Bakers Footwear Group Inc announced results for the thirteen and thirty nine-weeks ended November 3, 2007.
For the third quarter, the thirteen weeks ended November 3, 2007:
Net sales were .3 million, compared to .6 million for the thirteen-week period ended October 28, 2006. Comparable store sales for the third quarter of fiscal 2007 decreased 16.6%, compared to a decrease of 4.2% in the prior-year period.
Gross profit was .5 million, or 8.7% of net sales, compared to .1 million, or 26.0% of net sales in the third quarter last year. The decline in gross margin reflects aggressive pricing actions taken to adjust our inventory to appropriate levels moving into the fourth quarter.
Selling, general and administrative expenses were unchanged at .0 million, but increased as a percentage of sales to 39.7% in the third quarter of 2007 from 34.3% in the third quarter last year.
Impairment expense was .4 million, reflecting non-cash charges in connection with specific underperforming stores. No impairment expense was recognized in the third quarter last year.
Net loss was .3 million or .35 per share, as compared to a net loss of .6 million or {list_cont}.40 per share in the third quarter last year.
Peter Edison, Chairman and Chief Executive Officer of Bakers Footwear Group said, We are disappointed with our third quarter results, which reflect a more aggressive clearance of sandals given the unfavorable response to this segment of our business early in the quarter, as well as unseasonably warm weather that led to lower levels of store traffic and affected boot sales during the latter half of the period.
On a positive note, during the quarter we moved swiftly to reduce costs and promoted key talent within our design, store and merchandising teams to infuse newness and excitement into our offerings. At the same time, we maintained our disciplined approach to inventory management.
We ended the third quarter with inventory down more than 21% from the third quarter last year and remain pleased with both the level and composition of our inventory, as we enter the fourth quarter.
We are achieving the cost reductions we anticipated and continue to expect to generate annual savings of .0 million, positively impacting operating results in fiscal 2008 with benefits also expected to positively affect net income in the fourth quarter this year.
In addition, our business trends have improved markedly from the third quarter with fourth quarter-to-date comparable store sales down 1.4% from the prior year. We believe these efforts have us positioned to achieve improved operating results in the fourth quarter and beyond. |
