1 of 18 Pages
Exhibit Index
Appears on Page 16
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 30, 1997
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 Identified No.)
of incorporation)
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 report), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
As of July 1, 1997, 48,413,209 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>
May 30, May 31,
1997 November 29, 1996
(Unaudited) 1996 (Unaudited)
Assets
Current assets:
<S> <C> <C> <C>
Cash and cash equivalents $ 14,728 $ 57,269 $ 31,834
Short-term investments 46,387 34,611 25,615
Accounts and notes receivable, net 78,140 44,866 72,965
Inventories:
Finished goods 93,267 115,468 104,054
Work in process 515 615 857
Raw materials 2,387 3,004 2,992
96,169 119,087 107,903
Deferred income taxes and
prepaid expenses 35,968 40,295 44,649
Total current assets 271,392 296,128 282,966
Property and equipment, net 53,563 52,894 59,398
Other assets 19,527 15,308 11,401
Total assets $344,482 $364,330 $353,765
</TABLE>
Theaccompanying 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>
May 30, 1997 November 29, May 31, 1996
(Unaudited) 1996 (Unaudited)
Liabilities and Stockholders' Equity
Current Liabilities:
Current maturities of
<S> <C> <C> <C>
long-term debt $ 833 $ 833 $ 833
Accounts payable 8,885 25,488 10,240
Income taxes payable 24,518 25,618 24,693
Accrued expenses and other
liabilities 49,770 42,592 38,826
Total current liabilities 84,006 94,531 74,592
Deferred income taxes 8,276 8,275 10,749
Long-term debt - - 833
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 22,682 22,778 22,780
Retained earnings 322,459 316,142 322,997
Less cost of 8,533,335 shares of common stock held in treasury (7,279,457
on November 29, 1996
and 7,342,147 on May 31, 1996) (107,178) (91,633) (92,423)
Total stockholders' equity 252,200 261,524 267,591
Total liabilities and
stockholders' equity $344,482 $364,330 $353,765
</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 May 30, 1997 and May 31, 1996
(In Thousands Except Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
May 30, May 31, May 30, May 31,
1997 1996 1997 1996
------------ ------------ ------------ ----------
<S> <C> <C> <C> <C>
Net sales $141,604 $124,185 $273,409 $243,084
Cost of sales 90,341 81,256 176,136 160,402
Selling and
administrative expenses 40,652 38,608 80,364 76,004
Operating income 10,611 4,321 16,909 6,678
Other income(expense):
Interest income 991 707 1,843 1,469
Interest expense ( 50) (313) (81) (628)
Other, net (497) (527) (1,181) (1,310)
444 (133) 581 (469)
Income before income
taxes 11,055 4,188 17,490 6,209
Provision for income
taxes 3,978 1,176 6,293 1,819
Net income $ 7,077 $ 3,012 $ 11,197 $ 4,390
Net income per share $ .14 $ .06 $ .22 $ .09
Dividends per common
share $ .05 $ .05 $ .10 $ .10
Average common shares
and common equivalents
outstanding during
the period 49,385 49,870 49,798 49,827
</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 six months ended May 30, 1997 and May 31, 1996
(Dollars in Thousands)
<TABLE>
<CAPTION>
May 30,1997 May 31,1996
------------- -------------
Cash was provided from (used for) Operations:
<S> <C> <C>
Net income $11,197 $ 4,390
Adjustments to reconcile to net cash
provided from (used for)operations:
Depreciation and amortization 5,160 5,577
Deferred income taxes, net - 179
Compensation expense related to executive
stock plans 299 266
Equity in loss of affiliate 400 373
Loss(gain) on disposal of property and (44) 1,239
equipment
Changes in:
Accounts and notes receivable (33,274) (24,899)
Inventories 22,918 37,595
Prepaid expenses 4,327 (371)
Accounts payable, income taxes, accrued
expenses and other current liabilities (10,436) (12,572)
Net cash provided from operations 547 11,777
Investments:
Short-term investments (11,776) 596
Additions to property and equipment (5,692) (4,941)
Proceeds from sales of property and
equipment 49 227
Distributions and dividends from long-term
investments - 2,359
Purchase of noncurrent marketable securities (2,538) -
Increase in other assets (2,199) (1,372)
Net cash used for investments (22,156) (3,131)
Financing:
Proceeds from sale of stock under stock plans 422 13
Cash dividends paid (4,943) (4,955)
Repurchase of common stock (16,411) -
Net cash used for financing (20,932) (4,942)
Net increase (decrease) in cash and cash
equivalents (42,541) 3,704
Cash and cash equivalents at beginning of the
period 57,269 28,130
Cash and cash equivalents at end of the period $14,728 $31,834
</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 May 30, 1997 and May 31, 1996
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 period ended May 30, 1997 are not necessarily indicative of
the results of operations that may be expected for the complete fiscal year. The
year-end condensed balance sheet data was derived from audited financial
statements, but does not include all disclosures required by generally accepted
accounting principles. Certain reclassifications have been made to the 1996
condensed consolidated financial statements to conform to the fiscal 1997
presentation. Reference is made to the Company's consolidated financial
statements for the year ended November 29, 1996 for additional information.
