Hart Stores reports second quarter results

SYMBOL: HIS (TSXV)

www.hartstores.com

LAVAL, QC, Sept. 23, 2014 /CNW Telbec/ - Hart Stores Inc. (TSXV: HIS) announces its financial results today for the second quarter ended August 3, 2014.

For the second quarter, sales reached $20.4 million compared to $21.9 million for the same period in the previous year. Comparable store sales decreased by 6.7% over the same period in the previous year. The Company reported a net loss of $860,000 or $0.06 per share compared to net earnings of $645,000 or $0.05 per share for the same period in the previous year. The decrease in net earnings in the second quarter was mainly the result of a non-recurring insurance recovery of $1.2 million in the second quarter last year.

For the six month period ended August 3, 2014, sales reached $35.3 million compared to $38.2 million for the comparable period in the previous year. Comparable store sales decreased by 7.7% over the same period in the previous year. The Company reported a net loss of $3,879,000 or $0.28 per share for this period compared to a net loss of $2,506,000 or $0.18 per share for the same period last year. The decrease in net earnings in the six month period was mainly the result of liquidation store activities and a non-recurring insurance recovery of $1.2 million in the second quarter last year.

In September 2014, the Company made a $500,000 payment to the unsecured creditors as scheduled under the CCAA Plan of Arrangement.  As of September 2014, $4.5 million of the total $6.0 million payments agreed under the terms of the Plan of Arrangement have been paid.

"During the quarter, several initiatives began, including the conversion of six existing stores to liquidation outlets.  In addition, a new store was opened in Beresford, New Brunswick late in the quarter" stated Mr. Robert Farah, the Company's President and COO. "Although the current financial results are weaker than expected, we are confident that we are implementing the appropriate initiatives to achieve our full potential".

Summary of Quarter and six-month periods (Unaudited)		For the 13 weeks ended:		For the 26 weeks ended:
(In thousands of dollars, except per share amounts)		August 3, 2014	August 4, 2013	August 3, 2014	August 4, 2013
Sales		20,373	21,933	35,300	38,215
Net earnings (loss)		(860)	645	(3,879)	(2,506)
	Net earnings (loss) per share:
	Basic	(0.06)	0.05	(0.28)	(0.18)
	Diluted	(0.06)	0.05	(0.28)	(0.18)

About Hart Stores Inc.:

Hart Stores Inc. operates a network of 61 mid-sized department stores located in secondary and tertiary markets in Eastern Canada, where the Company has established a dominant position in many of the communities that it serves. The stores offer an extensive and differentiated selection of national and exclusive fashion apparel brands as well as family footwear, home furnishings, electronics, appliances, giftware, toys and seasonal goods.

SOURCE: Hart Stores Inc.

Mr. Franco Messina, VP Finance and CFO, [phone]