Bakers Footwear Group, Inc. reported sales  were $44.3 million in its second quarter, an increase of 2.3 percent, from $43.3 million in the second quarter of fiscal 2010. Comparable store sales increased 4.7 percent compared to an increase of 0.2 percent in the second quarter of fiscal 2010.

Gross profit was $13.0 million, or 29.3 percent of net sales, compared to $11.9 million, or 27.5 percent of net sales, in the second quarter last year. The 180 basis point expansion in gross profit margin as compared to the second quarter last year was driven by increased merchandising margins reflecting strength in higher margin dress shoes and improved leverage of buying and occupancy costs.

Selling, general and administrative expenses were $14.1 million, or 31.8 percent of net sales, compared to $13.5 million, or 31.2 percent of net sales, in the prior-year period.

Operating loss decreased to $1.1 million compared to a $1.6 million operating loss in the second quarter last year.

Net loss was $1.6 million, or $0.17 per diluted share, compared to a net loss of $2.1 million, or $0.28 per diluted share, in the second quarter last year.

Peter Edison, Chairman and Chief Executive Officer of Bakers Footwear Group, commented, “We are pleased to report improved second quarter results and continue our positive momentum from the first quarter. The second quarter included a 4.7 percent increase in comparable store sales, a 180 basis point expansion in gross margin and a reduction of our operating loss as compared to the second quarter last year reflecting the progress of our merchandising, marketing and margin enhancement initiatives. During the quarter, our customers responded favorably to our dress and club assortments, which more than offset a challenging casual sandal season. We also saw continued strength in our exclusive H. By Halston and Wild Pair brands, which we believe have served to increase customer loyalty and broaden our consumer, reach. In addition, our e-commerce sales rose 16.2 percent, as we capitalize on the significant opportunity that exists for us online.”

“We are encouraged by our positioning as we begin the third quarter,” Mr. Edison continued. “Our comparable store sales are improving as the fall season progresses reflecting continued positive trends in closed footwear in all categories. We also expect to continue the improvement in merchandise margin over last year as we further optimize our promotional cadence and capitalize on opportunities to elevate our assortments. We remain confident in our strategies and our ability to generate improved operating performance in 2011.”

For the first half of fiscal 2011, the twenty-six weeks ended July 30, 2011:


  • Net sales were $91.3 million, an increase of 5.2 percent compared to $86.8 million for the twenty-six weeks ended July 31, 2010;
  • Comparable store sales increased 7.1 percent, compared to a decrease of 0.7 percent in the first half of 2010;
  • Gross profit was $25.2 million, or 27.6 percent of net sales, compared to $22.7 million, or 26.1 percent of net sales in the first half of 2010;
  • Operating loss was $3.2 million, compared to $4.5 million in the first half of 2010; and
  • Net loss was $4.1 million or $0.44 per share, compared to a net loss of $5.5 million, or $0.75 per share in the first half of 2010.
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 2011. The Company's most recent Quarterly Report on Form 10-Q, filed today, and the Company's most recent Annual Report on Form 10-K discuss the Company's business plan and disclose in detail the risks of the Company's current liquidity situation and its ability to comply with its financial covenants.

Bakers Footwear operates 233 stores nationwide.