Bakers Footwear Group, Inc. reported sales in the first quarter were $47.0 million, an increase of 8.0 percent, from $43.5 million in the first quarter of fiscal 2010. Comparable store sales increased 9.3 percent compared to a decline of 1.6 percent in the first quarter of fiscal 2010.
Gross profit was $12.3 million, or 26.1 percent of net sales, compared to $10.7 million, or 24.7 percent of net sales, in the first quarter last year. The 140 basis point expansion in gross profit margin as compared to the first quarter last year was driven by leverage in buying and occupancy costs;
Selling, general and administrative expenses were $14.3 million, or 30.5 percent of net sales, compared to $13.6 million, or 31.2 percent of net sales, in the prior-year period;
Operating loss was $2.1 million compared to a $2.9 million operating loss in the first quarter last year; and
Net loss was $2.5 million, or 27 cents per diluted share, compared to a net loss of $3.5 million, or 47 cents per diluted share, in the first quarter last year.
Peter Edison, Chairman and Chief Executive Officer of Bakers Footwear Group commented, “We began the year solidly, reporting increased first quarter sales, increased comparable store sales and a significant improvement in our operating performance compared to the first quarter last year. During the quarter, our customers responded positively to our footwear assortments across categories led by dress shoes, wedges and open-toe sandals. Our exclusive brands H by Halston and Wild Pair continued to grow and assisted us to broaden our customer reach and raise average unit retail, as we provide differentiation and great fashion with these compelling brands. Combined, this fueled a 9.3 percent increase in comparable store sales and a 140 basis point expansion in gross profit margin, as compared to the first quarter of fiscal 2010. We ended the first quarter with a 17 percent increase in inventory which we believe is supporting our sales momentum into the second quarter.”
“As we look ahead, we are optimistic about our business and expect to continue our improving performance,” Edison continued. “Validating this expectation is the 12.3 percent increase in our comparable store sales for the first six weeks of the second quarter. We expect to maintain our fashion leadership, as we present our customers with enticing styles across categories. We will continue to expand our exclusive H by Halston and Wild Pair brands and generate excitement for our Bakers stores and e-commerce channels with marketing and social media campaigns. At the same time, we will maintain our expense discipline. We continue to believe our strategies have us poised to improve our operating performance.”
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.
