<PAGE>

                                                                   EXHIBIT 99.1


[BLAIR CORPORATION LOGO]


FOR IMMEDIATE RELEASE:
CONTACTS:
Blair Corporation                                            Carl Hymans
Bryan Flanagan, SVP/Chief Financial Officer                  G.S. Schwartz & Co
814-723-3600                                                 212-725-4500
                                                             carlh@schwartz.com

          BLAIR CORPORATION REPORTS IMPROVED SECOND QUARTER RESULTS AND
                 ANNOUNCES THE COMMENCEMENT OF ITS TENDER OFFER

WARREN, Pa., (July 20, 2005) -- Blair Corporation (Amex: BL), (www.blair.com), a
national multi-channel direct marketer of women's and men's apparel and home
products, today announced results for the second quarter and six months ended
June 30, 2005. In addition, Blair today commenced its tender offer to repurchase
4.4 million shares of approximately 8.3 million shares outstanding.

Net sales for the second quarter ended June 30, 2005 were $120.8 million
compared to $127.0 million reported for the second quarter ended June 30, 2004.

Net income for the second quarter ended June 30, 2005 was $6.1 million, or $0.74
per basic and $0.73 per diluted share, compared to $5.0 million, or $0.62 per
basic and $0.61 per diluted share, reported for the second quarter last year.

Net sales for the six months ended June 30, 2005 were $228.4 million, compared
to $255.6 million reported for the first six months ended June 30, 2004.

Net income for the six months ended June 30, 2005 was $6.7 million, or $0.82 per
basic and $0.81 per diluted share, compared to $5.6 million, or $0.69 per basic
and diluted share, reported for the six months last year.

The $6.2 million reduction in net sales for the second quarter of 2005 was
driven primarily by a decrease of approximately $5.7 million resulting from the
previously announced closing of its Crossing Pointe catalog that was completed
in March 2005.

Net income results for the quarter reflect Blair's continued focus on its core
business opportunities and profitability. These initiatives are key elements of
Blair's strategic plan to eliminate unprofitable sales and enhance shareholder
value.

Cost of goods sold as a percentage of net sales for the second quarter of 2005
was 45.5% compared to 45.9% for the second quarter of 2004, reflecting continued
success in its efforts to lower overall liquidation costs.


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Blair also benefited by negotiating lower merchandise cost from its existing
vendors. Blair plans to expand its own International Trade Department's product
development and sourcing as part of its strategic initiatives to further reduce
cost of goods and increase profitability.

During the second quarter, Blair announced plans to initiate a stock tender
buyback of approximately 4.4 million shares of its outstanding common stock at
$42 per share, at an aggregate price of approximately $185 million. The tender
will commence today. Blair also recently closed on a $200 million financing from
PNC Financial Services Group, Inc., which will be used to finance, in part, the
stock tender buyback in conjunction with $40 million of Blair's cash reserves.

"Blair intends to pay down this credit facility from PNC with the proceeds
received from the previously announced sale of its credit portfolio to Alliance
Data Systems Corp. With our tender commencing today, we are confident that the
repurchase of more than half of our shares, in conjunction with remaining an
independent public company, will maximize future shareholder value," said Bryan
Flanagan, senior vice president and Chief Financial Officer.

Blair's e-commerce channel generated $48.6 million in gross sales demand in the
first six months of 2005, compared to $45.6 million in the first six months of
2004. The year-over-year increase was achieved despite significantly lower
Crossing Pointe e-commerce gross sales demand.

"The increase in profitability for the second quarter reflects Blair's strategic
efforts to focus on its core customer base, lowering overall operating costs and
reducing unprofitable sales," said John Zawacki, president and Chief Executive
Officer.

"Blair is confident that today's tender offer will be a major factor in
enhancing shareholder value. We remain committed to increasing profitability and
further developing and implementing strategic plans which will enhance our
position as the premier direct marketer to value-conscious consumers," Mr.
Zawacki concluded.

