Wilsons The Leather Experts Inc. and Subsidiaries
Supplemental Information — Consolidated Statement of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)

Reconciliation of GAAP Consolidated Statement of Operations to Adjusted Statement of Operations:

			Three Months Ended		Restructuring			Three Months Ended
			January 31,		And Other			January 31,
			2004 - As Reported		Charges (1)			2004 - Adjusted
Net sales			$	268,094	$	3,290		$	264,804
	Cost of goods sold, buying and occupancy costs			168,070		7,172			160,898
		Gross margin		100,024		(3,882	)		103,906
	Selling, general and administrative expenses			50,309		2,805			47,504
	Depreciation and amortization			6,675		1,912			4,763
		Operating income		43,040		(8,599	)		51,639
	Interest expense, net			3,237		—			3,237
		Income from continuing operations before income taxes		39,803		(8,599	)		48,402
	Income tax provision			27,431		—			27,431
	Income from continuing operations			12,372		(8,599	)		20,971
		Net Income	$	12,372	$	(8,599	)	$	20,971
Basic earnings per share:
	Income from continuing operations		$	0.60	$	0.42		$	1.02
		Basic earnings per share	$	0.60	$	0.42		$	1.02
Weighted average shares outstanding — basic				20,641		—			20,641
Diluted earnings per share:
	Income from continuing operations		$	0.60	$	0.41		$	1.01
		Diluted earnings per share	$	0.60	$	0.41		$	1.01
Weighted average shares outstanding — diluted				20,776		—			20,776

(1) Includes $8.6 million related to the transfer of inventory to an independent liquidator in conjunction with the expected closing of approximately 111 stores, severance related to staff reductions; accelerated depreciation related to store closings; a loss on disposal of assets associated with the closing of the Las Vegas distribution center, and other miscellaneous charges.

Wilsons The Leather Experts Inc. and Subsidiaries
Supplemental Information — Consolidated Statement of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)

Reconciliation of GAAP Consolidated Statements of Operations to Adjusted Statement of Operations

			Year Ended			Restructuring			Year Ended
			January 31,			And Other			January 31,
			2004 - As Reported			Charges (1)			2004 - Adjusted
Net sales			$	521,025		$	3,290		$	517,735
	Cost of goods sold, buying and occupancy costs			377,060			7,172			369,888
		Gross margin		143,965			(3,882	)		147,847
	Selling, general and administrative expenses			150,678			2,805			147,873
	Depreciation and amortization			19,207			1,912			17,295
		Operating loss		(25,920	)		(8,599	)		(17,321	)
	Interest expense, net			10,868			—			10,868
		Loss from continuing operations before income taxes		(36,788	)		(8,599	)		(28,189	)
	Income tax benefit			(3,205	)		—			(3,205	)
	Loss from continuing operations			(33,583	)		(8,599	)		(24,984	)
		Net Loss	$	(33,538	)	$	(8,599	)	$	(24,939	)
Basic and diluted loss per share:
	Loss from continuing operations		$	(1.64	)	$	0.42		$	(1.22	)
		Basic loss per share	$	(1.64	)	$	0.42		$	(1.22	)
Weighted average shares outstanding — basic and diluted				20,528			—			20,528

(1) Includes $8.6 million related to the transfer of inventory to an independent liquidator in conjunction with the expected closing of approximately 111 stores, severance related to staff reductions; accelerated depreciation related to store closings; a loss on disposal of assets associated with the closing of the Las Vegas distribution center, and other miscellaneous charges.