AMES <ADD> FINDS INVENTORY SHORTAGE
Ames Department Stores Inc
said its year-end audit has revealed an extraordinary inventory
shortage at its Secaucus, N.J., distribution center and an
investigation is in progress.
    The company said it expects to report earnings for the year
ended January 31 in about two weeks and estimates that net
income will be 27 to 29 mln dlrs, or 72 to 77 cts per share,
down from earnings of 40.4 mln dlrs or 1.19 dlrs per share
earned the previous year.
    Ames said the net income for the year just ended will
reflect a decline in the gross margin percentage, an increase
in the effective tax rate and the effect of the inventory
shortage.
    A company spokesman said most of the decline in earnings
results from the inventory shortage.
 Reuter
