Bakers Footwear Group, Inc. (Nasdaq: BKRS), a leading specialty
retailer of moderately priced fashion footwear for young women,
with 241 stores, today announced results for the thirteen weeks and
thirty nine-weeks ended November 1, 2008. For the third quarter,
the thirteen weeks ended November 1, 2008: Net sales were $41.1
million, an increase of 1.9% from $40.3 million for the
thirteen-week period ended November 3, 2007; Comparable store sales
for the third quarter of fiscal 2008 increased 4.5%, compared to a
decrease of 16.6% in the prior-year period; Gross profit was $9.0
million, or 21.9% of net sales, up from $3.5�million, or 8.7% of
net sales in the third quarter last year; Impairment expense was
$2.6 million, reflecting non-cash charges in connection with
specific underperforming stores, compared to impairment expense of
$2.4 million in the third quarter last year. Operating loss was
$7.6 million, compared to $14.9 million in the third quarter last
year; and Net loss was $8.3 million or ($1.18) per share, compared
to $15.3 million, or ($2.35) per share in the third quarter last
year. Peter Edison, Chairman and Chief Executive Officer of Bakers
Footwear Group commented, �We are pleased with our improved third
quarter performance that included a 4.5% increase in comparable
store sales, a substantial increase in gross profit margin and a
significant reduction in our operating loss compared to last year.
This was driven by the strong acceptance of our footwear styles
across categories and through the benefits of our expense and
inventory management discipline. Despite the challenging consumer
environment, our sales strengthened throughout the quarter, with
healthy regular price selling led by our dress shoes, boots and
branded athletic categories.� �As we look ahead, we remain
optimistic about our ability to maintain our positive momentum,�
Mr. Edison continued. �We are experiencing favorable customer
response to our holiday assortments, with November comparable store
sales up 3.6%, including a 13.4% increase for the Thanksgiving
weekend of Black Friday, November 28, 2008 and Saturday, November
29, 2008 compared to the Friday and Saturday after Thanksgiving
last year. At the same time, we are operating the business with
prudent control of our inventory and expenses. Our inventory level
is well controlled, the increase at the end of the third quarter
reflects the acceleration of fourth quarter deliveries as well as
our expected sales increase during the holiday season. We plan to
end the fourth quarter with inventory flat compared to the prior
year. We will continue to maintain our financial discipline and
believe we are positioned to report improved operating results for
the balance of the year.� 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 the remainder of 2008. The
Company�s Quarterly Report on Form 10-Q, issued today and the
Company�s 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. For the first nine months of
fiscal 2008, the thirty-nine weeks ended November 1, 2008: Net
sales were $128.2 million, compared to $131.5 million for the
thirty-nine weeks ended November 3, 2007. Comparable store sales
decreased 0.8%, compared to a 14.6% decrease in the first nine
months of 2007; Gross profit was $33.1 million, or 25.8% of net
sales, compared to $28.1�million, or 21.3% of net sales in the
first nine months of 2007; Impairment expense was $2.6 million,
reflecting non-cash charges in connection with specific
underperforming stores, compared to impairment expense of $3.1
million last year. Operating loss was $13.1 million, compared to
$23.2 million in the first nine months of 2007; and Net loss was
$15.5 million or ($2.20) per share, compared to $25.0 million, or
($3.85) per share in the first nine months of 2006. Conference Call
The Company also announced that it will conduct a conference call
to discuss its third quarter fiscal 2008 results today, Tuesday,
