US retailer Bakers Footwear Group said that the first quarter net loss was US$4.9m, compared to $1.0m in the same period last year, with sales declining amid cooler weather.

Net sales were $43.5m, compared to $49.3m for the thirteen-week period ended 5 May 2007. Same-store sales for the first quarter decreased 11.1%, compared to a decrease of 9.3% in the prior-year period

During the first quarter of fiscal 2008, the company opened one new store and closed one store, ending the quarter with 249 total stores.

Peter Edison, chairman and chief executive officer of Bakers Footwear Group commented: "Our first quarter results reflected a difficult start to the spring selling season driven by unseasonably cool weather and an early Easter holiday as compared to last year. Comparable store sales in February and March were down 16.1% but rebounded nicely in April, to flat comparable store sales, due to strong customer response to our open-toe footwear assortment, demonstrating the strength of our merchandising team.

"During the quarter, we also achieved our cost reduction goals and continue to expect this effort to positively impact operating results this year. In addition, we were pleased to maintain our tight inventory discipline during the quarter with inventories at quarter end down 15% from the prior-year period. As we begin the second quarter, we remain optimistic."

The footwear firm continues to face considerable liquidity constraints, it said, as a result of lower sales and had negative working capital of $12.8m and unused borrowing capacity under its revolving line of credit of $2.5m. As of 31 May, unused borrowing capacity was $0.6m. During the first quarter of 2008, it obtained net proceeds of $6.7m from the entry into a $7.5m three year subordinated secured term loan and the issuance of 350,000 shares of common stock.

Edison added: "We continue to believe we have adequate liquidity to operate throughout 2008 and a business plan that allows us to meet our debt covenants. In addition, we have continued to cut costs and eliminate underperforming stores. Both of these initiatives will augment our liquidity and profit plans."

The company's business plan for fiscal year 2008 continues to be based on moderate increases in comparable store sales beginning in the second quarter and continuing through the remainder of the year, improved gross margins, and expense reductions, a statement said.