SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended October 30, 1994
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-724
PHILLIPS-VAN HEUSEN CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 13-1166910
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1290 Avenue of the Americas New York, New York 10104
(Address of principal executive offices) (Zip Code)
Registrant's telephone number (212) 541-5200
Indicate by check mark whether registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that registrant was
required to file such reports), and (2) has been subject to such filing
requirement for the past 90 days.
Yes X No
The number of outstanding shares of common stock, par value $1.00 per
share, of Phillips-Van Heusen Corporation as of November 28, 1994: 26,602,208
shares.
PHILLIPS-VAN HEUSEN CORPORATION
INDEX
PART I -- FINANCIAL INFORMATION
Independent Auditors Review Report.................................... 1
Consolidated Balance Sheets as of October 30, 1994 and
January 30, 1994...................................................... 2
Consolidated Statements of Income for the thirteen weeks and
thirty-nine weeks ended October 30, 1994 and October 31, 1993......... 3
Consolidated Statements of Cash Flows for the thirty-nine weeks
ended October 30, 1994 and October 31, 1993........................... 4
Notes to Consolidated Financial Statements............................ 5-6
Management's Discussion and Analysis of Results of Operations
and Financial Condition............................................... 7-10
PART II -- OTHER INFORMATION
ITEM 6 - Exhibits and Reports on Form 8-K............................. 11-12
Signatures............................................................ 13
Exhibit--Computation of Earnings per Share............................ 14
Exhibit--Acknowledgment of Independent Auditors....................... 15
Exhibit--Financial Data Schedule...................................... 16
Independent Auditors Review Report
Stockholders and Board of Directors
Phillips-Van Heusen Corporation
We have reviewed the accompanying condensed consolidated balance sheet of
Phillips-Van Heusen Corporation as of October 30, 1994, and the related
condensed consolidated statements of income and cash flows for the 13 and 39
week periods ended October 30, 1994 and October 31, 1993. These financial
statements are the responsibility of the Company's management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which will
be performed for the full year with the objective of expressing an opinion
regarding the financial statements taken as a whole. Accordingly, we do not
express such an opinion.
Based on our reviews, we are not aware of any material modifications that
should be made to the accompanying condensed consolidated financial statements
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Phillips-Van Heusen Corporation
as of January 30, 1994, and the related consolidated statements of income,
stockholders' equity, and cash flows for the year then ended (not presented
herein) and in our report dated March 17, 1994, we expressed an unqualified
opinion on those consolidated financial statements. In our opinion, the
information set forth in the accompanying condensed consolidated balance sheet
as of January 30, 1994, is fairly stated, in all material respects, in
relation to the consolidated balance sheet from which it has been derived.
ERNST & YOUNG LLP
New York, New York
November 17, 1994
-1-
Phillips-Van Heusen Corporation
Consolidated Balance Sheets
(In thousands, except share data)
UNAUDITED AUDITED
October 30, January 30,
1994 1994
ASSETS
Current Assets:
Cash, including cash equivalents of $28,713 and $66,064 $ 32,271 $ 68,070
Trade receivables, less allowances of $1,433 and $2,171 101,024 61,986
Other receivables 5,959 3,847
Inventories 290,372 269,871
Other, including deferred taxes of $5,727 17,964 14,928
Total Current Assets 447,590 418,702
Property, Plant and Equipment 128,098 109,506
Intangibles Applicable to Businesses Acquired 17,847 18,189
Other Assets, including deferred taxes of $4,608 7,951 8,374
$601,486 $554,771
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 51,673 $ 42,188
Accrued expenses 71,600 60,696
Accrued income taxes 9,941 6,027
Current portion of long-term debt 260 245
Total Current Liabilities 133,474 109,156
Long-Term Debt, less current portion 169,678 169,934
Other Liabilities 34,468 28,882
Stockholders' Equity:
Preferred Stock, par value $100 per share; 150,000
shares authorized, no shares outstanding
Common Stock, par value $1 per share; 100,000,000 shares
authorized; shares issued 26,601,908 and 33,190,750 26,602 33,191
Additional Capital 111,176 118,360
Retained Earnings 126,088 269,055
263,866 420,606
Less: 6,728,576 shares of common stock held
in treasury as of January 30, 1994--at cost 0 (173,807)
Total Stockholders' Equity 263,866 246,799
$601,486 $554,771
See accompanying notes.
