Net sales at The Walking Co. increased 19.5% for the year ended Dec. 31, to $162.1 million from $135.7 million last year. The chain, which is part of Big Dog Holdings, reported that $10 million of the increase related to an 8.1% increase in comparable store sales, which includes TWC catalog/Internet sales after April 1, 2007.

 

Additionally, $14.5 million of the increase was attributable to new stores; $1.5 million was attributable to the acquisition of Steve’s Shoes in January 2006; and $400,000 was attributable to an increase in the company’s catalog/Internet business prior to being included in comp sales.

TWC recorded a net loss for the year of $791,000 compared to net income of $2.3 million for 2006. Gross margins remained fairly even at 51.3% versus 51.7% a year ago, but the chain incurred increased expenses related to operating the Steve’s Shoes stores acquired out of bankruptcy, and an increase in corporate infrastructure to facilitate future growth in TWC. The bottom line was also hurt by an increase in interest expense to $2.85 million from $1.32 million at the segment. Borrowings increased as a result of new store construction, the Steve’s Shoes acquisition and additional working capital requirement.


TWC operated 186 specialty stores as of December 31.