Bakers shows significant progress in Q4 2007

03 May '08

4 min read

Following a tough early spring, due to a shift in the Easter holiday compared to last year, significantly lower clearance inventories, a canceled catalog and difficult weather, our business has rebounded beautifully in April. Open-toe footwear, a majority of our business during the spring and summer months is showing strong increases over last year. This bodes well for our business and we are optimistic that our sales results will continue to improve over the next several months.”

For the fiscal year, the fifty-two weeks ended February 2, 2008:
• Net sales were $186.3 million, compared to $204.8 million for the fifty-three week period ended February 3, 2007. Comparable store sales for fiscal year 2007, which compares the fifty-two week period ended February 2, 2008 to the fifty-two week period ended February 3, 2007, decreased 12.3%. Comparable store sales for fiscal year 2006 decreased 7.1%.
• Gross profit in fiscal 2007 was $47.5 million, or 25.5% of net sales, compared to $62.2 million, or 30.4% of net sales in fiscal 2006;
• Operating loss was $15.4 million for fiscal 2007, compared to operating loss of $1.6 million in fiscal 2006;
• Net loss for fiscal 2007 was $17.7 million, or $2.70 per share, including a gain of $4.8 million, or $0.73 per share related to the early termination of a lease. This compares to net loss of $1.5 million, or $0.24 per share in fiscal 2006.

The Company's Annual Report on Form 10-K, issued, discloses in detail the risks of the Company's current liquidity situation and its ability to comply with its financial covenants.

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 2008. The Company's bankers and lenders have expressed support for the Company, its business, liquidity, and its management.

Jaime Ward, Managing Director, Bank of America Retail Finance stated: “We have been bankers to Bakers Footwear Group for eight years. We have a great deal of confidence in the management of Bakers. As always, they have presented us with a business plan which shows adequate liquidity to operate for the year.”

“We are confident in management and supportive of their goals,” said Andrew Shayne, Chief Investment Officer, PEM Group. “We believe that their business plan displays more than adequate liquidity for their current fiscal year ending January 31, 2009.”

Mr. Edison continued, “We believe firmly that we have a business plan with more than enough liquidity to operate, adequate ability to meet our debt covenants, favorable fashion trends developing, and contingency plans in place to support our business should unforeseen shortfalls occur.”

Bakers Footwear Group Inc

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