-2-
Phillips-Van Heusen Corporation
Consolidated Statements of Income
Unaudited
(In thousands, except per share amounts)
Thirteen Weeks Thirty-Nine Weeks
Ended Ended
October 30, October 31, October 30, October 31,
1994 1993 1994 1993
Net sales $379,406 $357,389 $902,074 $843,329
Cost of goods sold 258,117 233,117 606,862 548,146
Gross profit 121,289 124,272 295,212 295,183
Selling, general and administrative expenses 91,484 83,674 255,314 238,033
Income before interest and taxes 29,805 40,598 39,898 57,150
Interest expense, net 3,377 4,613 10,061 13,111
Income before taxes 26,428 35,985 29,837 44,039
Income taxes 8,578 11,465 9,783 13,970
Net income 17,850 24,520 20,054 30,069
Net income per share $ 0.66 $ 0.91 $ 0.74 $ 1.11
Cash dividends per share $ 0.0375 $ 0.0375 $ 0.1125 $ 0.1125
See accompanying notes.
-3-
Phillips-Van Heusen Corporation
Consolidated Statements of Cash Flows
Unaudited
(In Thousands)
Thirty-Nine Weeks Ended
October 30, October 31,
1994 1993
OPERATING ACTIVITIES:
Net Income $20,054 $ 30,069
Adjustments to reconcile net income to net
cash used by operating activities:
Depreciation and amortization 17,273 13,608
Other-net (3,135) (1,670)
Changes in operating assets and liabilities:
Receivables (41,150) (39,689)
Inventories (20,501) (48,592)
Accounts payable and accrued expenses 22,692 20,044
Other-net (3,036) (581)
Net Cash Used By Operating Activities (7,803) (26,811)
INVESTING ACTIVITIES:
Plant and equipment acquired (37,233) (35,601)
Contributions from landlords 10,561 7,683
Other-net 1,908 3,040
Net Cash Used By Investing Activities (24,764) (24,878)
FINANCING ACTIVITIES:
Proceeds from revolving line of credit and long-
term borrowings 41,600
Payments on revolving line of credit and long-
term borrowings (245) (43,347)
Exercise of stock options 996 1,435
Payment of dividends (3,983) (3,912)
Net Cash Used By Financing Activities (3,232) (4,224)
DECREASE IN CASH (35,799) (55,913)
Cash at beginning of period 68,070 77,063
Cash at end of period $32,271 $ 21,150
See accompanying notes.
-4-
Phillips-Van Heusen Corporation
Notes To Consolidated Financial Statements
(In Thousands)
GENERAL
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information. Accordingly, they do not contain all
disclosures required by generally accepted accounting principles for complete
financial statements. Reference should be made to the annual financial
statements, including the footnotes thereto, included in the Company's Annual
Report to Stockholders for the year ended January 30, 1994.
The results of operations for the thirteen and thirty-nine weeks ended October
30, 1994 and October 31, 1993 are not necessarily indicative of those for a
full fiscal year because of seasonal factors. The data contained in these
financial statements are unaudited and are subject to year-end adjustments;
however, in the opinion of management, all known adjustments (which consist
only of normal recurring accruals) have been made to present fairly the
consolidated operating results for the unaudited periods.
Certain reclassifications have been made for the thirteen and thirty-nine
weeks ended October 31, 1993 to present that information on a basis consistent
with the thirteen and thirty-nine weeks ended October 30, 1994.
INVENTORIES
Inventories are summarized as follows:
October 30, January 30,
1994 1994
Raw materials $ 16,375 $ 16,710
Work in process 24,054 13,941
Finished goods 249,943 239,220
Total $290,372 $269,871
Inventories are stated at the lower of cost or market. Cost for the apparel
business is determined principally using the last-in first-out method (LIFO).
Cost for the footwear business is determined using the first-in first-out
method (FIFO). Inventories would have been $14,691 and $11,500 higher than
reported at October 30, 1994 and January 30, 1994, respectively, if the FIFO
method of inventory accounting had been used for the apparel business.
