Goody's Family Clothing Announces 3.8% Increase in August Comp Store Sales

Business Wire, Sept 3, 1998

KNOXVILLE, Tenn.--(BUSINESS WIRE)--Sept. 3, 1998--Goody's Family Clothing, Inc. (Nasdaq/NM:GDYS) today reported sales for the month of August 1998 of $88.5 million, an increase of 15.1% over August 1997 sales of $76.9 million. Comparable store sales for August 1998 increased 3.8% from August 1997.

Sales for the seven months ended August 29, 1998, increased 17.9% to $564.7 million from $479.1 million during the same period last year. Comparable store sales for the seven months ended August 29, 1998, increased 6.4% over the same period in the prior year.

During the month of August 1998, the Company opened five new stores, one each in Fayetteville and Rogers, Arkansas; and Charleston, Logan and Nitro, West Virginia. For the fiscal year 1998 to date, the Company has opened 17 new stores, relocated four stores, remodeled three stores, closed two stores, and currently operates 238 stores. For the remainder of the fiscal year 1998, the Company plans to open an additional 11 to 13 new stores, relocate four stores and open four temporary stores in four new test markets.

This press release contains forward-looking statements which are based upon current expectations and plans, and involve material risks and uncertainties including, but not limited to, the impact of competitors' store expansion, the ability to enter into leases for new store locations, and the general economic conditions within the Company's markets. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future events 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 public filings with the Securities and Exchange Commission.

With headquarters in Knoxville, Tennessee, Goody's is a retailer of moderately priced apparel for women, men and children operating in the 15 states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Mississippi, Missouri, North Carolina, Ohio, South Carolina, Tennessee, Virginia and West Virginia.

    CONTACT:  Goody's Family Clothing Inc., Knoxville
               Edward R. Carlin, 423/966-2000