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): April 20, 2005
Blair Corporation
(Exact name of registrant as specified in its charter)
Delaware 001-00878 25-0691670
(State or other (Commission File No.) (I.R.S. Employer
Jurisdiction of Identification No.)
incorporation)
220 Hickory Street, Warren, Pennsylvania 16366-0001
(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)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On April 20, 2005, Blair Corporation issued a press release announcing
its earnings for the three months ended March 31, 2005 and its continued
exploration of a sale of its consumer finance portfolio. The information
contained in the press release, which is attached as Exhibit 99.1 to this
Form 8-K, is incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.
The information contained in the press release is furnished pursuant
to Item 7.01, "Regulation FD Disclosure."
Item 9.01. Financial Statements and Exhibits.
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits
Exhibit 99.1.Press Release.
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: April 20, 2005 Blair Corporation
By: /S/ JOHN E. ZAWACKI
-------------------------------------
John E. Zawacki
President and Chief Executive Officer
By: /S/ BRYAN J. FLANAGAN
-------------------------------------
Bryan J. Flanagan
Senior Vice President and Chief
Financial Officer
EXHIBIT 99.1
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 FIRST QUARTER RESULTS
WARREN, Pa., (April 20, 2005) -- 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 first quarter ended March 31, 2005.
Net sales for the first quarter ended March 31,2005 were $107.6 million compared
to $128.6 million reported for the first quarter ended March 31, 2004.
Net income for the first quarter ended March 31, 2005 was $650,000, or $0.08 per
basic and diluted share, compared to $571,000 or $0.07 per basic and diluted
share, reported for the first quarter of 2004.
The $21 million reduction in net sales for the first quarter of 2005 was driven
by a decrease of approximately $7 million resulting from the previously
announced shut down of the Crossing Pointe catalog that was completed in March
2005. In addition, $5 million of the net sales reduction was due to reduced
prospecting for non-core customers, $2 million was associated with more
stringent credit standards, and the balance was attributable to a general
softness in response rates. The reduction in prospecting was aligned with
Blair's business decision to specifically target catalog mailings to the
Company's core customer base. The Company believes softness in response rates
is attributable, in part, to changing economic conditions, including higher home
heating and gasoline costs driven by the rise in oil prices.
Net income results for the quarter reflect the discontinuance of the
Crossing Pointe catalog title and a continuing refocus on Blair's core business,
both resulting in the planned elimination of unprofitable sales. In addition,
net income was also affected by Blair's implementation of stricter credit
requirements, which decreased the provision for doubtful accounts.
Cost of goods sold as a percentage of net sales for the first quarter of 2005
was 49.1% unchanged from 49.1% for the first quarter of 2004. This percentage
remained constant as increased outbound postage costs were offset by a continued
reduction in the cost of merchandise.
"Blair generated a slight increase in profitability despite lower sales for the
first quarter by adhering to its strategic plan of focusing on its core customer
base, lowering overall operating costs and reducing unprofitable sales," said
Bryan J. Flanagan, Senior Vice President and Chief Financial Officer. "In
addition, by closing down Crossing Pointe, Blair has eliminated the financial
burden of costs and provisions for doubtful accounts associated with that
catalog title and, as a result, is better positioned to increase profitability
in the future," concluded Mr. Flanagan.
Blair's e-commerce channel generated $25 million in gross sales demand for the
first quarter, compared to $24 million for the first quarter of 2004. The
year-over-year increase was achieved despite significantly lower Crossing Pointe
e-commerce gross sales demand.
Finally, as previously announced in the Company's third quarter 2004 earnings
press release, Blair continues to explore the sale of its consumer finance
receivable portfolio to a third-party financial institution.
"Blair remains committed to increasing profitability and enhancing shareholder
value," stated John E. Zawacki, President and Chief Executive Officer of Blair.
"We have undertaken a series of initiatives to achieve these goals including
focusing on our core business and efforts to increase operational efficiency.
We are confident that the further development and implementation of these and
other strategic plans will enhance our position as the premier direct marketer
to value-conscious consumers," Mr. Zawacki concluded.
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 sites www.blair.com and www.irvinepark.com. Blair Corporation employs
over 2,000 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 approximately $500 million, is publicly traded on the
American Stock Exchange (Amex: BL).
This release contains certain statements, including without limitation,
statements containing the words "believe," "plan," "expect," "anticipate,"
"strive," and words of similar import 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, 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--
BLAIR CORPORATION
COMPARATIVE OPERATING HIGHLIGHTS
(UNAUDITED)
(DOLLARS IN THOUSANDS)
For the Three Months Ended March 31
2005 2004
---- ----
Net sales $107,558 $ 128,642
Income before income taxes 1,022 920
Income taxes 372 349
Net income 650 571
Basic / diluted earnings per share $0.08 / $0.08 $0.07 / $0.07
Weighted average basic shares outstanding 8,176,914 8,051,124
Weighted average diluted shares outstanding 8,310,410 8,112,181
Selected Balance Sheet Items as of March 31
2005 2004
---- ----
Customer accounts receivable, net $135,911 $148,762
Inventories $ 80,856 $ 79,827
Total assets $345,292 $344,777
Total liabilities $ 62,729 $ 65,991
Stockholders' equity $282,563 $268,786
Total liabilities and stockholders' equity $345,292 $334,777