The determination of cost of sales and inventories under the LIFO method can
only be made at the end of each fiscal year based on inventory cost and
quantities on hand. Interim LIFO determinations are based on management's
estimates of expected year-end inventory levels and costs. Such estimates are
subject to revision at the end of each quarter. Since estimates of future
inventory levels and costs are subject to external factors, interim financial
results are subject to year-end LIFO inventory adjustments.
-5-
SEGMENT DATA
The Company operates in two industry segments: (i) apparel - the manufacture,
procurement for sale and marketing of a broad range of men's and women's
apparel to traditional wholesale accounts as well as through Company-owned
retail stores, and (ii) footwear - the manufacture, procurement for sale and
marketing of a broad range of men's, women's and children's shoes to
traditional wholesale accounts as well as through Company-owned retail stores.
Operating income represents net sales less operating expenses. Excluded from
operating results of the segments are interest expense, net, corporate
expenses and income taxes.
Thirteen Weeks Thirty-Nine Weeks
Ended Ended
October 30, October 31, October 30, October 31,
1994 1993 1994 1993
Net sales-apparel $271,524 $253,005 $621,762 $571,016
Net sales-footwear 107,882 104,384 280,312 272,313
Total net sales $379,406 $357,389 $902,074 $843,329
Operating income-apparel $ 20,076 $ 30,369 $ 22,379 $ 36,164
Operating income-footwear 13,086 14,215 25,441 29,755
Total operating income 33,162 44,584 47,820 65,919
Corporate expenses (3,357) (3,986) (7,922) (8,769)
Interest expense, net (3,377) (4,613) (10,061) (13,111)
Income before taxes $ 26,428 $ 35,985 $ 29,837 $ 44,039
-6-
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION
RESULTS OF OPERATIONS
Thirteen Weeks Ended October 30, 1994 Compared to Thirteen Weeks Ended
October 31, 1993
APPAREL
Net sales of the Company's apparel segment in the third quarter were $271.5
million in 1994 and $253.0 million last year, an increase of approximately
7.3%. Growth of the Company's retail operations and the expanded offering of
apparel in the Company's Bass stores accounted for this increase.
Operating income of the apparel segment decreased to $20.1 million in the
third quarter of 1994 from $30.4 million in the third quarter of 1993. The
7.3% increase in sales was offset by significant costs associated with the
introduction of the Company's new "Wrinkle-Free" dress shirts and reduced
margins from extensive promotional selling in the Company's retail stores. In
addition, the third quarter LIFO charge was $1.0 million in 1994 compared to
$0.3 million last year.
FOOTWEAR
Net sales of the Company's footwear segment, conducted through its Bass
division, were $107.9 million in the third quarter of 1994 and $104.4 million
last year, an increase of approximately 3.4%. Growth of the Company's retail
operations and an increase in sales to traditional wholesale customers
accounted for this increase.
Operating income of the footwear segment decreased to $13.1 million in the
third quarter of 1994 from $14.2 million in the third quarter of 1993.
Promotional selling in the Company's retail stores and reduced margins on
sales to traditional wholesale customers accounted for this decrease.
INTEREST EXPENSE
Net interest expense was $3.4 million in the third quarter of 1994 compared
with $4.6 million last year. This decrease resulted from the Company's
issuance of $100 million of 7.75% Debentures due 2023 in the fourth quarter of
1993 and the use of the net proceeds to redeem higher cost long-term debt.
INCOME TAXES
Income tax was estimated at rates of 32.5% and 32.8% for the third quarter and
year of 1994 compared with last year's rates of 31.9% and 32.0% for the third
quarter and year, respectively.
-7-
CORPORATE EXPENSES
Corporate expenses were $3.4 million in the third quarter of 1994 compared to
$4.0 million in 1993. A modest increase in Corporate expenses was offset by a
reduction to the Company's unfunded supplemental savings plan liability.
