Wednesday July 2 6:58 PM EDT

Source: Venture Stores, Inc.

O'FALLON, Mo., July 2 /PRNewswire/ -- Venture Stores, Inc. (NYSE:VEN) today reported total sales for the five weeks ending June 28, 1997 of $128.4 million, an increase of 3.5 percent from sales of $124.1 million for the five weeks ending June 29, 1996. Comparable store sales for the five weeks decreased 0.8 percent. This marks a return to the improving sales trends Venture experienced in late 1996 and early 1997.

In addition, Venture reported that it has received an increase in the advance rate under its credit facility agented by BT Commercial Corporation to 65 percent from 60 percent for the balance of the year. This will enhance the company's capacity to borrow against its inventory to support the further implementation of its repositioning strategy.

``Venture's June sales results are a significant improvement over the trends we saw in the three prior months, providing the best indicator so far that our repositioning has the company headed in the right direction,'' said Robert N. Wildrick, the company's chairman and chief executive officer. ``This sales trend is encouraging, but it does not change the fact that we have a great deal more work to do in the coming year before our efforts to turn Venture around are complete.''

According to Wildrick, Venture's sales results reflected a solid upturn in apparel sales and the continued strengthening of its hardlines business. Hardlines, which represent two-thirds of Venture's total store sales, achieved a 3.3 percent comparable store sales increase for the five weeks. Individual departments turning in store-for-store sales increases during June included ladies' denim, jewelry, domestics, outdoor leisure products, toys, stationery and gifts, housewares, sporting goods, and luggage.

For the 22 weeks ending June 28, 1997, total sales were $536.8 million compared with $581.3 million for the 22 weeks ended June 29, 1996, a decrease of 7.7 percent.

Comparable store sales through June declined 9.6 percent. Sales and margins in March through June were affected by temporary disruptions in the supply of merchandise in some categories due to restrictions in the company's old credit agreement. In March, Venture finalized a new credit line through BT Commercial Corp.

Second Quarter Earnings Outlook

Venture also indicated that the company anticipates recording a second quarter net loss available to common shareholders before nonrecurring charges in the range of $1.95 per share to $2.30 per share, including a loss of approximately 85 cents per share due to unrealizable deferred tax benefits. If the company achieves profitability in future years, the deferred tax benefits will become realizable in those periods.

Venture currently operates 113 family value stores in nine states. Venture's common stock is traded on the New York Stock Exchange under the symbol VEN.

Contact: Investor: Russell Solt of Venture Stores, 314-281-7800, or Media: Randy Myers or Tom Goyda of Shandwick, 314-436-6565