Bakers Footwear's comparable store sales up
Bakers Footwear Group, Inc., a leading specialty retailer of moderately priced fashion footwear for young women, with 237 stores, announced results for the thirteen and twenty six-weeks ended July 31, 2010.
For the second quarter, the thirteen weeks ended July 31, 2010:
• Net sales were $43.3 million, a decrease of 1.0% from $43.7 million for the thirteen-week period ended August 1, 2009;
• Comparable store sales for the second quarter of fiscal 2010 increased 0.2% following an increase of 0.7% in the prior-year period;
• Gross profit was $11.9 million, or 27.5% of net sales, compared to $12.9 million, or 29.6% of net sales, in the second quarter last year;
• Operating loss was $1.6 million, compared to an operating loss of $1.2 million in the second quarter last year; and
• Net loss was $2.1 million or $0.28 per share, compared to a net loss of $1.7 million, or $0.24 per share in the second quarter last year.
Peter Edison, Chairman and Chief Executive Officer of Bakers Footwear Group commented, “Our second quarter performance was disappointing driven by a lackluster response to our sandal offerings, which led to increased promotional activity during the quarter. That said, we ended the quarter in a solid inventory position with improving sales trends during the latter part of the quarter. We were also pleased to increase our financial flexibility following quarter end with a $5 million investment by Steve Madden, which we believe represents a strong vote of confidence in Bakers by one of our largest suppliers.”
“As we look ahead, we remain optimistic about our opportunities for the fall and holiday seasons,” Mr. Edison continued. “Our strong early selling in key categories, including boots and dress shoes, coupled with the introduction of new brands reflect the favorable reaction to our fall product that is expected to drive positive comparable store sales in the second half of the year at increasing margins. We will also maintain control of expenses and inventory. As a result, we expect to report improved operating performance for the remainder of fiscal 2010.”
For the first half of fiscal 2010, the twenty-six weeks ended July 31, 2010:
• Net sales were $86.8 million, a decrease of 2.1% compared to $88.7 million for the twenty-six weeks ended August 1, 2009;
• Comparable store sales decreased 0.7%, compared to an increase of 2.8% in the first half of 2009;
• Gross profit was $22.7 million, or 26.1% of net sales, compared to $25.6 million, or 28.9% of net sales in the first half of 2009;
• Operating loss was $4.5 million, compared to $3.1 million in the first half of 2009; and
• Net loss was $5.5 million or $0.75 per share, compared to a net loss of $4.5 million, or $0.62 per share in the first half of 2009.
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 through the next twelve months. The Company's Quarterly Report on Form 10-Q, issued today, and the Company's most recent Annual Report on Form 10-K disclose in detail the risks of the Company's current liquidity situation and its ability to comply with its financial covenants.
Bakers Footwear Group Inc