Mall accessory unit performance strong at Wilsons Leather

17 Aug '05

5 min read

Comparable store sales for the prior year-to-date period do not include sales from stores that were liquidated.
The net loss for the current six-month period was $17.8 million, or $0.46 per basic and diluted share. This compares to a net loss of $57.2 million, or $2.42 per basic and diluted share, in the first half of 2004.

Included in the results for the 2004 fiscal year is a net loss of $22.4 million, or $0.95 per basic and diluted share, related to the transfer of inventory to an independent liquidator in conjunction with the closing of 111 stores, lease termination costs and fixed asset write-offs and other restructuring costs.

Net loss for the 2004 fiscal year, when adjusted to remove the $22.4 million in charges related to store closings and restructuring, was $34.8 million, or $1.47 per basic and diluted share.

A reconciliation of the operating loss, net loss and basic and diluted loss per share for the 2004 periods with and without the charges related to the 2004 restructuring appears in an accompanying table. Operating loss, net loss and basic and diluted loss per share excluding these restructuring charges are measures of performance that are not defined by US generally accepted accounting principles ("GAAP") and should be viewed in addition to, and not in lieu of, the operating loss, net loss and basic and diluted loss per share as reported on a GAAP basis.

Michael Searles, Chairman and Chief Executive Officer (CEO), remarked, "They are pleased with the improved operating performance during the second quarter of 2005. After adjusting for 2004 restructuring efforts, they reduced the net loss during the second quarter by 37.0 percent when compared to last year. Sales during the quarter were strong across the board. The men's division was up 10.1 percent, women's was up 7.5 percent, and accessories increased 8.6 percent."

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