GDYS Goodys Family Clothing (MM)

KNOXVILLE, Tenn., Sept. 1 /PRNewswire-FirstCall/ -- Goody's Family Clothing, Inc. (NASDAQ:GDYS) today reported total sales of $98.7 million for the fiscal month of August 2005 (the four weeks ended August 27, 2005), an increase of 4.9% from total sales of $94.1 million for the fiscal month of August 2004 (the four weeks ended August 28, 2004). Comparable store sales for August 2005 decreased 0.3% compared with August 2004. Total sales for the first seven months of fiscal 2005 decreased 1.2% to $683.1 million from $691.6 million for the same period last year. Comparable store sales for the first seven months of fiscal 2005 decreased 6.4% from the same period last year. "Our sales for the month were driven, in part, by more promotional pricing than in August of last year," commented Robert M. Goodfriend, Chairman and Chief Executive Officer. "Inventory levels on a per-square-foot basis remain lower at the end of August this year compared with the year-earlier period." Goodfriend added, "Hurricane Katrina caused 14 store closures in Alabama, Louisiana, and Mississippi after the August month-end, of which six are still closed. At this time, we cannot predict how long these stores will remain closed. Severe wind, rain, and intermittent power outages affected approximately 40 other stores to varying degrees. Until civil authorities reopen restricted areas and telephone communication is restored, we are unable to assess the full impact of the storm on results of operations or quantify the property damage that may have occurred." The Company now expects to open approximately 31 new stores, relocate or remodel nine stores, and close approximately six stores during fiscal 2005. The Company's previous guidance had been that it would open 29 new stores, relocate or remodel ten stores, and close five stores during fiscal 2005. 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) the ability to negotiate acceptable lease terms for new store locations and existing store locations to be remodeled or relocated; (ii) individual store performance, including new stores; (iii) competition, including the impact of competitors' store expansion; (iv) weather conditions; (v) global political unrest, including terrorism and war; (vi) the general economic conditions within the Company's markets; (vii) trends affecting the Company's financial condition, results of operations or cash flows; and, (viii) the ability to achieve business plan targets. 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, and with the closure of one store at the end of August 2005, currently operates 374 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/

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