CCA Industries, Inc. Reports A Projected Fiscal 2013 Loss And Restructuring To Reduce Overhead Expenses

CCA Industries, Inc. Reports A Projected Fiscal 2013 Loss And Restructuring To
                           Reduce Overhead Expenses

PR Newswire

EAST RUTHERFORD, N.J., Jan. 20, 2014

EAST RUTHERFORD, N.J., Jan.20, 2014 /PRNewswire/ --CCA Industries, Inc.
(NYSE MKT: "CAW") announced today that its Board of Directors has approved
management's plan to restructure the Company's operations, and enter into a
key business partnership with The Emerson Group, a premier sales and marketing
company located in Wayne, Pennsylvania. As part of this change, the Company
will outsource to Emerson certain sales and administrative functions. In
addition, warehousing and shipping will be outsourced to and managed by OHL,
one of the largest integrated global supply chain management companies in the
United States. The Company's inventory will be moved to an OHL-managed
facility in Indianapolis, Indiana. A key benefit of the outsourcing move is
that it shifts a substantial portion of the Company's current fixed costs into
a variable cost structure moving forward which can ultimately help keep
expenses in better alignment with any future revenue generated by its brands.
This action could also potentially save the Company over $3.5 millionin
overhead expenses over the course of the first twelve months based on
performance of its brands in fiscal 2014.

The Company also announced that it is projecting a net loss for fiscal 2013 in
excess of $6.1 million. As previously reported the company lost important
momentum due to the unexpected passing of its prior CEO in the midst of a
challenging retail environment and, as a result, revenue expected from its new
product launches, in-store merchandising and expanded distribution efforts did
not materialize as expected. In addition, returns and inventory reserve costs
resulting from a significant weakness seen in the nail color category, coupled
with the less than expected consumer sales of its gel nail color brand
introduced in fiscal 2011, also significantly exacerbated the Company's
disappointing performance in fiscal 2013. We do not anticipate those
substantial losses continuing.

Richard Kornhauser, Chief Executive Officer and President of CCA Industries
said, "This outsourcing plan will permit our company to leverage the power of
scale in all aspects of our sales, warehousing and logistics needs, resulting
in significant operating efficiencies and expense reduction while continuing
to direct all aspects of our business. Importantly, this restructuring will
enable the Company's management team to substantially beef up its efforts to
enhance our key brands' connection to the consumer with extensive and
cost-effective advertising and marketing strategies that emphasize the
competitive strengths of our core products." Mr. Kornhauser added, "The
Emerson Group could be an ideal partner with their strong market presence and
significant credibility with our retail trade partners. We are looking
forward to working closely with them and leveraging their strong retailer
network to drive the Company's efforts to further enhance its position
in-store, and expand its distribution base on both existing brands and new
products. The Emerson Group currently manages approximately $1.7 billion in
consumer sales, and they can be a key catalyst in our plans to grow CCA into a
major consumer products company."

Mr. Kornhauser added, "We anticipate completion of this restructuring,during
CCA's 2nd fiscal quarter and that the effort will start to deliver substantial
savings at that time. We estimate that we will incur costs related to the
restructure of approximately $300,000 in the first quarter of fiscal 2014, but
with the outsourcing to Emerson, and our overall efforts, we believe the
Company should return to profitability during fiscal 2014. We expect to issue
complete financial results for fiscal 2013 at the end of February 2014."

CCA Industries, Inc. manufactures and markets health and beauty aids, each
under its individual brand name. The products include, principally,
"Plus+White" toothpastes and teeth whiteners, "Mega-T" Green Tea diet
supplements, "Bikini Zone" medicated topical and shave gels, "Nutra Nail" nail
care treatments, "Gel Perfect" UV free gel color, "Scar Zone" scar treatment
products, "Sudden Change" anti-aging skin care products, "Cherry Vanilla"
fragrances, "Solar Sense" sun protection products, "Hair Off"hair removal
and depilatory products, "Wash 'N Curl" shampoos and conditioners and "Pain
Bust RII" an analgesic product.

Statements contained in the news release that are not historical facts are
forward looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements, including
statements regarding expectations with respect to future operating results,
anticipated future cost savings, anticipated timing and cost of implementation
of the operational changes described in this new release and the manner in
which the operational changes described in this news release, and the timing
of their implementation, may affect future operating results, are subject to
risks and uncertainties, which would cause actual results to differ materially
from estimated results. Such risks and uncertainties are detailed in the
Company's filings with the Securities and Exchange Commission. No assurance
can be given that the results in any forward-looking statement will be
achieved, and actual results could be affected by one or more factors, which
could cause them to differ materially. For these statements, we claim the
protection of the safe harbor for forward-looking statements contained in the
Private Securities Litigation Reform Act and otherwise under applicable law.

SOURCE CCA Industries, Inc.

Contact: Stephen A. Heit, Chief Financial Officer, 800 524-2720
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