NOTE 2
During the first six months of fiscal 1997, interest payments amounted to
$85,000 ($553,000 in 1996). For the first six months of 1997, payments for
income taxes totaled $3,602,000 and in the first half of fiscal 1996, the
Company received net refunds of income taxes which amounted to $3,562,000.
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 certain of such factors. The Company disclaims any obligation to
update such forward-looking statements.
Results of Operations
The following table summarizes the Company's performance for the second
quarter and first six months of fiscal 1997 as compared to the results for the
similar periods in fiscal 1996:
Increase (Decrease) Percent vs. 1996 Results:
<TABLE>
<CAPTION>
Second Quarter Six Months
<S> <C> <C>
Net sales 14.0% 12.5%
Gross profit 19.4% 17.6%
Selling and administrative expenses 5.3% 5.7%
Operating income 145.6% 153.2%
Income before income taxes 164.0% 181.7%
Net income 135.0% 155.1%
</TABLE>
Operating Ratios as a Percentage to Net Sales:
<TABLE>
<CAPTION>
Second Quarter Six Months
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Gross profit 36.2% 34.6% 35.6% 34.0%
Selling and administrative expenses 28.7% 31.1% 29.4% 31.3%
Operating income 7.5% 3.5% 6.2% 2.7%
Income before income taxes 7.8% 3.4% 6.4% 2.6%
Net income 5.0% 2.4% 4.1% 1.8%
</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 second quarter of fiscal 1997 increased $17.4 million
(14%) from the net sales level achieved in the comparable period of fiscal 1996.
For the first six months of fiscal 1997, consolidated net sales were above last
year's first half by $30.3 million or 12.5%. A 16.7% increase in revenues from
the Company's wholesale divisions during the first half of fiscal 1997 offset a
7.1% decline in retail sales in the latest six-month period. In the second
quarter of fiscal 1997, wholesale division revenues increased 19.2% from the
same period of fiscal 1996, while retail sales decreased 7%. With respect to the
wholesale divisions of the Company, unit shipments of current line merchandise
during the first half of 1997 were 9.9% higher than the comparable period in
1996 and average selling prices in the first six months of 1997 increased 5.3%
from last year, primarily due to the mix of sales between the Company's various
branded divisions. The higher sales of current line merchandise during the first
half of 1997 offset a 15.3% decline in the sales of discontinued products.
Excluding the impact of product mix changes, net sales in the first six months
of 1997 decreased by approximately $0.3 million due to selling price deflation.
