SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 21, 2003
Blair Corporation
(Exact name of registrant as specified in its charter)
Delaware 001-00878 25-0691670
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(State or other (Commission File No.) (I.R.S. Employer
Jurisdiction of Identification No.)
incorporation)
220 Hickory Street, Warren, Pennsylvania 16366-0001
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(Address of Principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (814) 723-3600
Not Applicable
(Former name or former address, if changed since last report)
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Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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(c) Exhibits
Exhibit 99.1. Press Release.
Item 9. Regulation FD Disclosure and Item 12 Disclosure of Results of
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Operations and Financial Condition.
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The following information is furnished pursuant to Item 9, "Regulation
FD Disclosure" and Item 12, "Disclosure of Results of Operations and Financial
Condition."
On October 21, 2003, Blair Corporation issued a press release
announcing its earnings for the three months and nine months ended September 30,
2003. The information contained in the press release, which is attached as
Exhibit 99.1 to this Form 8-K, is incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: October 22, 2003 Blair Corporation
By: John E. Zawacki
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John E. Zawacki
President and Chief Executive Officer
By: Bryan J. Flanagan
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Bryan J. Flanagan
Senior Vice President and Chief
Financial Officer
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FOR IMMEDIATE RELEASE:
CONTACTS:
Blair Corporation Carl Hymans
Bryan Flanagan, SVP/Chief Financial Officer G.S. Schwartz & Co
Thomas McKeever, SVP/Operations & Administration 212-725-4500
814-723-3600 carlh@schwartz.com
BLAIR CORPORATION REPORTS THIRD QUARTER RESULTS
WARREN, Pa., (October 21, 2003) -- Blair Corporation (Amex: BL),
(www.blair.com), a national multi-channel direct marketer of women's and men's
apparel and home products, today announced results for the third quarter and
nine months ended September 30, 2003.
Net sales for the third quarter ended September 30, 2003, were $124.1 million
compared to $117.8 million reported for the third quarter ended September 30,
2002.
Net income for the third quarter ended September 30, 2003, was $793,000, or
$0.10 per basic and diluted share, compared to net income of $279,000, or $0.03
cents per basic and diluted share, reported for the third quarter last year.
Net sales for the nine months ended September 30, 2003, were $415.5 million
compared to $400.6 million reported for the first nine months ended September
30, 2002.
Net income for the nine months ended September 30, 2003, was $5.4 million, or
$0.67 per basic and diluted share, compared to $12.9 million, or $1.61 per basic
and diluted share, reported for the nine months last year.
Cost of goods sold as a percentage of net sales increased to 48.5% for the first
nine months of 2003 from 47.8% for the comparable period last year. The rise in
the cost of goods sold of $2.9 million primarily reflects initiatives undertaken
to better manage inventory. Higher inbound airfreight expenses and shipping
costs also impacted the cost of goods sold.
Advertising expenses as a percent of net sales rose to 27.4% for the first nine
months of 2003 from 25.6% for the comparable period a year ago. The increase of
$7.5 million is attributable to a strategic increase in catalog mailings to
current and prospective customers.
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"Blair is committed to meeting near-term challenges while positioning the
Company for long-term growth. We continue to strengthen our balance sheet,
maintain liquidity and control inventory levels. Blair is increasing strategic
efforts to improve profitability and inventory management. For example, the
Company's significantly enhanced and fully automated fulfillment capabilities
will increase efficiency and productivity while reducing operating costs," said
Bryan J. Flanagan, Senior Vice President and Chief Financial Officer.
John E. Zawacki, President and Chief Executive Officer said, "Blair continues to
undertake strategic initiatives to weather current economic conditions and
consumer spending declines which continue to challenge the retail and direct
marketing industries.
"Blair is steadfast in its efforts to expand core businesses and develop growth
opportunities. Our Crossing Pointe catalog and E-commerce initiatives have again
increased revenue and expanded our customer files. Blair.com generated $51.9
million in gross demand in the first nine months of 2003 as compared to $39
million for the same period a year ago. Gross demand for Crossing Pointe rose
$6.4 million to $52 million for the first nine months of 2003 when compared to
the same 2002 period.
We are adhering to our strategic plan to increase sales and market share and
strengthen our financial position. We continue to enhance our position as the
premier multi-channel direct marketer to value-conscious consumers and are
committed to increasing long-term profitability and shareholder value,"
concluded Mr. Zawacki.
About Blair
Headquartered in Warren, Pennsylvania, Blair Corporation sells a broad range of
women's and men's apparel and home products through direct mail marketing and
its Web site at www.blair.com, in addition to other Web sites. Blair Corporation
employs over 2,700 people and operates facilities and retail outlets in
Northwestern Pennsylvania as well as a catalog outlet in Wilmington, Delaware.
The Company, which has annual sales of more than $560 million, is publicly
traded on the American Stock Exchange (AMEX-BL).
This release contains statements relating to future results of the Company
(including certain projections and business trends) that are "forward-looking
statements" as defined in the Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those projected as a result of certain
risks and uncertainties, including but not limited to, changes in political and
economic conditions, interest rate fluctuations, decreased consumer spending,
decreased demand for and market acceptance of new and existing products, as well
as other risks and uncertainties detailed in the most recent periodic filings of
the Company with the Securities and Exchange Commission.
--Financial table follows--
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BLAIR CORPORATION
COMPARATIVE OPERATING HIGHLIGHTS
DOLLARS IN THOUSANDS
(UNAUDITED)
For the Three Months Ended September 30
2003 2002
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Net sales $124,100 $ 117,830
Income before income taxes 1,270 415
Income taxes 477 136
Net income 793 279
Basic and diluted earnings per share $0.10 $0.03
Average shares outstanding 8,058,665 8,027,272
For the Nine Months Ended September 30
2003 2002
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Net sales $415,459 $ 400,605
Income before income taxes 8,696 20,058
Income taxes 3,303 7,145
Net income 5,393 12,913
Basic and diluted earnings per share $ 0.67 $ 1.61
Average shares outstanding 8,052,783 7,994,791
SELECTED BALANCE SHEET ITEMS AS OF SEPTEMBER 30
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DOLLARS IN THOUSANDS
2003 2002
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Customer accounts receivable $ 141,330 $ 138,851
Merchandise Inventories $ 65,344 $ 56,129
Total assets $ 339,896 $ 336,428
Total liabilities $ 80,091 $ 84,840
Stockholders' equity $ 259,805 $ 251,588
Total liabilities and stockholders' equity $ 339,896 $ 336,428