GDYS Goodys Family Clothing (MM)

KNOXVILLE, Tenn., Oct. 6 /PRNewswire-FirstCall/ -- Goody's Family Clothing, Inc. (NASDAQ:GDYS) today reported total sales of $93.5 million for the fiscal month of September 2005 (the five weeks ended October 1, 2005), a decrease of 0.8% from total sales of $94.3 million for the fiscal month of September 2004 (the five weeks ended October 2, 2004). Comparable store sales for September 2005 declined 5.5% compared with September 2004. Total sales for the first eight months of fiscal 2005 decreased 1.2% to $776.6 million from $785.9 million during the same period last year. Comparable store sales for the first eight months of fiscal 2005 declined 6.3% from the same period last year. "Sales for the month of September 2005 were negatively affected by hurricanes Katrina, Ophelia and Rita, as well as by unseasonably warm weather, which prevailed in our markets," commented Robert M. Goodfriend, Chairman and Chief Executive Officer. "These factors forced us to be more promotional than planned during the month in an effort to stimulate sales and reduce seasonal inventories. As a result, we expect to report a net loss for the third quarter of 2005 which is significantly greater than the net loss of $0.02 per diluted share reported for the third quarter of 2004. "Currently, there are six Goody's stores that remain closed as a result of the hurricanes," Goodfriend added. "One of these stores, located in Lake Charles, Louisiana, sustained limited damage and is currently closed due to a prolonged power outage. The Company expects this store to reopen in October 2005. Stores in Hammond and Houma, Louisiana; and Hattiesburg and Gulfport, Mississippi; are currently expected to reopen in November 2005. A store in West Orange, Texas, is expected to reopen in March 2006." The Company also announced the grand openings for two relocated stores being held today -- one each in Norton, Virginia, and Oxford, Mississippi. In addition, on October 20, 2005, the Company plans to open two new stores -- one each in Monroe, North Carolina, and Ponca City, Oklahoma. Additionally, the Company announced a revision to its previously released guidance for new store openings for fiscal 2006. The Company now expects to open nine new stores in 2006 versus previous guidance of ten. 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) variances for estimates in reserve accounts and selling, general and administrative expenses; (iii) the ability to reopen store locations in areas affected by Hurricanes Katrina and Rita; (iv) weather conditions; (v) the impact of competitors' pricing and store expansion; (vi) the timely availability of branded and private-label merchandise in sufficient quantities to satisfy customer demand; (vii) the effectiveness of advertising and promotional events; (viii) the timing, magnitude and costs of opening new stores; (ix) individual store performance, including new stores; (x) the general economic conditions within the Company's markets and an improvement in the overall retail environment; (xi) the absence of any unanticipated expenses; (xii) global political unrest including terrorism and war; and (xiii) trends affecting the Company's financial condition, results of operations or cash flows. 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 temporary closure of six stores during fiscal September 2005 due to hurricane damage, currently operates 368 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, +1-865-966-2000 Web site: http://www.goodysonline.com/

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