In the second quarter and first six months of fiscal 1997, the increased
revenues of the Company's wholesale businesses reflected the shipment of the
initial orders of the Tommy Hilfiger(R) division. The Tommy Hilfiger(R) men's
product line, which is being marketed under a license agreement with the Tommy
Hilfiger(R) Licensing, Inc., was introduced to consumers in leading department
stores and other specialty retailers on February 1, 1997. The Spring product
line included athletic, sport and casual collections for men. For the Fall
season, the Tommy Hilfiger(R) division will introduce outdoor and dress styles
for men and will deliver an expanded men's athletic product line and a boys'
product line for back-to-school selling. The Company's other wholesale divisions
also contributed to the higher revenues in the first half of 1997. Sales of the
Stride Rite Children's Group to independent dealers, family shoe stores and
department stores increased 3% during the second quarter of 1997 to bring the
six-month increase to 5% as compared to sales in the same periods of 1996. The
Sperry Top-Sider divisions' sales during the second quarter of 1997 increased
32% as compared to the same period in fiscal 1996. For the six-month period of
1997, Sperry Top-Sider sales were 21% higher than 1996 with a 33% increase in
the sales of current line merchandise offsetting a 53% decline in the sales of
discontinued products. During the second quarter of 1997, sales of the Company's
International division almost doubled, a $6 million increase from 1996. For the
first half of 1997, International division sales
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
were above 1996 by 47% reflecting the introduction of Tommy Hilfiger(R) product
in Canada and Latin America and increased sales of Sperry Top-Sider and Keds
products in South America. Sales of the Keds division, the Company's largest
business unit, decreased 7% during the second quarter of 1997 and declined 9%
for the first six months of 1997 as compared to the same period of fiscal 1996.
In the first half of 1997, weak reorders resulted in a 12% reduction in the
sales of the basic Keds Champion(R) product line. Sales of discontinued styles
at Keds were also lower in the first half of 1997, down 15% from the same period
of 1996.
For the first six months of fiscal 1997, 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, decreased 7.1% from 1996 as a lower store count offset
a 2% increase in sales at comparable stores. In the second quarter of fiscal
1997, comparable store sales were up 1.7% from the similar period in 1996. At
the end of the second quarter of 1997, the Retail division operated 205 stores,
down 12% from the total of 234 stores open in May 1996.
Gross Profit
During the first six months of fiscal 1997, gross profit increased $14.6
million, a gain of 17.6% compared to the net sales increase of 12.5%. The
consolidated gross profit percent in the first half of 1997 increased 1.6
percentage points, finishing at 35.6% in 1997 compared to 34.0% in 1996. The
gross profit performance also improved in the second quarter of 1997 as compared
to 1996 with the consolidated gross profit percent improving 1.6 percentage
points in the quarterly period to 36.2%. The increased sales of current line
merchandise and the lower sales of discontinued styles in the first half of 1997
produced a more profitable product mix than in the comparable period of 1996.
Inventory obsolescence charges and retail markdowns were lower in the 1997
period due to the Company's reduced inventory levels and a more disciplined
approach to purchasing seasonal products. The LIFO provision also had a
favorable impact on gross profit comparisons, with LIFO increasing gross profit
by $0.1 million (less than 0.1% of net sales) in 1997 compared to a reduction of
$2.8 million (1.1% of net sales) in 1996.
Inefficiencies in domestic manufacturing operations reduced the gross
profit percentage by 0.7% in the first six months of 1997. In February 1997, the
Company announced the closure of its two children's footwear manufacturing
facilities in Missouri. Existing reserves and accruals are expected to be
sufficient to offset the employee severance and other nonrecurring costs
resulting from this decision. The Company expects to incur additional
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
unfavorable operating variances during the third quarter of fiscal 1997 as the
final production at these facilities is completed and the transfer of styles to
lower cost resources in the Far East and Mexico is accomplished. The decreased
contribution to consolidated sales of the Retail division, the portion of the
Company with the highest gross profit percentage, also negatively impacted the
consolidated gross profit performance in the first half of 1997, as retail sales
accounted for 14.6% of total sales in 1997 compared to 17.7% of sales in the
first six months of 1996.
Operating Costs
Selling and administrative expenses in the first six months of fiscal 1997
increased $4.4 million or 5.7% above the first half of 1996. This rate of
increase compares favorably to the overall gain in net sales of 12.5%. Operating
costs as a percentage of sales decreased from last year by 1.9 percentage points
in the first six months (29.4% in 1997 compared to 31.3% in 1996). The operating
cost comparison between the 1997 and 1996 second quarter periods was also
favorable as expenses increased by only 5.3% compared to the sales gain of 14%
and the relationship of expenses to net sales declined by 2.4 percentage points.