Thirty-Nine Weeks Ended October 30, 1994 Compared to Thirty-Nine Weeks Ended
October 31, 1993
APPAREL
Net sales of the Company's apparel segment were $621.8 million during the
first nine months of 1994, an increase of approximately 8.9% from the prior
year's $571.0 million. Growth of the Company's retail operations and the
expanded offering of apparel in the Company's Bass stores accounted for this
increase.
Operating income of the apparel segment was $22.4 million in the nine month
period, compared to $36.2 million in the prior year. The 8.9% increase in
sales was offset by significant costs associated with the introduction of the
Company's new "Wrinkle-Free" dress shirts and reduced margins from extensive
promotional selling in the Company's retail stores. In addition, the current
year includes a LIFO charge of $3.2 million compared with a charge of $1.8
million in the prior year.
FOOTWEAR
Net sales of the Company's footwear segment were $280.3 million, an increase
of approximately 2.9% over the prior year's $272.3 million. Growth of the
Company's retail operations and an increase in sales to traditional wholesale
customers accounted for this increase.
Operating income of the footwear segment decreased approximately 14.5% to
$25.4 million compared with $29.8 million in the prior year. Promotional
selling in the Company's retail stores and reduced margins on sales to
traditional wholesale customers accounted for this decrease.
INTEREST EXPENSE
Net interest expense was $10.1 million in the first nine months of 1994
compared with $13.1 million last year. This decrease resulted from the
Company's issuance of $100 million of 7.75% Debentures due 2023 in the fourth
quarter of 1993 and the use of the net proceeds to redeem higher cost long-
term debt.
INCOME TAXES
Income tax was estimated at a rate of 32.8% for the first three quarters and
year of 1994 compared with last year's rates of 31.7% and 32.0% for the first
three quarters and year, respectively.
-8-
CORPORATE EXPENSES
Corporate expenses were $7.9 million in the first three quarters of 1994
compared to $8.8 million in 1993. A modest increase in Corporate expenses was
offset by a reduction to the Company's unfunded supplemental savings plan
liability.
SUBSEQUENT EVENTS
Subsequent to October 30, 1994, the Company formalized and adopted a plan to
realign and restructure certain managerial and administrative functions
associated with its retail apparel operations. The Company estimates that the
cost to execute this plan is approximately $1.5 million, principally relating
to severance benefits. In the fourth quarter, certain other events have
occured which will allow the Company to utilize previously established
restructuring reserves to cover these costs. As part of its ongoing focus
on managing expenses, the Company is evaluating its operating
structure and processes for opportunities to improve efficiency and reduce
costs.
SEASONALITY
The Company's business is seasonal, with higher sales and income during its
third and fourth fiscal quarters. This reflects primarily the Company's
significantly higher sales and operating margins during the Company's two peak
retail selling seasons: the first running from the start of the summer
vacation period in late May and continuing through September; the second being
the Christmas selling season beginning with the weekend following Thanksgiving
and continuing through the week after Christmas.
Also contributing to the strength of the third fiscal quarter is the high
volume of fall shipments to customers of each wholesale division. Fall
shipments are larger in volume and profitability than first fiscal quarter
spring shipments. The slower spring selling season at wholesale combined with
retail seasonality makes the first fiscal quarter particularly weak. As the
Company continues to expand its retail business, these seasonal differences
are expected to become more significant.
LIQUIDITY AND CAPITAL RESOURCES
The seasonal nature of the Company's business typically requires the use of
cash to fund a build up in the Company's inventory in the first half of each
fiscal year. During the third and fourth quarters, the Company's higher level
of sales tends to reduce its inventory and generate cash from operations.
Cash used by operations in the first three quarters totalled $7.8 million in
1994 and $26.8 million last year. This improvement was achieved as a result
of the Company's focus on inventory management. Although the Company
anticipates double-digit percentage sales growth in the fourth quarter of
1994, inventories are 5.5% lower at the end of the current quarter compared to
the end of last year's third quarter.
-9-
For short-term liquidity, the Company has a revolving credit agreement under
which the Company may, at its option, borrow and repay amounts up to a maximum
of $85 million, except that for the Company's third quarter, during which
period its cash needs peak, the maximum amount available to the Company is
$100 million. The Company does not presently have any outstanding borrowings
from its revolving credit facility and does not contemplate borrowing from
this facility in the immediate future.
