Bakers Footwear Group, Inc. reported third quarter sales decreased
13.4% to $40.3 million, compared to $46.6 million a year earlier.
Comps decreased 16.6%, compared to a 4.2% decline in the comparable
period last year.
For the thirty-nine weeks ended November 3, net sales decreased 8.4% to
$131.5 million from $143.5 million. Year to date comparable store sales
decreased 14.6% compared to a 3.8% decrease a year ago.
Peter Edison, chairman and CEO of Bakers Footwear Group, stated: “We
remain disappointed with our sales results, which have been affected
this year by uninspiring footwear trends such as flats, which have not
resonated as well as we hoped with our core customer. In addition,
during the third quarter, unseasonable weather impacted boot sales and
combined with softness in sandals earlier in the quarter led to the
16.6% decline in comparable store sales for the period. As we begin the
fourth quarter, sales of boots, a significant percentage of our
business during the holiday season, have improved, coinciding with more
seasonal temperatures, indicating a more favorable consumer response to
these offerings. In addition, we expect to achieve the initial benefits
from our cost reduction initiatives.”
“Our management team is intently focused on improving the productivity
and profitability of Bakers Footwear Group,” Mr. Edison continued. “We
are moving our merchandise direction back to the strategies that have
proved successful for us in the past and are equally focused on
maintaining tight inventory discipline and expense control. To this
end, inventory at quarter end is well controlled and our cost reduction
plan is on track and expected to generate $8.0 million of savings,
positively impacting operating results in fiscal 2008 with benefits
also expected to positively impact net income in the fourth quarter of
fiscal 2007.”
The company noted that on September 24, it identified and commenced
actions to generate approximately $8 million of cost savings that will
positively impact operating results in fiscal 2008 with benefits also
expected to positively affect net income in the fourth quarter of
fiscal 2007. It currently expects to incur one-time charges in the
third quarter of 2007 of approximately $4 million to $5 million of
which approximately $1 million will be actual cash payments. These
charges will include severance costs, asset write-offs and store
impairment charges, as well as additional merchandise markdowns.
Bakers Footwear Company currently operates over 250 stores nationwide under the Bakers and Wild Pair names.