Higher advertising spending, which increased by $1.9 million or 14% in the
first six months of 1997, accounted for a large portion of the increase in
operating expenses. The additional advertising costs were primarily related to
the launch of the Tommy Hilfiger(R) product line and a shift in spending to the
first half of the year at Stride Rite Children's Group and Sperry Top-Sider. As
a percentage of net sales, advertising expense represented 5.7% of sales in the
first six months of 1997, which was slightly higher than the spending rate of
5.6% of sales in the comparable period in 1996. Retail store expenses decreased
7.4% during the first half of 1997 due to the closing of underperforming
locations over the past year. Distribution expenses decreased 4.6% during the
first six months of 1997 despite the increased sales volume of the wholesale
business units due to increased efficiencies at the Company's Kentucky
distribution center. Distribution expenses represented 2.3% of net sales in the
first half of 1997 compared to 2.8% in 1996.
Other Income and Taxes
Other income (expense) increased pre-tax income by $0.6 million in the
first six months of fiscal 1997 compared to a decrease of $0.5 million in the
first half of fiscal 1996. Interest income increased $0.4 million in 1997 due to
higher levels of short-term investments during the first six months of 1997 than
in the comparable 1996 period. Interest expense in the first six months of 1997
was lower than 1996, decreasing $0.5 million, as the Company
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
maintained lower borrowing due to reduced inventory levels. Average short-term
borrowings in the first six months of 1997 were $1.1 million, down significantly
from the average borrowings of $18.3 million in the comparable period of 1996.
The provision for income taxes increased $4.5 million in the first six
months of fiscal 1997 as compared to the similar period in fiscal 1996 primarily
due to the higher pre-tax income earned in the 1997 period. The 1997 effective
income tax rate was also higher, 36% compared to 29.3% in 1996, due to reduced
tax savings related to a company-owned life insurance program.
Net Income
Net income for the first six months of fiscal 1997 increased $6.8 million,
up 155 % from the income earned in the 1996 first half. With the improved gross
profit performance and an increase in operating expenses which was well below
the rate of sales growth, the Company's after-tax return on net sales in the
first six months improved by 2.3 percentage points (4.1% of sales in 1997
compared to 1.8% in 1996).
Liquidity and Capital Resources
At May 30, 1997, the Company's balance sheet reflects a current ratio of
3.2 to 1 with no long-term debt. The Company's cash and short-term investments
totaled $61.1 million at the end of the latest quarter, above from the cash and
investments total of $57.4 million at the end of the first half of 1996. In
1997, other assets also included $9.6 million of investments in
intermediate-term, fixed income instruments. During the first six months of
1997, the Company's operations generated $0.6 million of cash, down from the
$11.8 million operating cash flow in 1996 as additional working capital was
required in the first half of 1997 to support the increased sales levels. In
addition, during the 1997 period, the Company increased its short-term
investments by $11.8 million from the 1996 fiscal year-end total.
At May 30, 1997, receivable and inventory levels totaled $174.3 million, a
decrease of $6.6 million or 3.6% from the $180.9 million asset amount at the end
of the first half of 1996. Accounts receivable of $78.1 million at the end of
the second quarter of 1997 was only 7.1% above from 1996 amount, despite the
19.2% increase in revenues related to the Company's wholesale businesses during
the second quarter of 1997. Inventories were lower at the end of the first six
months of 1997, down $11.7 million or 10.8% from the 1996 level, as additional
inventory associated with the Tommy Hilfiger(R) business was more than offset by
the impact of retail store closings and a reduction in the inventory level of
Keds products.
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
The Company's Board of Directors had previously authorized a 16 million
share stock repurchase program. During the first six months of 1997, the Company
repurchased 1,327,900 shares of common stock for an aggregate expenditure of
$16.4 million in cash. The latest transactions bring the cumulative shares
repurchased under the program to 15,285,400 shares, or 96% of the authorized
total, and the aggregate expenditure amount under this program to $136.4
million.
The Company uses bank lines of credit to fund seasonal working capital
needs. There were no borrowings outstanding under these arrangements at May 30,
1997 or May 31, 1996.
