GDYS Goodys Family Clothing (MM)

Goody's Family Clothing Announces May Sales KNOXVILLE, Tenn., June 2 /PRNewswire-FirstCall/ -- Goody's Family Clothing, Inc. (NASDAQ:GDYS) today reported total sales of $95.9 million for the fiscal month of May 2005 (the four weeks ended May 28, 2005), a decrease of 3.5% from total sales of $99.4 million for the fiscal month of May 2004 (the four weeks ended May 29, 2004). Comparable store sales for May 2005 decreased 9.1% from May 2004. Total sales for the first four months of fiscal 2005 decreased 3.4% to $388.6 million from $402.3 million during the same period last year. Comparable store sales for the first four months of fiscal 2005 decreased 8.4% from the same period last year. "Our business continued to suffer in May 2005, even though we continued to be more promotional than last year and plan," commented Robert M. Goodfriend, Chairman and Chief Executive Officer. "We missed some fashion trends in all of our women's areas, which affected sales throughout the store. Also, we planned our inventory levels too low in certain other areas of the Company which further affected our business. We expect these issues will be resolved by the back-to-school selling season, which begins in mid-July. Furthermore, a shift in advertising dollars from our television broadcast schedule to radio in the first half of this year has not been successful. Corrective action has been taken and we expect to see positive results beginning in July. Finally, inventory levels on a per-square-foot basis at the end of May 2005 were lower than at the end of May 2004, as planned." The Company expects that comparable store sales will increase in the low- single digits for the period beginning in July through the end of the fiscal year, when compared to the same period in the prior year. However, given the negative comparable store sales results for the first four fiscal months, the Company now believes comparable store sales for fiscal 2005, as a whole, will decrease in the low-single digits. Unless there is significant improvement in sales and margins for the remainder of the quarter, the Company expects second quarter results to be lower than the $0.04 per diluted share reported for the second quarter last year. Actual results may vary from this revised guidance. This press release contains certain forward-looking statements which are based upon current expectations, business plans and estimates and involve material risks and uncertainties including, but not limited to: (i) customer demand and trends in the apparel and retail industry and to the acceptance of the Company's merchandise offerings, including the Company's private-label and exclusive lines; (ii) the ability to reverse the negative trend in comparable-store sales; (iii) weather conditions; (iv) the ability to predict fashion trends; (v) the effectiveness of advertising and promotional events; (vi) the ability to avoid excess promotional pricing; (vii) the effectiveness of merchandising, advertising, pricing, and operational strategies; (viii) the ability to achieve business plan targets; (ix) the timely availability of branded and private-label merchandise in sufficient quantities to satisfy customer demand; (x) the ability to achieve business plans for the Duck Head line, which call for continued growth; (xi) the impact of competitors' pricing and store expansion; (xii) individual store performance, including new stores; (xiii) the ability to enter into leases for new store locations; (xiv) the timing, magnitude and costs of opening new stores; (xv) growth of the Company's store base; (xvi) relations with vendors, factors and employees; (xvii) the general economic conditions within the Company's markets, including gasoline and energy prices, and an improvement in the overall retail environment; (xviii) global political unrest, including terrorism and war; (xix) the continued availability of adequate credit support from vendors and factors; (xx) the Company's compliance with loan covenants and the availability of sufficient eligible collateral for borrowing; (xxi) the unanticipated needs for additional capital expenditures; (xxii) trends affecting the Company's financial condition, results of operations or cash flows; (xxiii) the success of the Company's information technology systems; (xxiv) the success of the Company's e-commerce initiative; and (xxv) the outcome of pending litigation. Readers are cautioned that any such forward-looking statement is not a guarantee of future performance and involves risks and uncertainties, and that actual results may differ materially from those projected in the forward- looking statements. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company's financial results may be found in the Company's 2004 Annual Report on Form 10-K filed with the Securities and Exchange Commission. Certain of such filings may be accessed through the Company's web site, http://www.goodysonline.com/, then choose "SEC Filings." Goody's, headquartered in Knoxville, Tennessee, is a retailer of moderately priced family apparel. The Company currently operates 367 stores in the 20 states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia. DATASOURCE: Goody's Family Clothing, Inc. CONTACT: Edward R. Carlin, Chief Financial Officer of Goody's Family Clothing, Inc., +1-865-966-2000 Web site: http://www.goodysonline.com/

Copyright