Goody’s Swings to Q3 Profit on 4.7% Sales Gain

Goody's Family Clothing, Inc. reported net earnings of $1.7 million, or $0.05 per diluted share, for the 13 weeks ended November 1, 2003; compared with a net loss of $3.1 million, or ($0.10) per share for the 13 weeks ended
November 2, 2002, which included, for last year's third quarter, certain one-time expenses, amounting to $1.7 million ($0.03 per share on an after tax basis).

Total sales for the third quarter of fiscal 2003 increased 4.7% to $280.8 million compared with $268.3 million during the same period last year. Comparable store sales for the third quarter of fiscal 2003 increased 3.4% from the same period last year.

For the 39 weeks ended November 1, 2003, net earnings were $10.7 million,
or $0.32 per diluted share, compared with net earnings of $3.7 million, or
$0.11 per diluted share for the 39 weeks ended November 2, 2002. Net earnings
for the 39 weeks ended November 1, 2003, included the previously reported
pretax charge of $3.6 million ($0.07 per diluted share after taxes) related to
the settlement of the Hilfiger litigation. Total sales for the first nine
months of fiscal 2003 increased 2.6% to $857.8 million compared with $835.9
million during the same period last year. Comparable store sales for the first
nine months of fiscal 2003 increased 2.2% from the same period last year.

Robert M. Goodfriend, Chairman and Chief Executive Officer, commented, “I
am pleased with the continuation of positive results through the third quarter
and first nine months of fiscal 2003. Sales and gross profit increased for the
third quarter and first nine months of fiscal 2003. Additionally, the sales
increases enabled us to leverage our selling, general and administrative
expense rate for the quarter and first nine months. Overall inventory levels
at the end of the third quarter were 4.0% higher on a per-square-foot basis
than last year. As we enter the all important fourth quarter of fiscal 2003,
we are cautiously optimistic that we can achieve our comparable store sales
plan.”

Fiscal year to date, the Company has opened 10 new stores, relocated or
remodeled 14 stores and closed three stores. The Company currently operates
335 stores.

                        GOODY'S FAMILY CLOTHING, INC.
               Unaudited Consolidated Statements of Operations
                   (In thousands, except per share amounts)

                             13 Weeks Ended            39 Weeks Ended

                           Nov. 1,      Nov. 2,      Nov. 1,      Nov. 2,
                            2003         2002         2003         2002

    Sales                 $280,777     $268,324     $857,828     $835,873
    Cost of sales and
      occupancy expenses   197,509      190,660      602,801      594,860

        Gross profit        83,268       77,664      255,027      241,013

    Selling, general
      and administrative
      expenses              80,676       82,836      238,571      235,509

        Earnings (loss)
          from operations    2,592       (5,172)      16,456        5,504

    Investment income          127          150          507          408
    Interest expense             1            4            2           10

        Earnings (loss)
          before income
          taxes              2,718       (5,026)      16,961        5,902
    Provision (benefit)
      for income taxes       1,006       (1,885)       6,276        2,213

    Net earnings (loss)   $  1,712     $ (3,141)    $ 10,685     $  3,689

    Earnings (loss) per
      common share:
        Basic             $   0.05     $  (0.10)    $   0.33     $   0.11

        Diluted           $   0.05     $  (0.10)    $   0.32     $   0.11