Wilsons Leather announces Q4 & full year 2007 results

05 Mar '08

3 min read

The 2007 year-to-date net loss and basic and diluted loss per share, excluding the $19.7 million fourth quarter impairment charge and financing adjustments, were $57.8 million and $1.47, respectively, compared to a 2006 year-to-date net loss of $33.1 million, or $0.85 per basic and diluted share.

A reconciliation of the U.S. generally accepted accounting principles (GAAP) net income (loss) and earnings (loss) per basic and diluted share for the 2007 periods with and without the impact of the adjustments related to the June 2007 equity financing and fourth quarter impairment charge appears in an accompanying table.

GAAP net income (loss) and earnings (loss) per basic and diluted share, excluding the financing adjustments and impairment charge, are measures of performance that are not defined by GAAP and should be viewed in addition to, and not in lieu of, GAAP net income (loss) and earnings (loss) per basic and diluted share as reported on a GAAP basis. We believe that this non-GAAP disclosure provides meaningful information for comparative purposes.

Michael Searles, Chief Executive Officer, commented, "2007 was obviously a disappointing year for Wilsons Leather. We missed the mark on improving top and bottom line and as a result have taken a step back from a working capital perspective. We do not believe that a mall based specialty leather outerwear concept is relevant any longer in today's marketplace. This is why we have tested and are now embarking on a course of action that includes closing 160 mall stores and changing our 100 remaining mall stores to our new branded accessories "Studio" concept."

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