COMPANY REPORT: 2/14/2003

Fundamental data is of 3rd quarter 2002

Blair Corp

Ticker: BL

Exchange: AMEX

Price: $22.00 (2/14close)

Market Cap: 177 (millions)

PE Ratio: 10

Shares Outstanding: 8 (million)

2002 sales: $580.7 (million)

Net Income: $9.3 (million)

Dividend Yiels:2.73% ($.15/quarter)

Book Value per share: $31.3

Website: www.blair.com

Phone: 814-723-3600



THE COMPANY

Blair is a direct marketer of fashion apparel for men and women. The company was founded in 1910, and is based in Warren, PA. Most of the company's business is via catalog, although the company is starting to generate a greater amount of business from its internet site (5% in 2001).



RECENT NEWS/PERFORMANCE

Sales growth has been minimal the past few years, although the company is seeing some success in reducing it's expenses. If the company continues to generate a greater amount of business from the net, costs should fall further; it;s not inexpensive to print and mail 40 million catalogs. If they are succesful here, operating margin expansion should occur.



POTENTIAL CATALYSTS

Increase in consumer spending

Improving economy

More internet business

New products/audiences



THE NCAV STORY

Current Assets: 281(million)

Current Liabilities: 83

LT Debt: .6

Other LT Liabilities: 1.5

NCAV: 198

MKT Cap: 177

NCAV/MKT cap: 1.12 (ratio of NCAV to Mkt cap)



NCAV STORY

Blair's accounts receivable have been decreasing, and inventory is sharply reduced from the same period last year. The story here, though is cash, nearly $7 per share, and no debt to speak of.



COMPOSITION OF CURRENT ASSETS

Cash:55(million)

Inventory: 72

Receivables: 139

Other: 15

Cash Per Share:$6.88



Fixed Assets: 56 (million)



Blair has a solid balance sheet, pays a 2.7% dividend, and is making inroads in cost reduction, and greater use of the internet. The company has returned 32.5 percent the past year, and has averaged more than 8.7% for the past five years. Keep your eye on this one. You may have never heard of Blair before, but despite it's small size, some institutions are owners, including Fidelity (9.7% stake as of 9/02).