Home / Knowledge / News / Leading shoe retailer loss widens in Q3
Leading shoe retailer loss widens in Q3
10
Dec '09
Bakers Footwear Group, Inc. a leading specialty retailer of moderately priced fashion footwear for young women, with 241 stores, announced results for the thirteen and thirty nine-weeks ended October 31, 2009.

For the third quarter, the thirteen weeks ended October 31, 2009:

• Net sales were $39.0 million, a decrease of 4.9% from $41.1 million for the thirteen-week period ended November 1, 2008, reflecting weak demand for our transitional fall product;
• Comparable store sales decreased 5.1%, compared to an increase of 4.5% in the prior-year period;
• Gross profit was $6.8 million, or 17.3% of net sales, compared to $9.0 million, or 21.9% of net sales, in the prior-year period, reflecting increased promotional activity and lower leverage on occupancy and buying costs;
• Selling, general and administrative expenses were $13.5 million, or 34.6% of net sales, compared to $13.9 million, or 34.0% of net sales, in the prior-year period;
• Impairment expense was $2.8 million, reflecting non-cash charges in connection with specific underperforming stores, compared to impairment expense of $2.6 million in the third quarter last year;
• Operating loss was $9.5 million, compared to $7.6 million in the third quarter last year; and
• Net loss was $10.2 million or ($1.38) per share, compared to $8.3 million, or ($1.18) per share in the third quarter last year.

Peter Edison, Chairman and Chief Executive Officer of Bakers Footwear Group commented, “In a period that typically represents a seasonal loss for our Company, and despite tougher sales comparisons from last year, we continued to successfully manage our inventory levels, control our operating expenses and maintain compliance with our debt covenants. Our quarter end balance sheet included a 14% decline in inventory. Although comparable store sales declined for the quarter and were below our expectations, consumer response to our boot offerings across key categories was strong. This led to a strengthening in sales as the quarter progressed with positive comp sales recorded in October.

“As we look ahead, we are well positioned to deliver sales growth and improved operating performance in the fourth quarter. While our comparable stores sales are down 2.2% in the fourth quarter through December 6, 2009, holiday sales are encouraging with comparable store sales up 4.0% from Black Friday, November 27, 2009, through December 6, 2009, reflecting continued momentum in boots. We remain confident that our compelling footwear assortments and continued financial discipline will enable us to generate improved operating results and adjusted EBITDA during the fourth quarter. We are also excited by a favorable response to our early spring product that was delivered to warm weather stores.”

Based on the Company's business plan, the Company believes it has adequate liquidity to fund anticipated working capital requirements and expects to be in compliance with its financial covenants throughout the remainder of 2009. The Company's Quarterly Report on Form 10-Q, issued today and the Company's Annual Report on Form 10-K disclose additional information regarding its debt agreements and provide additional disclosure regarding the risks of the Company's current liquidity situation and its ability to comply with its financial covenants.


Must ReadView All

Apparel/Garments | On 26th Sep 2017

US raises annual AGOA quota for textiles

The US Committee for the Implementation of Textile Agreements has...

Textiles | On 26th Sep 2017

Thrace-LINQ expanding Dorchester County operations

Thrace-LINQ, a global supplier of fabrics for the textile industry,...

Courtesy: Levis

Fashion | On 26th Sep 2017

Google unveils smart denim jacket with Levi Strauss

Ending the months-long wait, Google has unveiled its smart denim...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
75.5%
No
12.2%
Skip
12.2%

Total Votes: 49

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.3%
No
24.5%
Skip
12.2%

Total Votes: 49

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.8%
No
6.1%
Skip
6.1%

Total Votes: 49

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
71.4%
No
10.2%
Skip
18.4%

Total Votes: 49


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search