Big Dog Holdings, Inc. first quarter consolidated net sales were $38.7 million, a 23% increase, as compared with $31.3 million in the first quarter 2005.
Consolidated net sales increased primarily due to the addition of 63 new Walking Company stores which includes 45 Steve Shoes stores, an acquisition that closed in January this year.
Comparable retail store sales increased 7.8% at The Walking Company during the quarter. Total consolidated gross profit for the quarter increased 20 basis points to 52.0% of net sales from 51.8% of net sales last year. Gross margin at TWC was said to be up 80 basis points.
For the total company, the net loss grew 30.9% to $3.2 million from $2.4 million during the year ago period. Diluted earnings per share reflected the widened loss at 35 cents per share, down from 26 cents in the year-ago quarter.
The company recently signed a 10 year lease on a build to suit 229,500 square foot distribution center just outside of Charlotte, North Carolina. The facility is scheduled to come on line and transition from the current 143,000 square foot distribution center located in Santa Fe Springs, California during the fourth quarter 2006.
The company will begin shipping from its new distribution center in January 2007 and is estimating a $4 million capital expenditures budget for this project.
