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8-K - FORM 8-K - BAKERS FOOTWEAR GROUP INC | c65174e8vk.htm |
EX-99.2 - EX-99.2 - BAKERS FOOTWEAR GROUP INC | c65174exv99w2.htm |
Exhibit 99.1
Company Contact: | ||
Charles R. Daniel, III | ||
Chief Financial Officer | ||
(314) 621-0699 | ||
Final: For Release |
||
Investor Contacts: | ||
ICR, Inc. | ||
Allison Malkin/Farah Soi | ||
(203) 682-8225/8264 |
BAKERS FOOTWEAR GROUP REPORTS FIRST QUARTER 2011 RESULTS
First Quarter Comparable Store Sales Increase 9.3%
Gross Margin Improves to 26.1% From 24.7% in First Quarter 2010
Comparable Store Sales Increase 12.3% for the First Six Weeks of the Second Quarter
First Quarter Comparable Store Sales Increase 9.3%
Gross Margin Improves to 26.1% From 24.7% in First Quarter 2010
Comparable Store Sales Increase 12.3% for the First Six Weeks of the Second Quarter
ST. LOUIS, Mo. June 14, 2011 Bakers Footwear Group, Inc. (OTC Bulletin Board: BKRS.OB), a
leading specialty retailer of moderately priced fashion footwear for young women, with 231 stores,
today announced results for the thirteen weeks ended April 30, 2011.
For the first quarter, the thirteen weeks ended April 30, 2011:
| Net sales were $47.0 million, an increase of 8.0%, from $43.5 million in the first quarter of fiscal 2010; | ||
| Comparable store sales increased 9.3% compared to a decline of 1.6% in the first quarter of fiscal 2010; | ||
| Gross profit was $12.3 million, or 26.1% of net sales, compared to $10.7 million, or 24.7% 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% of net sales, compared to $13.6 million, or 31.2% 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 $0.27 per diluted share, compared to a net loss of $3.5 million, or $0.47 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% 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% 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, Mr. Edison continued. Validating this expectation is the 12.3% 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 Companys 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. The Companys most recent Quarterly Report on Form
10-Q, filed today, and the Companys most recent Annual Report on Form 10-K discuss the Companys
business plan and disclose in detail the risks of the Companys current liquidity situation and its
ability to comply with its financial covenants.
Conference Call
The Company announced that it will conduct a conference call to discuss its first quarter results
today, Tuesday, June 14, 2011 at 9:00 a.m. Eastern Time. Investors and analysts interested in
participating in the call are invited to dial 877-407-0784, approximately five minutes prior to the
start of the call. The conference call will also be webcast live at
http://viavid.net/dce.aspx?sid=00008772. A replay of this call will be available until
June 21, 2011 and can be accessed by dialing 877-870-5176 and entering PIN number 373643. The
webcast will remain available until August 14, 2011 at the same web address.
About Bakers Footwear Group, Inc.
Bakers Footwear Group, Inc. is a national, mall-based, specialty retailer of distinctive footwear
and accessories for young women. The Companys merchandise includes private label and national
brand dress, casual and sport shoes, boots, sandals and accessories. The Company currently operates
231 stores nationwide. Bakers stores focus on women between the ages of 16 and 35. Wild Pair
stores offer fashion-forward footwear to women between the ages of 17 and 29.
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS (WITHIN THE MEANING OF SECTION 27(A) OF THE
SECURITIES ACT OF 1933 AND SECTION 21(E) OF THE SECURITIES EXCHANGE ACT OF 1934). BAKERS FOOTWEAR
HAS NO DUTY TO UPDATE SUCH STATEMENTS. ACTUAL FUTURE EVENTS AND CIRCUMSTANCES COULD DIFFER
MATERIALLY FROM THOSE SET FORTH IN THIS STATEMENT DUE TO VARIOUS FACTORS. FACTORS THAT COULD CAUSE
THESE CONDITIONS NOT TO BE SATISFIED INCLUDE INABILITY TO SATISFY DEBT COVENANTS, MATERIAL DECLINES
IN SALES TRENDS AND LIQUIDITY, MATERIAL CHANGES IN CAPITAL MARKET CONDITIONS OR IN BAKERS
FOOTWEARS BUSINESS, PROSPECTS, RESULTS OF OPERATIONS OR FINANCIAL CONDITION, AND OTHER RISKS AND
UNCERTAINTIES, INCLUDING THOSE DETAILED IN BAKERS FOOTWEARS MOST RECENT ANNUAL REPORT ON FORM 10-K
AND MOST RECENT QUARTERLY REPORT ON FORM 10-Q, INCLUDING THOSE DISCUSSED IN RISK FACTORS, IN
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS AND IN NOTE
2 TO THE FINANCIAL STATEMENTS IN THESE REPORTS, AND IN ITS OTHER FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION.
