sportswear business and the sale of the
Company's private label sleepwear business during the first quarter of the prior
year. This decrease was partially offset by shipments related to the launch of
the Nautica Sport Tech's spring product line. Outlet Retail sales increased 9.9%
to $23.4 million from $21.3 million as a result of opening additional outlet
stores.
Gross profit for the period was 47.0% compared to 46.6% in the
comparable prior year period. The increase resulted from an increase in higher
margin outlet retail segment sales relative to the wholesale segment.
Total selling, general and administrative expenses increased by $7.3
million to $46.1 million from $38.8 million. Selling, general and administrative
expenses as a percentage of net sales increased to 42.2% from 35.0% in the
comparable prior year period. The increase in the percentage of net sales is
principally due to costs associated with the launch and support of new product
lines.
Net royalty income decreased by $.2 million to $1.4 million from $1.6
million in the comparable prior year period. The decrease is due to the
termination of the women's sportswear license and the transition of the jeans
and fragrance licenses.
Investment income decreased by $.8 million to $.6 million from $1.4
million in the comparable prior year period. The decrease is the result of lower
average cash balances, due to the Company's stock purchase program.
The provision for income taxes decreased to 39.2% from 39.5% of
earnings before income taxes in the comparable prior year period. The decrease
is due primarily to a reduction in the effective state income tax rates.
Net earnings decreased 55.7% to $4.4 million from $9.8 million in the
comparable prior year period as a result of the factors discussed above.
- 8 -
<PAGE> 10
LIQUIDITY AND CAPITAL RESOURCES
During the three months ended May 29, 1999, the Company generated cash
from operating activities of $20.2 million principally from net earnings and
higher cash receipts from increased sales in the fourth quarter of the prior
year. The increase in inventory of $13.2 million, was financed principally by
cash generated from net earnings and a decrease in accounts receivable. Accounts
receivable was 26.7% higher than the same period in the prior year due to timing
of shipments, with a greater percentage occurring in the last part of the
quarter. Inventory was 2.6% lower than the same period in the prior year due to
a shift by retailers in order delivery dates for the fall season particularly
outerwear. During the three months ended May 30, 1998, the Company generated
cash from operating activities of $22.9 million principally from net earnings
and higher cash receipts from increased sales. The increases in inventory of
$18.9 million, to support increased sales levels, was financed by cash generated
from net earnings, increases in accounts payable-trade and a decrease in
accounts receivable. Accounts receivable and inventory were higher than the same
period in the prior year by 8.7% and 16.7%, respectively. These increases were
related to sales increases.
During the three months ended May 29, 1999, the Company's principal
investing activities related primarily to the continued expansion of the Nautica
in-store shop program. The Company expects to continue to incur capital
expenditures to expand the in-store shop program, open additional outlet retail
stores, and to launch and support new product lines. At May 29, 1999, there were
no other material commitments for capital expenditures.
During the three months ended May 29, 1999, the Company purchased
2,444,500 shares of its outstanding common stock at a cost of $29.5 million.
The Company has a total of $100.0 million in lines of credit with two
commercial banks available for short-term borrowings and letters of credit.
These lines are collateralized by inventory and accounts receivable. At May 29,
1999 and February 27, 1999, letters of credit outstanding under the lines were
$68.6 million and $37.9 million, respectively, and there were no short-term
borrowings outstanding.
Historically, the Company has experienced its highest level of sales in
the second and third quarters and its lowest level in the first and fourth
quarters due to seasonal patterns. In the future, the timing of seasonal
shipments may vary by quarter. The Company anticipates that internally generated
funds from operations, existing cash balances, short-term investments and the
Company's existing credit lines will be sufficient to satisfy its cash
requirements.
INFLATION AND CURRENCY FLUCTUATIONS
The Company believes that inflation and the effect of fluctuations of
the dollar against foreign currencies have not had a material effect on the cost
of imports or the Company's results of operations.
YEAR 2000
The Company is engaged in a process to ensure that its systems will
recognize and process transactions for the year 2000 and beyond. The Company
expects to implement successfully the systems and programming changes necessary
to address year 2000 issues with respect to its internal systems and does not
believe that the cost of such actions will have a material adverse effect on its
results of operations or financial condition. The Company has developed a plan
which identifies all systems requiring modification or replacement, established
a timeframe for ensuring its
-9-
<PAGE> 11
year 2000 compliance and appointed a responsible party in the organization for
the particular system. The Company has substantially finished the year 2000
testing and implementation of the systems upgrade and will be continuously
monitoring and testing the internal systems through the end of 1999.
The Company also has initiated discussions with its significant
suppliers, customers and financial institutions to ensure that those parties
have appropriate plans to remediate year 2000 issues when their systems
interface with the Company's systems or may otherwise impact operations.
Although the Company is not aware of any material operational issues or costs
associated with preparing its internal systems for the year 2000, there can be
no assurance that there will not be a delay in, or increased costs associated
with, the implementation of the necessary systems and changes to address the
year 2000 issues. The Company's current estimate of costs to be incurred is less
than $500,000, which is mostly being incurred internally and does not reflect
significant incremental costs. The Company and its significant suppliers,
customers, and financial institutions' inability to implement such systems and
changes could have an adverse effect on future results of operations, or
financial condition of the Company.
