1 of 17 Pages
Exhibit Index
Appears on page 14
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 (FEE REQUIRED)
For the quarterly period ended August 30, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from to .
Commission File Number: 1-4404
THE STRIDE RITE CORPORATION
(Exact name of registrant as specified in its charter)
Massachusetts 04-1399290
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
191 Spring Street, Lexington, Massachusetts 02173
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 617-824-6000
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each class on which registered
Common Stock, $.25 par value New York Stock Exchange
Preferred Stock Purchase Rights New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports
required 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
As of October 7, 1996, 49,616,821 shares of the registrant's common stock,
$.25 par value, and the accompanying Preferred Stock Purchase Rights were
outstanding.
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
THE STRIDE RITE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
<TABLE>
<CAPTION>
Aug. 30, Sept. 1,
1996 December 1, 1995
(Unaudited) 1995 (Unaudited)
Assets
Current Assets:
<S> <C> <C> <C>
Cash and cash equivalents $41,080 $ 28,130 $ 12,574
Short-term investments 30,016 26,211 35,972
Accounts and notes
receivable, net 74,959 48,066 98,513
Inventories:
Finished goods 91,210 141,914 116,555
Work in process 1,070 863 699
Raw materials 5,048 2,721 2,128
------- ------- -------
97,328 145,498 119,382
Deferred income taxes
and prepaid expenses 43,881 44,458 38,879
------- ------- ------
Total current assets 287,264 292,363 305,320
Property and equipment, net 54,275 60,434 53,260
Other assets 16,602 13,819 18,437
------- -------- --------
Total assets $358,141 $366,616 $377,017
======== ======== ========
</TABLE>
The accompanying notes are an integral part of the condensed
consolidated financial statements.
2
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Dollars In Thousands)
<TABLE>
<CAPTION>
Aug. 30, Sept. 1,
1996 December 1, 1995
(Unaudited) 1995 (Unaudited)
Liabilities and Stockholders' Equity
Current Liabilities:
Current maturities of long-term
<S> <C> <C> <C>
debt $ 833 $ 833 $ 833
Short-term debt - - 1,000
Accounts payable 13,591 22,963 11,740
Income taxes payable 25,592 19,492 33,693
Accrued expenses and other
liabilities 39,454 44,290 30,726
------- ------- -------
Total current liabilities 79,470 87,578 77,992
Deferred income taxes 9,444 10,749 8,132
Long-term debt 833 833 1,667
Stockholders' Equity:
Preferred stock, $1 par value
Shares authorized - $1,000,000
Shares issued - None - - -
Common stock, $.25 par value
Shares authorized - 135,000,000
Shares issued - 56,946,544 14,237 14,237 14,237
Capital in excess of par value 22,745 23,006 23,365
Retained earnings 323,711 323,566 347,010
Less cost of 7,332,306 shares of
common stock held in treasury
(7,416,037 on December 1, 1995
and 7,576,787 on September 1, 1995) (92,299) (93,353) (95,386)
------- ------- -------
Total stockholders' equity 268,394 267,456 289,226
------- ------- -------
Total liabilities and
stockholders' equity $358,141 $366,616 $377,017
======== ======== ========
</TABLE>
The accompanying notes are an integral part of the
condensed consolidated financial statements.
3
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the periods ended August 30, 1996 and September 1, 1995
(In Thousands Except Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
Aug. 30,1996 Sept. 1,1995 Aug. 30,1996 Sept. 1,1995
<S> <C> <C> <C> <C>
Net sales $123,540 $139,140 $366,624 $418,298
Cost of sales 80,067 91,168 240,469 267,884
Selling and administrative
expenses 40,061 42,228 116,065 129,506
-------- -------- --------- ---------
Operating income 3,412 5,744 10,090 20,908
Other income (expense):
Interest income 878 750 2,347 2,375
Interest expense (38) (90) (666) (801)
Other, net (346) (712) (1,656) (2,119)
------ ------- ------- -------
494 (52) 25 (545)
------ -------------------- -------
Income before income taxes 3,906 5,692 10,115 20,363
Provision for income
taxes 713 2,205 2,532 7,900
------ -------- -------- --------
Net income $ 3,193 $ 3,487 $ 7,583 $12,463
======== ======== ======== =======
Net income per
common share $.06 $.07 $.15 $.25
==== ==== ==== ====
Dividends per common share $.05 $.095 $.15 $.285
==== ===== ==== =====
Average common shares
and common equivalents
outstanding during
the period 49,831 49,741 49,827 49,816
====== ====== ====== ======
</TABLE>
The accompanying notes are an integral part of the
condensed consolidated financial statements.
