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): July 21, 2003
Blair Corporation
(Exact name of registrant as specified in its charter)
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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. Final Statements, Pro Forma Final 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 July 21, 2003, Blair Corporation issued a press release announcing
its earnings for the three months and six months ended June 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: July 21, 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 SECOND QUARTER RESULTS
WARREN, Pa., (July 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 second quarter and six months ended
June 30, 2003.
Net sales for the second quarter ended June 30, 2003 were $154,344,950 compared
to $147,513,331 reported for the second quarter ended June 30, 2002.
Net income for the second quarter ended June 30, 2003 was $4,100,653, or $0.51
per basic and diluted share, compared to net income of $7,032,678, or $0.88 per
basic and diluted share, reported for the second quarter last year.
Net sales for the six months ended June 30, 2003 were $291,358,494 compared to
$282,774,786 reported for the first six months ended June 30, 2002.
Net income for the six months ended June 30, 2003 was $4,600,842, or $0.57 per
basic and diluted share compared to $12,633,809, or $1.58 per basic and diluted
share, reported for the six months last year.
The reduction in second quarter net income was primarily attributable to an
increase in both cost of goods sold and advertising expenses.
Cost of goods sold as a percentage of net sales increased to 47.1% for the
second quarter of 2003 from 46.7% in the comparable quarter last year. The rise
in the cost of goods sold of $617,000 primarily reflects promotional initiatives
undertaken to manage inventory. In addition, the cost of goods sold was impacted
by increased inbound airfreight expenses and shipping costs.
Advertising expenses as a percent of net sales rose to 26.9% from 25.0%. The
increase of $2.9 million is attributable to a strategic increase in catalog
mailings to current and prospective customers.
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General & administrative costs as a percent of net sales rose slightly to 22.6%
from 22.5%. This increase of $154,000 included costs associated with the
completion of the enhancements and automation of Blair's fulfillment
capabilities. With this initiative fully operational at the close of the
quarter, Blair believes it will have increased efficiency and productivity and a
reduction in overall operating costs.
"Blair continues to undertake initiatives to generate sales and improve
inventory management. Liquidity and cash availability have been maintained, and
inventory levels remain in check. We have maintained our strong balance sheet
and are taking the necessary steps to meet near term challenges while better
positioning the Company to achieve long term growth," said Bryan J. Flanagan,
Senior Vice President and Chief Financial Officer.
John E. Zawacki, President and Chief Executive Officer said, "It is encouraging
to note that Blair achieved an increase in sales despite very difficult economic
and industry conditions. The ongoing slowdown in consumer spending continues to
impact the retail and direct marketing industries."
"Blair is expanding its core businesses and developing growth opportunities. Our
Crossing Pointe catalog and E-commerce initiatives are increasing revenue and
growing our customer files. Our Blair.com E-commerce channel generated $36
million in gross demand in the first six months of 2003 as compared to $27.4
million for the like period a year ago. Gross demand for Crossing Pointe rose
$4.6 million to $35.7 million for the first half of 2003 when compared to the
same 2002 period. Additionally, the Company has recently announced the formation
of Allegheny Trail Corporation, a wholly-owned subsidiary. This business will be
targeted primarily at outdoor sporting goods and recreational retailers and will
offer a core product line of men's and women's outdoor apparel basics.
We are focused on the implementation of our strategic plan to increase sales and
market share in these challenging times. 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 array of
women's and men's apparel and home products, primarily through direct mail
merchandising as well as its Web site, www.blair.com and other Web sites. Blair
Corporation employs over 2,700 people and operates facilities in Erie, Franklin
and Grove City, Pennsylvania as well as 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
(UNAUDITED)
For the Three Months Ended June 30
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2003 2002
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Net sales $154,344,950 $147,513,331
Income before income taxes 6,632,653 10,982,678
Income taxes 2,532,000 3,950,000
Net income 4,100,653 7,032,678
Basic and diluted earnings per share $0.51 $0.88
Average shares outstanding 8,056,104 7,979,883
For the Six Months Ended June 30
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2003 2002
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Net sales $291,358,494 $282,774,786
Income before income taxes 7,426,842 19,642,809
Income taxes 2,826,000 7,009,000
Net income 4,600,842 12,633,809
Basic and diluted earnings per share $ 0.57 $ 1.58
Average shares outstanding 8,050,201 7,975,591
SELECTED BALANCE SHEET ITEMS AS OF JUNE 30
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2003 2002
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Customer accounts receivable $146,702,292 $146,270,128
Inventories $ 64,208,390 $ 57,357,569
Total assets $327,021,829 $329,633,935
Total liabilities $ 66,935,666 $ 77,144,362
Stockholders' equity $260,086,163 $252,489,573
Total liabilities and stockholders' equity $327,021,829 $329,633,935