HART STORES REPORTS THIRD QUARTER RESULTS

SYMBOL: HIS (TSX)
www.hartstores.com

LAVAL, QC, Dec. 7 /CNW Telbec/ - Hart Stores Inc., an operator of mid-sized department stores (HIS:TSX), reported net loss of $0.9 million for the third quarter ended October 30, 2010 or $0.06 diluted net loss per share, compared to a net earnings of $0.4 million in the same period the previous year or $0.03 diluted net earnings per share.

Sales for the third quarter ended October 30, 2010 were $41.5 million compared to $44.6 million the previous year, a decrease of $3.1 million or 7.1%. Same store sales decreased by 8.7%.

For the nine-month period ended October 30, 2010 net loss was $2.2 million or $0.16 diluted net loss per share compared to a net earnings of $0.8 million or $0.06 diluted net earnings per share for the same period last year. Total sales decreased by $3.4 million or 2.7% to reach $122.5 million from $125.9 million last year. Same store sales decreased by 3.6%.

Commenting on the results, Mr. Michael Hart, President and Chief Executive Officer of Hart Stores said: "Our quarterly performance was affected by reduced consumer spending and higher markdowns incurred due to the extremely competitive retail environment. We have incurred increased costs related to the implementation of our new point of sales and merchandising system, which is expected to be completed at the end of next year, and which also affected net earnings."

Quarter and nine-month periods  (Unaudited) (In thousands of dollars, except per share amounts)	For the 13 weeks ended:   October 30, 2010     October 31, 2009		For the 39 weeks ended:   October 30, 2010    October 31, 2009
Sales	41,479	44,626	122,461	125,855
Other income	-	-	-	850
Net earnings (loss)	(877)	376	(2,235)	828
Net earnings (loss) per share:    Basic    Diluted	(0.06) (0.06)	0.03 0.03	(0.16) (0.16)	0.06 0.06

About Hart Stores Inc.:

Hart Stores Inc. operates a network of 92 mid-sized department stores under the Hart, Bargain Giant and Géant des Aubaines banners. The stores are located in secondary and tertiary markets throughout Eastern Canada where the Company has established a dominant position in many of the communities that it serves. The stores offer an extensive and differentiated selection of national and exclusive fashion apparel brands as well as family footwear, home furnishings, housewares, electrical appliances, home electronics, bed & bath, giftware, toys and seasonal goods.

For further information:

Mr. Jacques Plante, CA
Vice-President and Chief Financial Officer,
Hart Stores Inc. [phone]
[email protected]; www.hartstores.com