4
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the nine months ended August 30, 1996 and September 1, 1995
(Dollars In Thousands)
<TABLE>
Aug.30, 1996 Sept.1, 1995
Cash was provided from (used for) Operations:
<S> <C> <C>
Net income $ 7,583 $12,463
Adjustments to reconcile to net cash provided
from (used for) operations:
Depreciation and amortization 7,601 8,459
Deferred income taxes, net (375) -
Equity in loss (earnings) of affiliate 559 (149)
Loss on disposals of property and equipment 1,564 407
Loss related to impairment of asset 3,800 -
Gain related to long-term investment (171) -
Changes in:
Accounts and notes receivable (26,893) (35,110)
Inventories 48,170 37,446 37,446
Long-term notes receivable 61 -
Prepaid expenses (353) (904)
Accounts payable, income taxes, accrued
expenses and other current liabilities (7,335) (16,956)
------- -------
Net cash provided from operations 34,211 5,656
------- -------
Investments:
Short-term investments (3,805) (5,438)
Additions to property and equipment (5,966) (11,934)
Proceeds from sales of property and equipment 270 30
Purchase of noncurrent marketable securities (5,989) -
Distributions and dividends from long-term
investments 2,622 98
Acquisition of business - (5,308)
Increase in other assets (973) (831)
------- -------
Net cash used for investments (13,841) (23,383)
------- -------
Financing:
Proceeds from sale of stock under stock plans 15 12
Cash dividends paid (7,435) (14,118)
Repurchase of common stock - (2,006)
Short-term debt - 1,000
------- -------
Net cash used for financing (7,420) (15,112)
------- -------
Net increase (decrease) in cash and cash equivalents 12,950 (32,839)
Cash and cash equivalents at beginning of the period 28,130 45,413
------- -------
Cash and cash equivalents at end of the period $41,080 $12,574
======= =======
</TABLE>
The accompanying notes are an integral part of the condensed
consolidated financial statements.
5
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
The financial information included in this Form 10-Q of The Stride Rite
Corporation (the "Company") for the periods ended August 30, 1996 and Sep tember
1, 1995 is unaudited and subject to year-end audit adjustments. However, such
information includes all adjustments (including all normal recurring
adjustments) which, in the opinion of management, are considered necessary for a
fair presentation of the consolidated results for those periods. The results of
operations for the nine-month period ended August 30, 1996 are not necessarily
indicative of the results of operations that may be expected for the complete
fiscal year. The year-end condensed bal ance sheet data was derived from the
Company's audited financial statements, but does not include all disclosures
required by generally accepted accounting principles. Certain reclassifications
have been made to the 1995 condensed consolidated financial statements to
conform to the fiscal 1996 presentation.
NOTE 2
During the first nine months of fiscal 1996, interest payments amounted to
$558,000 ($780,000 in 1995). For the first nine months of 1996, the Company
received net refunds of income taxes amounting to $3,193,000. In the first nine
months of fiscal 1995, payments for income taxes totaled $7,374,000.
6
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Certain statements contained in this Item 2 are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 and are thus prospective. Such forward-looking statements are subject to
risks, uncertainties and other factors which could cause actual results to
differ materially from future results expressed or implied by such
forward-looking statements. Readers are referred to Exhibit 99 to the Company's
Quarterly Report on Form 10-Q for the fiscal period ended March 1, 1996 for a
discussion of some of such factors.
Results of Operations
The following tables summarize the Company's performance for the third
quarter and nine-month period:
Percent Increase (Decrease) vs. 1995 Results for the Comparable Period:
<TABLE>
Third Quarter Nine Months
<S> <C> <C>
Net sales (11.2%) (12.4%)
Gross profit (9.4%) (16.1%)
Selling and administrative expenses (5.1%) (10.4%)
Operating income (40.6%) (51.7%)
Income before income taxes (31.4%) (50.3%)
Net income (8.4%) (39.2%)
</TABLE>
Operating Ratios as a Percentage of Net Sales:
<TABLE>
<CAPTION>
Third Quarter Nine Months
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Gross Profit 35.2% 34.5% 34.4% 36.0%
Selling and administrative
expenses 32.4% 30.3% 31.7% 31.0%
Operating income 2.8% 4.1% 2.8% 5.0%
Income before income taxes 3.2% 4.1% 2.8% 4.9%
Net income 2.6% 2.5% 2.1% 3.0%
</TABLE>
7
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations (cont'd)
Net sales in the third quarter of fiscal 1996 decreased $15.6 million
(11.2%) from the net sales level achieved in the comparable period in fis cal
1995. For the first nine months of fiscal 1996, net sales were below last year's
comparable period by $51.7 million or 12.4%. A 15% decline in revenues from the
Company's wholesale divisions during the first nine months of fiscal 1996 was
partially offset by increased retail sales in the same period. With respect to
the wholesale divisions of the Company, unit shipments of current line
merchandise during the first nine months of 1996 were down 10.8% from shipments
in the comparable period of fiscal 1995. Lower sales of discontinued products,
down 3.8% in the nine months, a slight decline in average selling price and
increased promotional allow ances at Keds also contributed to the sales decrease
in the first nine months of 1996 as compared to the same period in fiscal 1995.