Bakers Footwear Group, Inc.
Thirteen | Thirteen | |||||||
Weeks Ended | Weeks Ended | |||||||
Income Statement Data | April 30, 2011 | May 1, 2010 | ||||||
(in thousands, except per share data) | Unaudited | Unaudited | ||||||
Net sales |
$ | 47,013 | $ | 43,524 | ||||
Cost of merchandise sold, occupancy, and
buying expenses |
34,756 | 32,788 | ||||||
Gross profit |
12,257 | 10,736 | ||||||
Operating expenses |
||||||||
Selling |
10,197 | 9,804 | ||||||
General and administrative |
4,123 | 3,791 | ||||||
Loss on disposal of property and equipment |
3 | 51 | ||||||
Operating loss |
(2,066 | ) | (2,910 | ) | ||||
Interest expense |
(461 | ) | (555 | ) | ||||
Other income, net |
10 | 14 | ||||||
Loss before income taxes |
(2,517 | ) | (3,451 | ) | ||||
Income tax benefit |
| | ||||||
Net loss |
$ | (2,517 | ) | $ | (3,451 | ) | ||
Net loss per common share |
$ | (0.27 | ) | $ | (0.47 | ) | ||
Weighted average shares outstanding |
9,262 | 7,383 | ||||||
Cash Flow Data |
||||||||
Cash used in operating activities |
$ | (3,995 | ) | $ | (1,644 | ) | ||
Cash used in investing activities |
(214 | ) | (420 | ) | ||||
Cash provided by financing activities |
4,277 | 2,058 | ||||||
Net increase (decrease) in cash |
67 | (5 | ) | |||||
Supplemental Data |
||||||||
Comparable store sales increase (decrease) |
9.3 | % | (1.6 | )% | ||||
Gross profit percentage |
26.1 | % | 24.7 | % | ||||
Unused borrowing capacity at end of period |
$ | 1,624 | $ | 1,437 | ||||
Number of stores at end of period |
231 | 239 |
Bakers Footwear Group, Inc.
Balance Sheet Data | April 30, 2011 | May 1, 2010 | ||||||
(in thousands) | Unaudited | Unaudited | ||||||
Cash |
$ | 214 | $ | 149 | ||||
Accounts receivable |
1,841 | 1,955 | ||||||
Inventories |
27,191 | 23,248 | ||||||
Other current assets |
924 | 1,000 | ||||||
Current assets |
30,170 | 26,352 | ||||||
Property and equipment, net |
17,334 | 23,465 | ||||||
Other assets |
1,011 | 771 | ||||||
$ | 48,515 | $ | 50,588 | |||||
Accounts payable |
$ | 14,716 | $ | 13,217 | ||||
Revolving credit facility |
14,726 | 13,277 | ||||||
Subordinated secured term loan |
| 2,177 | ||||||
Subordinated convertible debentures |
| 4,000 | ||||||
Other current liabilities |
11,039 | 10,047 | ||||||
Current liabilities |
40,481 | 42,718 | ||||||
Accrued noncurrent rent liabilities |
8,310 | 9,099 | ||||||
Subordinated convertible debentures |
4,000 | | ||||||
Subordinated debenture |
4,138 | | ||||||
Shareholders deficit |
(8,414 | ) | (1,229 | ) | ||||
$ | 48,515 | $ | 50,588 | |||||