Candie's, Inc. (Nasdaq NMS symbol: CAND; "The Company") today announced financial results for the first quarter fiscal 2001 ended April 30, 2000. FIRST QUARTER OPERATING RESULTS: For the first quarter of fiscal 2001, net revenues rose approximately 15.0% to approximately $24.4 million from $21.3 million in the prior year first quarter. The rise in net revenues resulted from strong consumer acceptance of the Company's women's footwear lines. The gross profit margin for the fiscal 2001 first quarter was 23.2% compared to 25.4% in the prior year first quarter. The decline in gross profit margin was primarily attributable to clearing certain unsold inventory. Licensing income rose to $1.0 million compared to $390,000 in first quarter of the prior year, reflecting continued revenue increases for Candie's licensed products. Selling, general & administrative expenses decreased by approximately 18% in the first quarter of fiscal 2001 compared to the first quarter of the prior year in response to the Company's expense reduction initiatives. The Company recorded an operating profit of $826,000 compared to an operating loss of approximately $1.3 million in the first quarter of the prior year. Net income was $465,000 or $0.02 per diluted share on 21.8 million shares, compared to a net loss of approximately $1.2 million, or $(0.07) per diluted share on 17.4 million shares in the first quarter of the prior year. In commenting on the results, Neil Cole, Chairman and CEO stated, "The first quarter marked the beginning phase of implementing initiatives designed to improve the Company's operating results. Management's focus on footwear and marketing activities, as well as changes to inventory management, sourcing, and a reduction in expenses has enabled the Company to return to profitability." Mr. Cole continued, "Our Candie's and Bongo brands continue to gain strength, which is demonstrated by the strong performance of our licensed products and the traffic to our website,