Braun's Fashions Corporation (Nasdaq: BFCI) today reported record results for its first quarter ended May 27, 2000.

For the first quarter, net income increased to $4.9 million or $0.66 per diluted share, compared to $1.5 million or $0.23 per diluted share in the prior year's period. Net sales for the first quarter increased 45% to $42.3 million from $29.2 million last year, while same store sales increased 21% during the quarter.

The company opened 19 new Christopher & Banks stores in the first quarter and operated 242 stores at May 27, 2000, compared to 200 stores at May 29, 1999.

Bill Prange, chairman and chief executive officer of Braun's, commented: "We are extremely pleased to report record first quarter sales and earnings, which were driven primarily by strong sales at full prices. Gross margins for the quarter improved significantly, increasing 810 basis points over last year. This increase was largely attributable to extremely positive customer response to our Spring merchandise. Further, our efficient inventory management enabled us to rapidly re-order best-selling items, thereby capitalizing on strong demand for our products."

Mr Prange continued: "Of particular note, sales of sweaters, knit tops and denim products were very strong during the quarter. Our 21% increase in same-store sales for the quarter, following a 9% increase in same-store sales in last year's first quarter, clearly highlights the ongoing success of our merchandising strategy. Furthermore, our new store-opening program remains on target. We opened 19 new Christopher & Banks stores in the first quarter and expect to open approximately 16 additional Christopher & Banks stores during the remainder of the year. During the Fall, we also plan to open approximately 20 CJ Banks stores, serving the women's large-size market."

Mr Prange concluded: "Looking ahead, we remain very optimistic about our future prospects as we continue the development of our Christopher & Banks brand. In addition, we are excited about our planned expansion into the women's large size market, which we believe provides us with another growth vehicle."

Braun's Fashions Corporation is a Minneapolis-based specialty retailer of women's clothing and accessories providing exclusive fashions under the Christopher & Banks label. Presently, the company has 243 stores operating in 27 states, located primarily in the northern regions throughout the United States.

This release contains forward-looking statements regarding future performance of the Company. The achievement of such results is subject to certain risks and uncertainties, including changes in economic, market and weather conditions, the effect of consumer tastes and spending habits, the realization of expected economies gained through the use of private label and direct import merchandise, management of growth and other factors outside the Company's control, including factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to update these forward- looking statements to reflect events or circumstances that may arise after the date hereof.

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