ABOUT BLAIR

Headquartered in Warren, Pennsylvania, Blair Corporation sells a broad range of
women's and men's apparel and home products through direct mail marketing and
its Web sites www.blair.com and www.irvinepark.com. Blair Corporation employs
over 2,000 people and operates facilities and retail outlets in Northwestern
Pennsylvania as well as a catalog outlet in Wilmington, Delaware. The Company,
which has annual sales of approximately $500 million, is publicly traded on the
American Stock Exchange (Amex: BL).

BLAIR CORPORATION SECURITY HOLDERS ARE ADVISED TO READ BLAIR CORPORATION'S
TENDER OFFER STATEMENT WHEN IT BECOMES AVAILABLE AS IT WILL CONTAIN IMPORTANT
INFORMATION REGARDING THE TENDER OFFER. BLAIR CORPORATION WILL NOTIFY ALL OF ITS
SECURITY HOLDERS WHEN THE TENDER OFFER STATEMENT BECOMES AVAILABLE. WHEN
AVAILABLE, BLAIR CORPORATION SECURITY HOLDERS MAY GET THE TENDER OFFER STATEMENT
AND OTHER FILED DOCUMENTS RELATED TO THE TENDER OFFER FOR FREE AT THE U.S.
SECURITIES AND EXCHANGE COMMISSION'S WEB SITE (www.sec.gov). IN ADDITION, BLAIR
CORPORATION SECURITY HOLDERS MAY REQUEST A FREE COPY OF THE TENDER OFFER
STATEMENT AND OTHER DOCUMENTS RELATED TO THE TENDER OFFER FROM BLAIR CORPORATION
WHEN AVAILABLE.


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This release contains certain statements, including without limitation,
statements containing the words "believe," "plan," "expect," "anticipate,"
"strive," and words of similar import relating to future results of the Company
(including certain projections and business trends) that are "forward-looking
statements" as defined in the Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those projected as a result of certain
risks and uncertainties, including but not limited to, changes in political and
economic conditions, demand for and market acceptance of new and existing
products, as well as other risks and uncertainties detailed in the most recent
periodic filings of the Company with the Securities and Exchange Commission.

                           --Financial table follows--


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                                BLAIR CORPORATION
                        COMPARATIVE OPERATING HIGHLIGHTS
                                   (UNAUDITED)
                  (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>
                                                                    FOR THE THREE MONTHS ENDED JUNE 30
                                                                    ----------------------------------
                                                                  2005                              2004
                                                             -------------                     --------------
<S>                                                          <C>                               <C>
Net sales                                                         $120,835                          $ 126,993
Income before income taxes                                           9,639                              8,087
Income taxes                                                         3,575                              3,076
Net income                                                           6,064                              5,011

Basic / diluted earnings per share                           $0.74 / $0.73                      $0.62 / $0.61

Weighted average basic shares outstanding                        8,191,942                          8,092,034

Weighted average diluted shares outstanding                      8,324,925                          8,166,940
</TABLE>


<TABLE>
<CAPTION>
                                                                     FOR THE SIX MONTHS ENDED JUNE 30
                                                                     --------------------------------

                                                                  2005                              2004
                                                             -------------                     --------------
<S>                                                          <C>                               <C>
Net sales                                                        $ 228,392                          $ 255,635
Income before income taxes                                          10,661                              9,007
Income taxes                                                         3,947                              3,425
Net income                                                           6,714                              5,582

Basic / diluted earnings per share                           $0.82 / $0.81                     $0.69 / $ 0.69

Weighted average basic shares outstanding                        8,184,428                          8,071,579

Weighted average diluted shares outstanding                      8,317,667                          8,139,561
</TABLE>


                   SELECTED BALANCE SHEET ITEMS AS OF JUNE 30
                   ------------------------------------------


<TABLE>
<CAPTION>
                                                                  2005                           2004
                                                               ----------                     ----------
<S>                                                            <C>                            <C>
Customer accounts receivable                                   $  134,631                     $  146,289

Inventories                                                    $   67,771                     $   76,136

Total assets                                                   $  348,268                     $  339,298

Total liabilities                                              $   60,044                     $   64,872

Stockholders' equity                                           $  288,223                     $  274,426

Total liabilities and stockholders' equity                     $  348,268                     $  339,298
</TABLE>
