Hartmarx Reports Improved Third Quarter Revenues and 41% Net Earnings Increase; Company Again Raises Full Year 2004 Earnings Gui

Hartmarx Reports Improved Third Quarter Revenues and 41% Net
Earnings Increase; Company Again Raises Full Year 2004 Earnings Guidance 


CHICAGO, Sept. 29  /PRNewswire-FirstCall/ -- Hartmarx Corporation (NYSE: HMX)
today reported improved operating results for its third quarter and nine months
ended August 31, 2004.  Third quarter revenues were $155.8 million in 2004
compared to $151.6 million in 2003.  Net earnings improved to $5.0 million or
$.14 per diluted share in the current period compared to net earnings of $3.5
million or $.10 per diluted share in the third quarter of 2003.  For the nine
months, revenues increased 5.9% to $434.8 million from $410.4 million in 2003. 
Net earnings improved to $10.1 million or $.28 per diluted share compared to
net earnings of $5.6 million or $.16 per diluted share in 2003.

Homi B. Patel, chairman and chief executive officer of Hartmarx, commented, "We
are executing well, achieving sales and earnings increases, improved operating
margins and significant debt reduction from efficient working capital
management.   For the full year, we continue to expect a sales increase in the
mid single digits.  As a result of anticipating a favorable impact of $.02 to
$.03 per diluted share to fourth quarter earnings from the Misook acquisition,
we are once again increasing our estimate for full year earnings from a 50%
increase over last year to a 55% - 60% increase.  Total debt of $132.5 million
at August 31 declined $23.6 million or 15.1% from the year earlier level, even
after reflecting the $32.1 million cash payment related to the Misook
acquisition," Mr. Patel concluded.

Third quarter operating earnings were $9.8 million in 2004 compared to $7.9
million in 2003. The Misook business contributed $.01 to third quarter earnings
per diluted share. For the nine months, operating earnings improved to $21.3
million from $15.9 million in 2003.  The increase reflected the sales
improvement, including approximately $4 million from the Misook business, along
with a higher year-to-date gross margin rate of 30.6% compared to 29.5% in
2003.  Selling, general and administrative expenses increased $6.5 million on
the higher sales, including the Misook business, representing 26.1% of sales
compared to 26.0% in 2003.

Interest expense for the nine months declined to $4.6 million from $5.5 million
in 2003, principally from lower average borrowing levels. Year- to-date results
for 2003 also included a $.8 million first quarter pre-tax refinancing charge
associated with the January, 2003 early retirement of the then outstanding
12.5% senior unsecured notes, representing the non-cash write-off of
unamortized debt discount and financing fees.

Hartmarx produces and markets business, casual and golf apparel under its own
brands including Hart Schaffner Marx, Hickey-Freeman, Palm Beach, Coppley,
Cambridge, Keithmoor, Racquet Club, Naturalife, Pusser's of the West Indies,
Royal, Brannoch, Riserva, Sansabelt, Exclusively Misook, Barrie Pace and
Hawksley & Wight.  In addition, the Company has certain exclusive rights under
licensing agreements to market selected products under a number of premier
brands such as Austin Reed, Tommy Hilfiger, Kenneth Cole, Burberry men's
tailored clothing, Ted Baker, Bobby Jones, Jack Nicklaus, Claiborne, Pierre
Cardin, Perry Ellis, Andrea Jovine, Lyle & Scott and Golden Bear.  The
Company's broad range of distribution channels includes fine specialty and
leading department stores, value-oriented retailers and direct mail catalogs.

The comments set forth above contain forward-looking statements made in
reliance upon the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements can be identified by the
use of forward-looking terminology such as "anticipate," "believe," "continue,"
"estimate," "expect," "intend," "may," "should" or "will" or the negatives
thereof or other comparable terminology.  Forward-looking statements are not
guarantees as actual results could differ materially from those expressed or
implied in such forward-looking statements as a result of certain factors,
including those factors set forth in Hartmarx's filings with the Securities and
Exchange Commission ("SEC").  The statements could be significantly impacted by
such factors as the level of consumer spending for men's and women's apparel,
the prevailing retail environment, the Company's relationships with its
suppliers, customers, licensors and licensees, actions of competitors that may
impact the Company's business, possible acquisitions and the impact of
unforeseen economic changes, such as interest rates, or in other external
economic and political factors over which the Company has no control.  The
reader is also directed to the Company's periodic filings with the SEC for
additional factors that may impact the Company's results of operations and
financial condition. The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.

                           HARTMARX CORPORATION
                    --- UNAUDITED FINANCIAL SUMMARY --
                (000's omitted, except per share amounts)

  Statement of Earnings
                         Three Months Ended         Nine Months Ended
                              August 31,               August  31,
                          2004        2003          2004         2003

  Net sales            $ 155,783    $ 151,559    $ 434,779    $ 410,373

  Licensing and
   other income              934          560        1,837        1,532
                         156,717      152,119      436,616      411,905

  Cost of goods sold     108,200      108,505      301,909      289,218

  Selling, general &
   administrative
   expenses               38,750       35,736      113,358      106,822
                         146,950      144,241      415,267      396,040

  Operating earnings       9,767        7,878       21,349       15,865
  Interest expense         1,512        1,773        4,634        5,540
  Refinancing expense         --           --           --          795
  Earnings before taxes    8,255        6,105       16,715        9,530
  Tax provision           (3,265)      (2,565)      (6,605)      (3,915)
  Net earnings            $4,990       $3,540      $10,110       $5,615

  Earnings per share:
    Basic                  $ .14        $ .11        $ .29        $ .17
    Diluted                $ .14        $ .10        $ .28        $ .16

  Average shares:

    Basic                 35,285       33,351       34,708       33,195
    Diluted               36,459       34,688       36,142       34,246


                                                         August 31,
  Condensed Balance Sheet                            2004           2003

  Cash                                              $2,752         $6,027
  Accounts receivable, net                         135,579        146,652
  Inventories                                      133,069        137,577
  Other current assets                              21,503         18,212
                       Current Assets              292,903        308,468

  Other assets, including goodwill
   and intangibles                                  66,626         29,490
  Deferred taxes                                    49,875         58,551
  Prepaid and intangible pension asset              64,016         58,708
  Net fixed assets                                  28,212         29,446
                                Total            $ 501,632       $484,663

  Accounts payable and accrued expenses            $97,816        $72,767
  Total debt                                       132,497        156,083
  Minimum pension liability                         65,428         69,473
  Shareholders' equity                             205,891        186,340
                                Total             $501,632       $484,663

  Book value per share                               $5.75          $5.34


  Selected cash flow data (year-to-date):

    Capital Expenditures                            $3,243         $1,744
    Depreciation of fixed assets                     4,188          4,761
    Amortization of long-lived assets and
     unearned employee benefits                      3,186          1,734




This information is preliminary and may be changed prior to filing Form 10-Q. 
No investment decisions should be based solely on this data.

Calculation of basic and diluted shares for the three months and nine months of
2003 have been revised to reflect the methodology utilized in 2004 related to
restricted stock awards.  Basic earnings per share as previously reported in
2003 were $.10 for the three months and $.16 for the nine months. 

DATASOURCE: Hartmarx Corporation



CONTACT: Erin Gaffney of Hartmarx, [phone]



Web site:  http://www.hartmarx.com/ 

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