Excluding the impact of product mix changes, net sales in the nine months
increased by approximately $0.7 million due to selling price inflation.
The sales decline in the Company's wholesale businesses during the third
quarter and first nine months of fiscal 1996 was largely caused by lower
revenues of the Company's Keds division. Keds' sales were down 29% in the third
quarter of 1996 and, for the nine-month period were below the same period last
year by 23%. A 2% increase in reorders in the third quar ter of 1996 was
insufficient to offset the impact of lower advance bookings from a weak Fall
season product offering. This unfavorable performance in the third quarter
continued the business trends which occurred during the first half of fiscal
1996. Entering fiscal 1996, the backlog of advance orders for Keds products,
calling for shipment in the first quarter of 1996, was below backlog at the
outset of fiscal 1995, reflecting the Spring 1996 sales policies for Keds core
products, which emphasized the division's quick-response reorder capabilities.
This policy change was intended to shift product deliveries closer to the retail
selling season resulting in lower retailer inventories and improved retailer
profitability. This pol icy change continued for the Fall season of fiscal 1996.
As a result of this policy change, in fiscal 1996, Keds' success depended, more
heavily than in past years, on retail sell-through performance and the resulting
reorder activity. Given the weakness of the Fall product line and a lower
backlog of advance orders, the Keds division is expected to continue to show
lower sales in the fourth quarter of fiscal 1996.
The other wholesale divisions of the Company posted improved sales results
in the third quarter of 1996 compared to the third quarter of 1995,
8
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations (Continued)
with Stride Rite Children's Group revenues up 12%, Sperry Top-Sider divi sion
sales above 1995 by 2% and the Company's International division achieving a
sales gain of 34%. For the first nine months of 1996, sales of the Stride Rite
Children's Group to independent dealers and department stores increased 1% from
the comparable period in fiscal 1995. Sales of the Sperry Top-Sider division in
the first nine months of 1996 were even with 1995 as a result of late product
deliveries and resulting low inventory levels which prevented the division from
fully capitalizing on a favorable reaction to Sperry's 1996 product lines. For
the first nine months of 1996, the Company's International division experienced
an increase of 2% from the sales level achieved in the comparable period of
1995.
For the first nine months of fiscal 1996, sales of the Company's Retail
division, which includes the Stride Rite children's booteries and leased
departments, manufacturers' outlets and the initial stores of the Great Feet(TM)
and Keds retail concepts, increased 2% from the first nine months of 1995 as a
more productive store mix offset the impact of store closings and a 0.6% decline
in sales at comparable stores. During the first nine months of 1996, the Retail
division operated an average of 232 stores, down 14% from the average of 269
stores operated during the same period of 1995. In the third quarter of 1996,
Retail Division sales were down 2% from the comparable period in 1995 as the
lower store count offset a 0.4% increase in sales at comparable stores. Average
store sales volumes improved during the first nine months of 1996 following the
closing of 28 low-volume leased departments during the fourth quarter of fiscal
1995. During the first nine months of 1996, the Company also eliminated 30 of
the 48 underperforming retail operations which were targeted for closing in 1996
as part of the Company's restructuring plan and closed an additional 16
low-volume leased departments which were marginally profitable. At the end of
the third quarter of 1996, the Retail division operated 212 stores compared to
279 stores in August 1995.
