nip FREDERICK'S OF HOLLYWOOD, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (000's omitted) For the fiscal year ended Net sales August 31. September 3 August 28. 1996 1995 1994 $148,090 $142,931 $132,153 Costs and expenses: Cost of goods sold, buying and occupancy costs 88,059 84,203 77,409 Selling, general and administrative expenses 60,871 Provision for store closing 54,957 (790) 52,530 3,442 148,930 138,370 133,381 Operating profit (loss) Other income (expense): Interest expense Miscellaneous (840) 4,561 (1,228) (107) (118) (150) 283 (31) (327) 176 (149) (477) Earnings (loss) before income taxes. (664) 4,412 (1,705) Income taxes (benefit) (226) 1,760 (682) Earnings (loss) before cumulative effect of a change in accounting principle (438) 2,652 (1,023) Cumulative effect of a change in accounting principle 120 Net earnings (loss) (438) $ 2,652 $ (903) Earnings (loss) per share Primary Classes A & B $ .05) Fully diluted Classes A & B $ .05) es es $ .31 $ .10) $ .30 $ .10) Weighted average shares outstanding Primary Classes A & B 8 745 8,745 8,693 8,876 8,702 8,875 Fully diluted - Classes A & B See accompanying notes to consolidated financial statements.