Bakers Footwear Group, Inc. announced net sales increased 33.9% for the third quarter, to $43.2 million from $32.3 million in 2004. Comparable store sales increased 21.0% compared to a 7.6% decrease last year. Net loss was $1.05 million, or 2.4% of net sales, versus the net loss of $2.6 million, or 8.0% of net sales in the third quarter of 2004.
— Operating loss decreased to $1.7 million, or 3.9% of net sales, from the operating loss of $4.0 million, or 12.3% of net sales in the same period a year ago;
Net loss was $1.05 million, or 2.4% of net sales, versus the net loss of $2.6 million, or 8.0% of net sales in the third quarter of 2004.
— Loss per share was $0.17 compared to a loss per share of $0.51 in the third quarter of 2004.
“The third quarter was a period of great improvement for us marked by robust regular priced sales of feminine fashion footwear,” stated Peter Edison, Chairman and Chief Executive Officer of Bakers Footwear Group. “This drove a 33.9% increase in sales and a 600 basis point rise in gross profit margin during the quarter. We also managed our expenses well achieving a 240 basis point improvement in operating expenses as a percentage of sales. We are pleased to have significantly reduced our operating loss this quarter.
Additionally, during the third quarter, the Company
— Opened eleven new stores and at quarter-end operated 234 stores in 36 states.
— Remodeled six stores and at quarter-end operated 112 stores, or 54% of its Bakers stores in the new store format.
“Our store expansion remains on track and includes opening 30 new stores and remodeling 25 stores this year,” Mr. Edison, continued. “Additionally, to accommodate our growth, we plan to move our St. Louis warehouse to a larger facility in the fourth quarter.”
Gross profit in the third quarter of 2005 improved to $11.8 million, or 27.4% of net sales, compared to $6.9 million, or 21.4% of net sales, in the third quarter of fiscal 2004. Operating expenses were $13.6 million, or 31.3% of net sales compared to $10.9 million, or 33.7% of net sales in the third quarter of fiscal 2004.
For the first nine months, the thirty-nine weeks ended October 29, 2005:
— Net sales increased 25.5%, to $133.4 million from $106.4 million for the thirty-nine weeks ended October 30, 2004. Comparable store sales increased 13.4% compared to a 1.9% increase in the prior year period;
— Operating income rose by $6.6 million to $3.4 million, or 2.5% of net sales, as compared to an operating loss of $3.2 million, or 3.0% of net sales in the same period a year ago;
— Net income increased $4.3 million to $2.0 million, or 1.5% of net sales, as compared to a net loss of $2.3 million, or 2.2% of net sales in the first nine months of 2004.
— Diluted earnings per share rose substantially to $0.33 compared to a loss per share of $0.47 in the first nine months of 2004.
Gross profit in the first nine months was $42.2 million, or 31.6% of net sales, compared to $29.8 million, or 28.0% of net sales, in the first nine months of fiscal 2004. Operating expenses were $38.9 million, or 29.1% of net sales compared to $33.0 million, or 31.0% of net sales in the first nine months of fiscal 2004.
Michele Bergerac, President of Bakers Footwear, said, “Our business this quarter was truly outstanding, as we correctly interpreted fashion trends for our customers experiencing particular strength in boots, dress shoes and closed casual footwear. As we begin the holiday period, we are pleased to see our positive momentum continue across our key footwear categories and in handbags. We believe our strategies in footwear along with our store opening and remodel programs have us poised to grow our leadership position as the primary destination for moderately priced fashion footwear.”
Mr. Edison continued: “We're very optimistic as we begin the holiday season. We remain focused on building upon our current strength and believe that our outstanding performance will continue. Our fourth quarter sales have started off even stronger than third quarter sales and we are excited by our upcoming deliveries.”
Bakers Footwear Group, Inc.
Thirteen Thirteen Thirty-nine Thirty-nine
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
October 29, October 30, October 29, October 30,
Income Statement Data 2005 2004 2005 2004
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(in thousands, except
per share data) Unaudited Unaudited Unaudited Unaudited
Net Sales $ 43,243 $ 32,286 $ 133,441 $ 106,365
Cost of merchandise
sold, occupancy, and
buying expenses 31,403 25,384 91,211 76,535
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Gross profit 11,840 6,902 42,230 29,830
Operating expenses 13,552 10,863 38,854 33,020
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Operating income
(loss) (1,712) (3,961) 3,376 (3,190)
Interest expense (96) (191) (309) (694)
Other , net 20 24 123 209
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Income (loss) before
income taxes (1,788) (4,128) 3,190 (3,675)
Income tax expense
(benefit) (738) (1,549) 1,165 (1,347)
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Net income (loss) $ (1,050) $ (2,579) $ 2,025 $ (2,328)
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Basic earnings
(loss) per share $ (0.17) $ (0.51) $ 0.34 $ (0.47)
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Diluted earnings
(loss) per share $ (0.17) $ (0.51) $ 0.33 $ (0.47)
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Weighted average
shares outstanding
Basic 6,198 5,102 5,896 4,930
Diluted 6,198 5,102 6,165 4,930