The Company's ability to generate earnings has enabled it to reduce its net
debt (total debt less invested cash) as a percentage of net capital (net debt
plus stockholders' equity) to 34.9% at the end of the current quarter compared
to 40.9% at the end of last year's third quarter.
-10-
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) The following exhibits are included herein:
4.1 Specimen of Common Stock certificate (incorporated by reference to
Exhibit 4 to the Company's Annual Report on Form 10-K for the
fiscal year ended January 31, 1981).
4.2 Preferred Stock Purchase Rights Agreement (the "Rights Agreement"),
dated June 10, 1986 between PVH and The Chase Manhattan Bank, N.A.
(incorporated by reference to Exhibit 3 to the Company's Quarterly
Report as filed on Form 10-Q for the period ended May 4, 1986).
4.3 Amendment to the Rights Agreement, dated March 31, 1987 between PVH
and The Chase Manhattan Bank, N.A. (incorporated by reference to
Exhibit 4(c) to the Company's Annual Report on Form 10-K for the
year ended February 2, 1987).
4.4 Supplemental Rights Agreement and Second Amendment to the Rights
Agreement, dated as of July 30, 1987, between PVH and The Chase
Manhattan Bank, N.A. (incorporated by reference to Exhibit (c)(4)
to the Company's Schedule 13E-4, Issuer Tender Offer Statement,
dated July 31,1987).
4.5 Credit Agreement, dated as of December 16, 1993, among PVH, Bankers
Trust Company, The Chase Manhattan Bank, N.A., Citibank, N.A., The
Bank of New York, Chemical Bank and Philadelphia National Bank, and
Bankers Trust Company, as agent (incorporated by reference to
Exhibit 4.5 to the Company's Annual Report on Form 10-K for the
fiscal year ended January 30, 1994).
4.6 Note Agreement, dated October 1, 1992, among PVH, The Equitable
Life Assurance Society of the United States, Equitable Variable
Life Insurance Company, Unum Life Insurance Company of America,
Nationwide Life Insurance Company, Employers Life Insurance Company
of Wausau and Lutheran Brotherhood (incorporated by reference to
Exhibit 4.21 to the Company's Annual Report on Form 10-K for the
fiscal year ended January 31, 1993).
4.7 Indenture, dated as of November 1, 1993, between PVH and The Bank
of New York, as Trustee (incorporated by reference to Exhibit 4.01
to the Company's Registration Statement on Form S-3 (Reg. No. 33-
50751) filed on October 26, 1993).
10.1 1987 Stock Option Plan, including all amendments through March 30,
1993 (incorporated by reference to Exhibit 10.2 to the Company's
Annual Report on Form 10-K for the fiscal year ended January 30,
1994).
10.2 1973 Employees' Stock Option Plan (incorporated by reference to
Exhibit 1 to the Company's Registration Statement on Form S-8 (Reg.
No. 2-72959) filed on July 15, 1981).
-11-
10.3 Supplement to 1973 Employees' Stock Option Plan (incorporated by
reference to the Company's Prospectus filed pursuant to Rule 424(c)
to the Registration Statement on Form S-8 (Reg. No. 2-72959) filed
on March 31, 1982).
10.4 Phillips-Van Heusen Corporation Special Severance Benefit Plan
(incorporated by reference to the Company's Report on Form 8-K
filed on January 16, 1987).
10.5 Phillips-Van Heusen Corporation Capital Accumulation Plan
(incorporated by reference to the Company's Report on Form 8-K
filed on January 16, 1987).
10.6 Phillips-Van Heusen Corporation Amendment to Capital Accumulation
Plan (incorporated by reference to Exhibit 10(n) to the Company's
Annual Report on Form 10-K for the fiscal year ended February 2,
1987).
10.7 Form of Agreement amending Phillips-Van Heusen Corporation Capital
Accumulation Plan with respect to individual participants
(incorporated by reference to Exhibit 10(1) to the Company's
Annual Report on Form 10-K for the fiscal year ended January 31,
1988).