During the first nine months, gross profit declined 16.1% compared to the
sales decline of 12.4%. Gross profit was also lower in the third quarter of
1996, showing a decrease of 9.4%, while sales declined by 11.2% as compared to
the third quarter of 1995. The consolidated gross profit percentage in the nine
months decreased to 34.4% in 1996 from the 36% rate recorded in 1995. The gross
profit rate for the third quarter of 1996 finished above last year, 35.2% in
1996 compared to 34.5% in 1995. The LIFO provision reduced gross profit by $1.7
million (0.5% of net sales) in
9
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations (Continued)
1996 nine-month period compared to a provision of $2.3 million (0.6% of net
sales) in the first nine months of 1995. The LIFO adjustment increased gross
profit for the third quarter of 1996 by $1.1 million (0.9% of sales) compared to
a reduction of $0.6 million (0.4% of sales) in the comparable period of fiscal
1995. The reduced importance of Keds sales, especially in the higher-margin,
Champion(R) canvas product category, to consolidated sales contributed to the
decline in gross profit percent between the 1996 and 1995 periods. Gross profit
performance in the third quarter and first nine months of 1996 was also hurt by
the cost of special promotions to help the retail sell-through of Keds products
during the Spring and early Summer selling periods. Unfavorable variances
related to domestic manufacturing operations, which included the phase-out of a
children's facility in Mis souri, reduced gross profit in the first nine months
of 1996 by 0.8 per centage points, an increase from the unfavorable
manufacturing variances of 0.5 points experienced during the comparable period
of 1995. The consoli dated gross profit percentage was favorably impacted in
1996 by the increased contribution to sales of the Retail division, the portion
of the Company with the highest gross profit percentage, as retail sales
accounted for 18% of consolidated net sales in 1996 compared to 15.5% of sales
in the first nine months of 1995.
Selling and administrative expenses in the first nine months of fiscal 1996
decreased $13.4 million or 10.4% from the spending level incurred during the
same period of fiscal 1995. In the third quarter of 1996, sell ing and
administrative expenses decreased $2.2 million or 5.1% below the comparable
period in fiscal 1995. As a percentage of sales, these expenses represented
31.7% of net sales in the first nine months of 1996, an increase from the
spending rate of 31% experienced in the first nine months of 1995. Expenses in
the third quarter and nine-month period of 1996 in cluded a provision of $3.8
million related to the impairment in value of certain software related expenses
which were capitalized in prior years. Excluding this adjustment, selling and
administrative expenses were below 1995 by 14.1% for the third quarter and 13.3%
for the nine months. Lower advertising spending accounted for more than half of
the expense reduction. Advertising expenses in the first nine months of 1996
totaled $20.1 million (5.5% of sales), down $7.3 million from the spending level
of $27.4 million (6.5% of sales) in the 1995 period. While distribution costs
decreased $0.4 million or 2% from the first nine months of 1995, these costs
repre sented 4.4% of sales in the first nine months of 1996 compared to 3.9% in
1995. Retail store expenses in the 1996 nine-month period decreased $0.5 million
from 1995 as the closing of underperforming retail
10
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations (Continued)
locations during 1996 more than offset the increased costs related to new stores
opened in fiscal 1995. Other selling and administrative costs, excluding the
software asset adjustment described above, in the first nine months of 1996
decreased $9.1 million or 14.4% from the comparable period in 1995 due to the
lower sales level experienced in the wholesale divisions and the actions
initiated in the second half of 1995 to consolidate certain administrative
functions and to reduce overall spending. Efforts continue to be focused on
further streamlining of the Company's business processes in order to attempt to
reduce the expense structure.
Other income (expense) increased pre-tax income slightly in the first nine
months of 1996 compared to an income decrease of $0.5 million in the comparable
period of fiscal 1995. Interest income during the first nine months of 1996 was
slightly below last year as higher levels of investable funds offset decreased
short-term investment yields. Interest expense in the first nine months of 1996
was below the 1995 expense level due to lower interest rates (5.9% in 1996
compared to 6.2% in 1995). Other expenses, which are primarily related to the
costs of a company-owned life insurance program, decreased $0.5 million in the
first nine months of 1996 from the expense level in the comparable period of
fiscal 1995. The provision for income taxes in the first nine months of 1996 was
below 1995 due to the lower pre-tax income and a lower effective income tax
rate. The 1996 effec tive income tax rate of 25% was below the 1995 rate of
38.8% due to the increased impact of tax savings related to the company-owned
life insurance program.
During the first nine months of fiscal 1996, net income decreased $4.9
million or 39.2% compared to the first nine months of fiscal 1995 because of the
sales decline and lower gross profit performance described above. For the third
quarter of fiscal 1996, net income decreased $0.3 million or 8.4% from the third
quarter of 1995 as a higher gross profit percentage, reduced selling and
administrative expenses and a lower effective income tax rate partially offset
the lower income caused by the sales decline.
