STAMFORD, Conn., May 21 /PRNewswire/ -- Gantos, Inc. (Nasdaq: GTOS) today reported improved operating results for the first quarter of fiscal 1999. Net loss for the thirteen weeks ended May 1, 1999 decreased to $0.1 million, or $(.02) per share, compared to a net loss of $0.7 million, or $(.10) per share, for the same period in fiscal 1998. Gantos' operating income for the thirteen weeks ended May 1, 1999 increased to $1.1 million, compared to operating income of $0.1 million for the same period in fiscal 1998. Net sales for the thirteen weeks ended May 1, 1999 were $40.8 million, compared to $39.1 million for the same period in fiscal 1998. Arlene Stern, President and Chief Executive Officer of Gantos, stated that, "We are pleased that our business for the last three consecutive quarters has shown gains over the same periods of the previous year. The positive response to our merchandising strategy is apparent in the 5 percent increase in comparable stores sales for the quarter. Overall, these results reflect our progress towards reaching profitability." Gantos, Inc. is a specialty retailer of quality women's wear accessories. The company currently operates 115 stores in 23 states. GANTOS, INC. CONDENSED STATEMENTS OF LOSS (Amounts in thousands, except per share and store data) Unaudited May 1, May 2, ASSETS 1999 1998 Current assets: Cash and cash equivalents $1,493 $1,512 Accounts receivable (net) 17,579 18,157 Merchandise inventories 31,049 25,654 Prepaid expenses and other 10,692 9,220 Total current assets 60,813 54,543 Property and equipment (net) 10,437 13,581 Other Assets 888 609 Total assets 72,138 68,733 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable 19,976 12,780 Accrued expenses and other 7,881 8,163 Total current liabilities 27,857 20,943 Long-term debt 35,101 26,830 Shareholders' equity 9,180 20,960 Total liabilities and shareholders' equity 72,138 68,733 GANTOS, INC. CONDENSED STATEMENTS OF LOSS (Amounts in thousands, except per share and store data) Unaudited Fourth Quarter Ended May 1, May 2, 1999 1998 Net sales $40,765 $39,063 Cost of sales (including buying, distribution and occupancy costs) (31,863) (30,893) Gross income 8,902 8,170 Selling, general and administrative expense (8,888) (9,120) Finance charge and other revenue 1,082 1,071 Operating income 1,096 121 Interest expense (1,238) (866) Loss before income taxes (142) (745) Income taxes - - Net loss (142) (745) Per share amounts: Net loss per share ($0.02) ($0.10) Weighted average shares outstanding 7,822,755 7,592,159 Stores open at end of period 115 115  