The Company is in the process of developing a contingency plan in order
to minimize the potential disruption of business operations that may result if
the Company, its vendors or customers fail to become year 2000 compliant.
The contingency plan is expected to be completed by the end of August 1999.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
This Quarterly Report contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E
of the Securities Exchange Act of 1934, as amended, that are not historical
facts but rather reflect the Company's current expectations concerning future
results and events. The words "believes," "anticipates," "expects" and similar
expressions, which identify forward-looking statements, are subject to certain
risks and uncertainties, including those which are economic, competitive and
technological, that could cause actual results to differ materially from those
forecast or anticipated. Readers are cautioned not to place undue reliance on
these forward-looking statements which speak only as of the date hereof. The
Company undertakes no obligation to republish revised forward-looking statements
to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. Readers are also urged to carefully review
and consider the various disclosures made by the Company in this report, as well
as the Company's periodic reports on Forms 10-K and 10-Q and other filings with
the Securities and Exchange Commission.
ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Disclosure about interest rate risk
The Company has no long-term debt, and finances capital needs
through available capital, future earnings and bank lines of credit. The
Company's exposure to market risk for changes in interest rates is primarily in
its investment portfolio. The Company, pursuant to investing guidelines,
mitigates exposure by limiting maturity, placing investments with high credit
quality issuers and limiting the amount of credit exposure to any one issuer.
During the three months ended May 29, 1999, the Company earned investment income
of $.6 million. If interest rates had been 1% lower than they were during the
year, investment income would have been $.2 million lower. The market risks
associated with the investment portfolio exposure has not changed materially
since February 27, 1999.
-10-
<PAGE> 12
PART II
OTHER INFORMATION
Items I through 9. - All items are inapplicable except:
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit Index
Exhibit No. Distribution
- ----------- ------------
3(a) Registrant's By-laws as currently in effect are
incorporated herein by reference to Registrant's
Registration Statement on Form S-1 (Registration No.
33-21998).
3(b) Registrant's Certificate of Incorporation is incorporated
by reference to the Registration Statement on Form S-3
(Registration No. 33-71926), as amended by a Certificate
of Amendment dated June 29, 1995.
10(iii)(a) Registrant's Executive Incentive Stock Option Plan is
incorporated by reference herein from the Registrant's
Registration Statements on Form S-8 (Registration Number
33-1488), as amended by the Company's Registration
Statement on Form S-8 (Registration Number 33-45823).
10(iii)(b) Registrant's 1989 Employee Incentive Stock Plan is
incorporated by reference herein from the Registrant's
Registration Statement on Form S-8 (Registration Number
33-36040).
10(iii)(c) Registrant's 1996 Stock Incentive Plan is incorporated by
reference herein from Registrant's Registration Statement
on Form S-8 (Registration Number 333-55711).
10(iii)(d) Registrant's 1994 Incentive Compensation Plan is
incorporated herein from the Registrant's Annual Report on
Form 10-K for the fiscal year ended February 28, 1997.
10(iii)(e) Registrant's Deferred Compensation Plan is incorporated
herein by reference from the Registrant's Annual Report on
Form 10-K for the fiscal year ended February 28, 1998.
10(iii)(f) Option Agreement and Royalty Agreement, each dated July 1,
1987, by and among the Registrant and David Chu are
incorporated herein by reference from the Registrant's
Registration Statement on Form S-1 (Registration No.
33-21998), and letter agreement dated May 1, 1998 between
Mr. Chu and the Registrant is incorporated herein by
reference from the Registrant's Annual Report on Form 10-K
for the fiscal year ended February 28, 1998.
27 Financial Data Schedule
(b) Reports on Form 8-K. None
- 11 -
<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.
NAUTICA ENTERPRISES, INC.
By: s/Harvey Sanders
-------------------------
Harvey Sanders
Chairman of the Board
and President
Date: July 9, 1999
- -------------------
By: s/W. Donald Pennington
-------------------------
W. Donald Pennington
Chief Financial Officer
Date: July 9, 1999
- -------------------
- 12 -
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF THE COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-04-2000
<PERIOD-START> FEB-28-1999
<PERIOD-END> MAY-29-1999
<CASH> 1,938
<SECURITIES> 52,394
<RECEIVABLES> 75,699
<ALLOWANCES> 2,875
<INVENTORY> 83,400
<CURRENT-ASSETS> 224,550
<PP&E> 104,177
<DEPRECIATION> 36,975
<TOTAL-ASSETS> 305,564
<CURRENT-LIABILITIES> 74,803
<BONDS> 0
0
0
<COMMON> 4,264
<OTHER-SE> 226,497
<TOTAL-LIABILITY-AND-EQUITY> 305,564
<SALES> 109,163
<TOTAL-REVENUES> 111,140
<CGS> 57,860
<TOTAL-COSTS> 57,860
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 7,178
<INCOME-TAX> 2,814
<INCOME-CONTINUING> 4,364
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,364
<EPS-BASIC> 0.12
<EPS-DILUTED> 0.12
</TABLE>
