Bakers Footwear Announces Sale of an Operating Lease
December 12 2007 - 8:00AM
Business Wire
Bakers Footwear Group, Inc. (Nasdaq: BKRS), a leading specialty
retailer of moderately priced fashion footwear for young women,
with 257 stores, today announced the signing of an agreement to
sell an operating lease for total consideration of $5.05 million.
The Company plans to utilize the net proceeds of approximately $5.0
million to reduce debt. Separately, the Company announced: It
expects a third quarter fiscal 2007 net loss of approximately $15.3
million, or $2.35 per share, including approximately $3.5 million
of additional markdown expense compared to the third quarter of
2006 and approximately $3.1 million of asset impairment and
severance expenses associated with its cost reduction plan
announced on September 24, 2007. The Company expects to announce
full results for its third quarter and first nine months of fiscal
2007 on December 18, 2007; November 2007 comparable store sales
declined 3.7%, representing a significant improvement from the
Company�s third quarter fiscal 2007 comparable store sales decline
of 16.6%; and Cost reduction initiatives remain on track and are
expected to lead to annual savings of approximately $8.0 million
that will positively impact operating results in fiscal 2008 with
benefits also anticipated to positively affect net income in the
fourth quarter of fiscal 2007. Peter Edison, Chairman and Chief
Executive Officer of Bakers Footwear Group, stated: �We are pleased
to announce the sale of an operating lease, as it allows us to
improve our liquidity with no anticipated impact on our 2008
operations. These proceeds, combined with the $8 million in cost
savings that we expect to be generated from our expense reductions,
should improve fourth quarter fiscal 2007 and fiscal 2008 operating
results.� �We are also pleased by the improvement in our sales
trends in November,� Mr. Edison continued. �Sales trends during the
month improved considerably from the trends reported in our third
quarter, reflecting a good response to our boot offerings across
key styles. This is a direct reflection of the fresh ideas and
trend-right perspective of our new merchandising leadership. We
believe we have addressed the issues that negatively affected our
recent results. We move forward with inventory that is well
controlled, down more than 21% from the third quarter last year,
with November unit selloff the highest since November 2004. We
remain hopeful in our outlook and expect to report continued
progress in our business during the fourth quarter.� About Bakers
Footwear Group, Inc. Bakers Footwear Group, Inc. is a national,
mall-based, specialty retailer of distinctive footwear and
accessories for young women. The Company�s merchandise includes
private label and national brand dress, casual and sport shoes,
boots, sandals and accessories. The Company currently operates over
250 stores nationwide. Bakers� stores focus on women between the
ages of 16 and 35. Wild Pair stores offer fashion-forward footwear
to both women and men between the ages of 17 and 29. THIS PRESS
RELEASE CONTAINS FORWARD-LOOKING STATEMENTS (WITHIN THE MEANING OF
SECTION 27(A) OF THE SECURITIES ACT OF 1933 AND SECTION 21(E) OF
THE SECURITIES EXCHANGE ACT OF 1934). BAKERS FOOTWEAR HAS NO DUTY
TO UPDATE SUCH STATEMENTS. ACTUAL FUTURE EVENTS AND CIRCUMSTANCES
COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN THIS STATEMENT DUE
TO VARIOUS FACTORS. FACTORS THAT COULD CAUSE THESE CONDITIONS NOT
TO BE SATISFIED INCLUDE MATERIAL CHANGES IN CAPITAL MARKET
CONDITIONS OR IN BAKERS FOOTWEAR�S BUSINESS, PROSPECTS, RESULTS OF
OPERATIONS OR FINANCIAL CONDITION AND OTHER RISKS AND
UNCERTAINTIES, INCLUDING THOSE DETAILED IN BAKERS FOOTWEAR�S
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
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