Big Dog Holdings Inc., the parent of The Walking Company, reported sales for the quarter ended March 31, were $46.4 million, a 5% increase compared with $44.2 million a year ago. The revenue gain reflects the addition of 41 net new The Walking Company stores. The company had a total of 291 stores open (191 TWC stores and 100 Big Dogs stores) at the end of the period, as compared with 295 stores (150 TWC stores and 145 Big Dogs stores) a year ago. Comps decreased 1.9% for the quarter (0.5% decline for TWC chain and 6.6% decline for the Big Dogs chain.)


Total consolidated gross profit for the quarter decreased to 50.3% of net sales or $23,335,000 as compared with 52.7% of net sales or $23,300,000 in the first quarter 2007. Gross margins for TWC and Big Dogs decreased to 50.7% and 48.7% compared to 52.0% and 54.5%, respectively, for the same period last year.

 

Consolidated operating expenses in the first quarter 2008 were $29,962,000 or 64.6% of sales compared to $29,210,000 or 66.0% in 2007. Consolidated operating loss for the first quarter 2008 was $6,627,000 compared to $5,910,000 for the first quarter 2007. The consolidated net loss per share for the first quarter 2008 increased to $.52 per share, as compared with a consolidated net loss per share of $.44 per share for the first quarter 2007.


Andrew Feshbach, chief executive officer, stated, “Our corporate name change reflects the main focus of our business, which is the development and growth of the Walking Company operations. TWC is now more than twice as large as Big Dogs in sales and number of stores. Our 1st quarter results reflect a 15% increase in our TWC sales, all accomplished while reducing our corporate overhead expenses as compared to last year. Our consolidated gross margin was lower than last year due to a substantial shift of revenue from Big Dogs to TWC, as well as a one-time adjustment reflected in our prior year margin which related to the Steve's Shoes acquisition. So far our 2nd quarter TWC business is trending stronger than our 1st quarter, and we remain cautiously optimistic about the 2nd quarter and summer selling season.”


The company's Board of Directors also approved the change of the company's name to “The Walking Company Holdings, Inc.” The company's NASDAQ symbol will also be changed from BDOG to WALK. The change is expected to be effected within the next few days.