Liquidity and Capital Resources
At August 30, 1996, the Company's balance sheet reflects a current ratio of
3.6 to 1 and a debt-to-equity relationship of 0.3%. The Company's cash and
short-term investments totaled $71.1 million at the end of the quarter, above
the fiscal year-end 1995 level of $54.3 million and the cash and investments
balance of $48.5 million as of September 1, 1995. Addi tionally, other assets at
August 30, 1996 includes $6 million of
11
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Liquidity and Capital Resources (Continued)
medium-term, fixed income securities under an investment program initiated
during the third quarter of 1996. During the first nine months of 1996, the
Company's operations generated $34.2 million of cash as compared to the $5.7
million of funds generated by operations in the comparable period of 1995.
At August 30, 1996, inventory and receivable levels totaled $172.3 million,
down $45.6 million or 21% from the $217.9 million amount at the end of the third
quarter in fiscal 1995. Inventory levels at August 30, 1996 were down $22.1
million or 18.5% from the total at September 1, 1995 due to the store closing
and reductions in Stride Rite and Sperry Top-Sider inventories from the levels
maintained in 1995. Receivables were also lower at August 30, 1996, with the
decrease from the 1995 level caused by the lower sales level experienced in the
first nine months of 1996.
The Company uses bank lines of credit to fund seasonal working capital
needs. No short-term borrowings were outstanding at August 30, 1996, as compared
to the $1 million debt level at September 1, 1995. Average out standing
borrowings under these lines of credit during the first nine months of fiscal
1996 amounted to $12.2 million compared to $14 million in the comparable period
of fiscal 1995.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits. The following Exhibits are contained herein:
Exhibit No. Description of Exhibit
11 Computation of Per Share Earnings
27 Financial Data Schedule
(b) Reports on Form 8-K
The Company did not file any current reports on Form 8-K during
the third quarter of fiscal year 1996.
12
<PAGE>
THE STRIDE RITE CORPORATION
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signedon its behalf by the
undersigned duly authorized.
THE STRIDE RITE CORPORATION
(Registrant)
Date: October 15, 1996 By:/s/ John M. Kelliher
---------------------
John M. Kelliher
Vice President, Finance,
Treasurer, and Corporate Controller
13
<PAGE>
THE STRIDE RITE CORPORATION
INDEX TO EXHIBITS
Exhibit No.
Sequential Page No.
11 Computation of Per Share Earnings Page 15 of 17
27 Financial Data Schedule Pages 16 and 17
of 17
14
<PAGE>
Exhibit 11
THE STRIDE RITE CORPORATION
COMPUTATION OF PER SHARE EARNINGS
(In Thousands except Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
Aug.30,1996 Sept. 1,1995 Aug.30,1996 Sept. 1,1995
Net income applicable
<S> <C> <C> <C> <C>
to common shares $ 3,193 $ 3,487 $7,583 $12,463
Calculation of shares:
Weighted average num-
ber of common
shares outstanding 49,607 49,441 49,581 49,506
Common shares attri-
butable to assumed
exercise of dilu-
tive stock options
and stock purchase
rights using the
treasury stock
method 224 300 246 310
Average common shares
and common equiva-
lents outstanding
during the
period 49,831 49,741 49,827 49,816
Net income per common
share $.06 $.07 $.15 $.25
</TABLE>
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The notes to the condensed consolidated financial statements are an integral
part of such statements and the condensed consolidated financial information in
this schedule. Figures below are in thousands, except per-data share.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> NOV-29-1996 NOV-29-1996
<PERIOD-END> AUG-30-1996 AUG-30-1996
<CASH> 41,080 41,080
<SECURITIES> 30,016 30,016
<RECEIVABLES> 81,996 81,996
<ALLOWANCES> 7,037 7,037
<INVENTORY> 97,328 97,328
<CURRENT-ASSETS> 287,264 287,264
<PP&E> 80,012 80,012
<DEPRECIATION> 358,141 358,141
<TOTAL-ASSETS> 79,470 79,470
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
0 0
0 0
<COMMON> 14,237 14,237
<OTHER-SE> 254,157 254,157
<TOTAL-LIABILITY-AND-EQUITY> 358,141 358,141
<SALES> 123,450 366,624
<TOTAL-REVENUES> 123,450 366,624
<CGS> 80,067 240,469
<TOTAL-COSTS> 80,067 240,469
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 226 1,084
<INTEREST-EXPENSE> 38 666
<INCOME-PRETAX> 3,906 10,115
<INCOME-TAX> 713 2,532
<INCOME-CONTINUING> 3,193 7,583
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 3,193 7,583
<EPS-PRIMARY> .06 .15
<EPS-DILUTED> .06 .15
<PAGE>
</TABLE>