10.8 Phillips-Van Heusen Corporation Supplemental Defined Benefit Plan,
dated January 1, 1991, as amended and restated on June 2, 1992
(incorporated by reference to Exhibit 10.10 to the Company's Annual
Report on Form 10-K for the fiscal year ended January 31, 1993).
10.9 Phillips-Van Heusen Corporation Supplemental Savings Plan, dated as
of January 1, 1991 and amended and restated as of January 1, 1992
(incorporated by reference to Exhibit 10.29 to the Company's Annual
Report on Form 10-K for the fiscal year ended February 2, 1992).
11. Computation of Earnings per Share.
15. Acknowledgement of Independent Auditors.
27. Financial Data Schedule.
(b) Reports on Form 8-K
No reports have been filed on Form 8-K during the quarter covered by this
report.
-12-
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 thereunto duly authorized.
PHILLIPS-VAN HEUSEN CORPORATION
Registrant
December 9, 1994 /s/ Emanuel Chirico
Emanuel Chirico, Controller
Vice President and
Chief Accounting Officer
-13-
Exhibit 11
PHILLIPS-VAN HEUSEN CORPORATION
COMPUTATION OF EARNINGS PER SHARE
(In thousands, except per share amounts)
Thirteen Weeks Thirty-Nine Weeks
Ended Ended
Oct. 30, Oct. 31, Oct. 30, Oct. 31,
1994 1993 1994 1993
Primary:
Net income $17,850 $24,520 $20,054 $30,069
Common shares and equivalents:
Weighted average number of shares outstanding 26,572 26,150 26,549 26,083
Shares issuable upon exercise of dilutive
stock options, net of shares assumed
to be repurchased (at the average period
market price) out of proceeds obtained
therefrom 521 940 654 982
Total common shares and equivalents 27,093 27,090 27,203 27,065
Net income per share and equivalents $ 0.66 $ 0.91 $ 0.74 $ 1.11
Fully diluted:
Net income $17,850 $24,520 $20,054 $30,069
Total common shares and
equivalents (see above) 27,093 27,090 27,203 27,065
Additional shares issuable upon
the exercise of dilutive stock
options, net of shares assumed to be
repurchased (at the greater of average
period or period end market price) 0 56 0 18
Total common shares and equivalents
assuming full dilution 27,093 27,146 27,203 27,083
Net income per share and equivalents (1) (1) (1) (1)
(1) Amounts not shown since results are not materially different from primary
net income per share.
-14-
Exhibit 15
November 17, 1994
Stockholders and Board of Directors
Phillips-Van Heusen Corporation
We are aware of the incorporation by reference in the Registration Statement
(Form S-8, No. 33-59602), Registration Statement (Form S-8, No. 33-38698),
Post-Effective amendment No. 1 to the Registration Statement (Form S-8, No.
33-24057), Post-Effective amendment No. 2 to the Registration Statement (Form
S-8, No. 2-73803), Post-Effective amendment No. 4 to the Registration
Statement (Form S-8, No. 2-72959), Post-Effective amendment No. 6 to the
Registration Statement (Form S-8, No. 2-64564), and Post-Effective amendment
No. 13 to the Registration Statement (Form S-8, No. 2-47910), of Phillips-Van
Heusen Corporation of our report dated November 17, 1994 relating to the
unaudited condensed consolidated interim financial statements of Phillips-Van
Heusen Corporation which are included in its Form 10-Q for the three and nine
month periods ended October 30, 1994.
Pursuant to Rule 436(c) of the Securities Act of 1933, our report is not a
part of the registration statements or post-effective amendments prepared or
certified by accountants within the meaning of Section 7 or 11 of the
Securities Act of 1933.
ERNST & YOUNG LLP
New York, New York
-15-
5
9-MOS
JAN-29-1995
OCT-30-1994
32,271
0
108,416
(1,433)
290,372
447,590
128,098
0
601,486
133,474
169,678
26,602
0
0
237,264
601,486
902,074
902,074
606,862
606,862
255,314
0
10,061
29,837
9,783
0
0
0
0
20,054
.74
.74
Property, plant and equipment is presented net of accumulated depreciation.
Provision for doubtful accounts is included in other costs and expenses.