December 9, 2008 at 9:00 a.m. Eastern Time. Investors and analysts
interested in participating in the call are invited to dial (877)
407-4018, approximately five minutes prior to the start of the
call. The conference call will also be webcast live at
http://viavid.net/dce.aspx?sid=00005ACB. A replay of this call will
be available until December 16, 2008 and can be accessed by dialing
(877) 660-6853, referencing account number 3055 and entering
confirmation number 305311. The webcast will remain available until
January 9, 2009 at the same web address. 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 240 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 INABILITY TO SATISFY DEBT COVENANTS,
MATERIAL DECLINES IN SALES TRENDS AND LIQUIDITY, MATERIAL CHANGES
IN CAPITAL MARKET CONDITIONS OR IN BAKERS FOOTWEAR�S BUSINESS,
PROSPECTS, RESULTS OF OPERATIONS OR FINANCIAL CONDITION, INABILITY
TO COMPLY WITH NASDAQ LISTING REQUIREMENTS AND OTHER RISKS AND
UNCERTAINTIES, INCLUDING THOSE DETAILED IN BAKERS FOOTWEAR�S MOST
RECENT ANNUAL REPORT ON FORM 10-K AND OUR MOST RECENT QUARTERLY
REPORTS ON FORM 10-Q, INCLUDING THOSE DISCUSSED IN �RISK FACTORS,�
IN �MANAGEMENT�S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND
RESULTS OF OPERATIONS� AND IN NOTE 2 TO THE FINANCIAL STATEMENTS IN
THESE REPORTS, AND IN BAKERS FOOTWEAR�S OTHER FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION. � � � � � Bakers Footwear
Group, Inc. � � Income Statement Data � � Thirteen Weeks Ended
November 1, 2008 � Thirteen Weeks Ended November 3, 2007 �
Thirty-nine Weeks Ended November 1, 2008 � Thirty-nine Weeks Ended
November 3, 2007 (in thousands, except per share data) Unaudited
Unaudited Unaudited Unaudited � Net sales $ 41,075 $ 40,294 $
128,181 $ 131,534 Cost of merchandise sold, occupancy, and buying
expenses � 32,078 � � � 36,785 � � � 95,055 � � � 103,461 � Gross
profit 8,997 3,509 33,126 28,073 � Operating expenses Selling 9,931
11,228 30,838 34,333 General and administrative 4,016 4,753 12,411
13,704 Loss on disposal of property and equipment 67 18 321 63
Impairment of long-lived assets � 2,610 � � � 2,376 � � � 2,610 � �
� 3,131 � Operating loss (7,627 ) (14,866 ) (13,054 ) (23,158 ) �
Interest expense (768 ) (499 ) (2,297 ) (1,264 ) Other income, net
� 52 � � � 71 � � � 95 � � � 109 � Loss before income taxes (8,343
) (15,294 ) (15,256 ) (24,313 ) � Income tax expense � � � � � � �
� � 223 � � � 691 � � Net loss $ (8,343 ) $ (15,294 ) $ (15,479 ) $
(25,004 ) � Basic loss per share $ (1.18 ) � $ (2.35 ) � $ (2.20 )
� $ (3.85 ) Diluted loss per share $ (1.18 ) � $ (2.35 ) � $ (2.20
) � $ (3.85 ) � � Weighted average shares outstanding Basic 7,056
6,498 7,036 6,495 Diluted 7,056 6,498 7,036 6,495 � � Cash Flow
Data Cash used in operating activities $ (13,699 ) $ (7,688 ) Cash
used in investing activities (713 ) (3,985 ) Cash provided by
financing activities 14,394 11,513 Net decrease in cash (18 ) (160
) � Supplemental Data Comparable store sales increase (decrease)
4.5 % (16.6 %) (0.8 )% (14.6 %) Gross profit percentage 21.9 % 8.7.
% 25.8 % 21.3 % Number of stores at end of period 241 257 � � �
Bakers Footwear Group, Inc. Balance Sheet Data � � November 1, 2008
� November 3,2007 (in thousands) Unaudited Unaudited Cash $ 142 $
247 Accounts receivable 1,413 1,557 Inventories 27,184 21,635 Other
current assets � 1,235 � � 3,194 Current assets 29,974 26,633 �
Property and equipment, net 35,655 45,386 Other assets � 1,044 � �
1,192 $ 66,673 � $ 73,211 � Accounts payable $ 7,329 $ 10,289
Revolving credit facility 20,249 21,187 Subordinated secured term
loan 5,346 � Subordinated convertible debentures 4,000 � Other
current liabilities � 10,001 � � 11,007 Current liabilities �
46,925 � � 42,483 � Subordinated convertible debentures � 4,000
Other noncurrent liabilities 9,931 10,213 Shareholders� equity �
9,817 � � 16,515 $ 66,673 � $ 73,211
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