**UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C.  20549       **FORM 10-Q    **[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934  **For the quarterly period ended October 28, 2000**Commission File No.  1-10892   **OR   **[    ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934         **HAROLD'S STORES, INC.

(Exact name of registrant as specified in its charter)       **Oklahoma

(State or other jurisdiction of

incorporation or organization) **73-1308796

(IRS Employer Identification No.)   **765 Asp Norman, Oklahoma  73069

(Address of  principal executive offices)

(Zip Code) **(405) 329-4045

(Registrant's telephone number,

including area code)   
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   
Yes   [X] 
No   [   ]   
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.   
As of November 30, 2000, the registrant had 6,075,067 shares of Common Stock outstanding.
** 

 

**Harold's Stores, Inc. & Subsidiaries

Index to

Quarterly Report on Form 10-Q

For the Period Ended October 28, 2000      
Part I - FINANCIAL INFORMATION
Page   
Item 1.
Financial Statements     
Consolidated Balance Sheets - October 28, 2000 (unaudited) and January 29, 2000	
3    
Consolidated Statements of Operations -  
Thirteen Weeks and Thirty-Nine Weeks ended October 28, 2000 (unaudited) and October 30, 1999 (unaudited) 	
5    
Consolidated Statements of Cash Flows -  
Thirty-Nine Weeks ended October 28, 2000 (unaudited) and October 30, 1999 (unaudited) 	
6    
Notes to Interim Consolidated Financial Statements	
7    
Report of Independent Public Accountants	
9   
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations	
10   
Item 3.
Quantitative and Qualitative Disclosure About Market Risk	
12   
Part II - OTHER INFORMATION    
Item 1.
Legal Proceedings	
13   
Item 6.
Exhibits and Reports on Form 8-K	
13    
Signatures	
15
** 

**HAROLD'S STORES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

ASSETS

(In Thousands)       
October 28,

2000 
January 29,

2000  
(Unaudited)       
Current assets:         
Cash and cash equivalents 
$  1,006 
$     721
Trade accounts receivable, less allowance for doubtful accounts of $200 in October and January 
6,909 
6,413
Note and other receivables 
173 
2,247
Merchandise inventories 
34,938 
37,357
Prepaid expenses 
2,987 
2,514
Prepaid income tax 
1,891 
1,368
Deferred income taxes 
1,582 
1,582     
Total current assets 
49,486 
52,202     
Property and equipment, at cost 
34,461 
33,983
Less accumulated depreciation and amortization 
(14,460) 
(12,665)     
Net property and equipment 
20,001 
21,318     
Deferred income taxes, non-current 
232 
232
Goodwill (net) 
3,417 
-
Other assets 
51 
127     
Total assets 
$73,187 
$73,879     
** 

 

 

**HAROLD'S STORES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS' EQUITY

(In Thousands Except Share Data)       
October 28,

2000 
January 29,

2000  
(Unaudited)       
Current liabilities:         
Accounts payable 
$  5,465 
$  6,329
Redeemable gift certificates 
552 
966
Accrued bonuses and payroll expenses 
1,125 
1,294
Accrued rent expense 
953 
529
Current maturities of long-term debt 
1,676 
630     
Total current liabilities 
9,771 
9,748     
Long-term debt, net of current maturities 
28,080 
27,063          
Stockholders' equity:         
Preferred stock of $.01 par value

Authorized 1,000,000 shares; none issued 
- 
-
Common stock of $.01 par value

Authorized 25,000,000 shares; issued and outstanding 6,075,067 in October and 6,075,182 in January 
 

61 
 

61
Additional paid-in capital 
34,170 
34,170
Retained earnings 
1,107 
2,838  
35,338 
37,069
Less:  Treasury stock of 205 shares in October and 90 shares in January recorded at cost 
2 
1
Total stockholders' equity 
35,336 
37,068     
Total liabilities and stockholders' equity 
$73,187 
$73,879     

 

 

**HAROLD'S STORES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands Except Per Share Data)         
13 Weeks Ended 
39 Weeks Ended 
October 28,

2000 
October 30,

1999 
October 28,

2000 
October 30,

1999 
(Unaudited)        
Sales
$31,099 
$32,814 
$94,022 
$97,942        
Costs and expenses:       
Costs of goods sold (including occupancy and central buying expenses, exclusive of items shown separately below)
 

21,718 
 

22,473 
 

66,313 
 

65,003        
Selling, general and administrative expenses
8,540 
9,716 
25,956 
28,659        
Depreciation and amortization
1,112 
1,050 
3,341 
3,283        
Interest expense
439 
336 
1,295 
734         
31,809 
33,575 
96,905 
97,679        
Earnings (loss) before income taxes
(710) 
(761) 
(2,883) 
263        
Provision (benefit) for income taxes
(284) 
(296) 
(1,153) 
103        
Net earnings (loss)
(426) 
(465) 
(1,730) 
160                
Net earnings (loss) per common share:       
Basic and diluted
$  (0.07) 
$  (0.08) 
$  (0.28) 
$    0.03        
Weighted average number of common shares - basic
6,075 
6,075 
6,075 
6,075        
** **
**HAROLD'S STORES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)     
39 Weeks Ended  
October 28,

2000 
October 30,

1999  
(Unaudited)     
Cash flows from operating activities:    
Net earnings (loss) 
$(1,730) 
$      160
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:    
Depreciation and amortization 
3,341 
3,283
Gain on sale of assets 
(343) 
(4)
Shares issued under employee incentive plan 
- 
9
Changes in assets and liabilities:    
Decrease (increase) in trade and other accounts receivable 
157 
(1,285)
Decrease (increase) in merchandise inventories 
2,419 
(11,120)
Increase in prepaid expenses 
(375) 
(818)
Increase in prepaid income tax 
(523) 
(289)
Decrease in other assets 
76 
421
(Decrease) increase in accounts payable 
(864) 
2,529
Decrease in accrued expenses 
(159) 
(503)
Decrease in income taxes payable 
- 
(480)     
Net cash provided by (used in) operating activities 
1,999 
(8,097)     
Cash flows from investing activities:    
Acquisition of property and equipment 
(2,078) 
(4,576)
Proceeds from disposal of property and equipment 
848 
7
Payments received for notes receivable 
35 
698     
Net cash used in investing activities 
(1,195) 
(3,871)     
Cash flows from financing activities:    
Payments on long-term debt 
(1,268) 
(825)
Advances on revolving line of credit 
36,099 
42,284****************************************