Bakers Footwear Group, Inc. reported net sales for the first quarter ended May 2 increased 3.3% to $45.0 million from $43.5 million in the year ago period. Comparable store sales for the same period were up 4.8% as compared to a decrease of 11.1% in the year-ago period. Gross profit was $12.7 million, or 28.2% of net sales, as compared to $11.3 million, or 25.8% of net sales in the first quarter of last year.

Operating loss was $1.9 million compared to an operating loss of $4.1 million in the first quarter last year.
 
Adjusted EBITDA was $263,000 compared to negative adjusted EBITDA of $1.6 million in the first quarter last year while net loss was $2.8 million or 39 cents per share, compared to a net loss of $4.9 million, or 70 cents per share in the first quarter last year.
 
“We began the year solidly, reporting a 4.8% increase in first quarter comparable store sales, a 240 basis point increase in gross profit margin, positive adjusted EBITDA and a significant reduction of our loss, compared to the first quarter last year,” said Peter Edison, Chairman and CEO of Bakers Footwear Group.

“As we begin the second quarter, we are pleased with our positioning,” Edison continued. “Sales trends have remained positive with May’s comparable store sales increase of 3.1%, marking our twelfth consecutive month of positive comp results. Open-toe footwear continues to lead our performance, which bodes well given that it increases as a percentage of our mix throughout the second quarter. We believe the strength in our offerings coupled with fiscal discipline has us poised to generate improved operating results and adjusted EBITDA during the remainder of fiscal 2009.”

Based on the company’s business plan, the company said it 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 2009. 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.