12
<PAGE>
PART II - OTHER INFORMATION
THE STRIDE RITE CORPORATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Annual Meeting of the Company's shareholders was held on April 23,
1997. The three Directors nominated by management were elected by the vote set
forth below:
Votes
------------------------
Name of Director For Withheld
Robert L. Seelert 46,241,799 618,631
Robert C. Siegel 46,193,270 667,160
Myles J. Slosberg 46,244,961 615,469
The Company's other directors, whose term of office continues after the 1997
stockholders' meeting, are as follows:
Donald R. Gant
Margaret A. McKenna
Frank R. Mori
W. Paul Tippett, Jr.
Jeanette S. Wagner
The Company's shareholders also ratified the Company's selection of Coopers &
Lybrand L.L.P. as auditors of the Company for the 1997 fiscal year by the vote
set forth below:
Votes
-----------------------------------------------
For Against Abstentions
46,573,409 145,301 141,720
13
<PAGE>
Part II - OTHER INFORMATION(Continued)
THE STRIDE RITE CORPORATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits Description of Exhibit
Exhibit No.
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 second quarter of fiscal year 1997. On July 1,
1997, the Company filed a report on Form 8-K describing the
adoption of a replacement shareholder rights plan, under
which one preferred share purchase right will be distributed
to stockholders of record on July 17, 1997. This shareholder
rights plan replaces a similar plan instituted by the
Company's Board of Directors in July 1987. Rights issued
pursuant to the 1987 plan will expire on July 17, 1997. For
additional information, reference is made to the Form 8-K
and Form 8-A filed on July 1, 1997, including the exhibits
thereto.
14
<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 signed on its behalf by the
undersigned duly authorized.
THE STRIDE RITE CORPORATION
(Registrant)
Date: July 10, 1997 By: /s/ John M. Kelliher
John M. Kelliher
Vice President, Finance,
Treasurer, and Corporate Controller
15
<PAGE>
THE STRIDE RITE CORPORATION
INDEX TO EXHIBITS
Exhibit No.
Sequential Page No.
11 Computation of Per Share Earnings Page 17 of 18
27 Financial Data Schedule Page 18
16
<PAGE>
Exhibit 11
THE STRIDE RITE CORPORATION
COMPUTATION OF PER SHARE EARNINGS
(In Thousands except Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
May 30, May 31, May 30, May 31,
1997 1996 1997 1996
-------- ------- ------- --------
Net income applicable to common
<S> <C> <C> <C> <C>
shares $ 7,077 $ 3,012 $11,197 $ 4,390
Calculation of shares:
Weighted average number of
common shares outstanding 48,775 49,589 49,184 49,568
Common shares attributable to assumed exercise of dilutive stock options and
stock purchase rights using the
treasury stock method 610 281 614 259
Average common shares and common
equivalents outstanding during
the period 49,385 49,870 49,798 49,827
Net income per common share $ .14 $ .06 $ .22 $ .09
</TABLE>
17
<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-share data.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> NOV-28-1997 NOV-28-1997
<PERIOD-END> MAY-30-1997 MAY-30-1997
<CASH> 14,728 14,728
<SECURITIES> 46,387 46,387
<RECEIVABLES> 86,911 86,911
<ALLOWANCES> 8,771 8,771
<INVENTORY> 96,169 96,169
<CURRENT-ASSETS> 271,392 271,392
<PP&E> 82,836 82,836
<DEPRECIATION> 29,273 29,273
<TOTAL-ASSETS> 344,482 344,482
<CURRENT-LIABILITIES> 84,006 84,006
<BONDS> 0 0
0 0
0 0
<COMMON> 14,237 14,237
<OTHER-SE> 237,963 237,963
<TOTAL-LIABILITY-AND-EQUITY> 344,482 344,482
<SALES> 141,604 273,409
<TOTAL-REVENUES> 141,604 273,409
<CGS> 90,341 176,136
<TOTAL-COSTS> 90,341 176,136
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 433 1,270
<INTEREST-EXPENSE> 50 81
<INCOME-PRETAX> 11,055 17,490
<INCOME-TAX> 3,978 6,293
<INCOME-CONTINUING> 7,077 11,197
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 7,077 11,197
<EPS-PRIMARY> .14 .22
<EPS-DILUTED> .14 .22
</TABLE>
