The Right Start Reports First Quarter Results

Calabasas, California, UNITED STATES

WESTLAKE VILLAGE, Calif., June 18, 2001 (PRIMEZONE) -- The Right Start, Inc. (Nasdaq:RTST), today announced results for its first quarter ended May 5, 2001.

Retail sales for the thirteen-week period were $11,004,000, an increase of 6.5% over retail sales of $10,329,000 for the thirteen weeks ended April 29, 2000. Same store sales, or sales for stores open at least 14 months, decreased 4.1%.

For the first quarter, the Company's consolidated earnings, before interest, taxes, depreciation and amortization, and before new store pre-opening costs, non-cash compensation and executive severance expense (EBITDA), consisted of a loss of $327,000, compared to income of $30,000 last year.

Jerry R. Welch, Chairman and CEO, said, "The first quarter retailing environment for kids products was difficult. Due to the bankruptcy filings and accompanying liquidation of inventories by E-Toys, Baby Center, Natural Wonders and Store of Knowledge, our same store sales were adversely impacted. This effect was primarily felt in our 26 regional mall stores whose same store sales were down 10.1% for the quarter. Although our neighborhood street locations were also affected, they still turned in an excellent performance with an increase in same store sales of 8.1%."

For the quarter, the Company reported that it opened 4 new neighborhood street locations in Dallas, Austin and San Diego, ending the quarter with 65 stores in operation. Currently, the Company's store mix consists of 26 regional mall locations and 39 neighborhood street locations. Since 1997, the Company has exclusively focused on its street store concept for new store growth.

About Right Start

The Right Start, Inc. is the largest, national specialty retailer of high quality developmental, educational and care products for infants and children through age 4. The Right Start brand originated in 1985 through the creation of the award-winning Right Start Catalog(. The Right Start now operates 65 retail stores nationwide.

About is a leading online specialty retailer for infants and children and currently operates the Right Start Catalog(tm). is dedicated to providing customers with a unique online shopping experience by offering an assortment of trusted products carefully selected with regard to quality and developmental and educational value.

The companies are based in Westlake Village, CA.

This press release may contain certain forward-looking statements with respect to the financial condition, results of operations and expansion projects of The Right Start that may be impacted by factors including, but not limited to, the availability of capital, competition from other retailers and potential product liability claims and other risks included in The Right Start's filings with the Securities and Exchange Commission including, but not limited to, The Right Start's Registration Statement on Form S-3 (File No. 333-84319), its Annual Report of Form 10-K for the fiscal year ended February 3, 2001 and its quarterly reports.

                          THE RIGHT START, INC.
                        STATEMENT OF OPERATIONS
                                               Thirteen weeks ended
                                           May 5, 2001  April 29, 2000
                                           -----------  --------------
 Retail store sales                       $ 11,004,000    $ 10,329,000
 Sales to                     1,718,000       2,926,000
                                          ------------    ------------
  Net sales                                 12,722,000      13,255,000
 Costs and expenses:
  Cost of goods sold - merchandise           5,543,000       5,061,000
  Cost of goods sold to       1,718,000       2,926,000
  Operating expense                          4,680,000       4,034,000
  Marketing and advertising expense            144,000         249,000
  General and administrative expense           964,000         955,000
  Non-cash compensation expense                 30,000          11,000
  Executive severance expense                   78,000              --
  Pre-opening costs                             83,000         156,000
  Depreciation and amortization expense        636,000         540,000
                                          ------------    ------------
 Operating loss                            (1,154,000)       (677,000)
   Loss on investment in             --       3,750,000
   Interest expense                            221,000         241,000
                                          ------------    ------------
 Pre-tax loss                              (1,375,000)     (4,668,000)
 Income tax provision                           12,000          20,000
                                          ------------    ------------
 Net loss$                                 (1,387,000)   $ (4,688,000)
                                          ============    ============
 Basic loss per share                    $      (0.28)   $      (0.86)
 Basic weighted average number
  of shares outstanding                      5,617,275       5,542,856


Contact Data