Article: Zayre expects 1987 loss in discount store division; onetime items create higher corporate net income.

ZAYRE EXPECTS 1987 LOSS IN DISCOUNT STORE DIVISION;

ONETIME ITEMS CREATE HIGHER CORPORATE NET INCOME

FRAMINGHAM, Mass., Jan. 28 /PRNewswire/ -- Maurice Segall, chairman and chief executive officer of Zayre Corp. (NYSE: ZY), a diversified retailer, indicated today that despite an expected operating loss in the important Zayres Stores division for the fourth quarter and the fiscal year ending Jan. 30, 1988, the company expects to post a significant increase in net income and earnings per share over last year's income of $89.0 million, or $1.49 per share, fully diluted. This increase is the result of two special onetime items.

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