Bakers Footwear widens Q2 loss, president resigns

US: Bakers Footwear widens Q2 loss, president resigns

By just-style.com | 19 September 2007

Women's shoe retailer Bakers Footwear Group Inc has widened its second quarter loss on what it described as a "disappointing" performance as it tried to clear summer merchandise, and said its president and director Michele Bergerac has resigned.

For the 13 weeks to 4 August, net loss was $8.7m or $1.35 per share, compared to a net loss of $1.0m, or $0.16 per share in the second quarter last year.

The St Louis-based company said net sales dropped 11.0% to $42.0m from $47.2m in last year's quarter.

Comparable store sales fell 18.3%, versus a decrease of 6.4% in the prior-year period.

Gross profit fell to $9.3m, or 22.1% of net sales, from $13.5m, or 28.6% of net sales.

Peter Edison, chairman and chief executive officer, said the second quarter and first half performance "reflected a challenging season for opened footwear, especially sandals."

He added: "As we look ahead, we are intently focused on moving our merchandise direction back to the strategies that have proved highly successful in the past and equally committed to maintaining tight inventory discipline and expense control."

For the first half of fiscal 2007, net loss widened to $9.7m or $1.50 per share from a net loss of $0.4m, or $0.06 per share in the first half of 2006. Sales were down 6.0% to $91.2m from $97.0m, and same-store sales slipped 13.6%.

Bakers Footwear, which has 257 Bakers and Wild Pair stores, has withdrawn its guidance for fiscal 2007 ahead of a number of one-time charges in the third quarter aimed at repositioning the company for fourth quarter profit.

In addition to Bergerac's resignation, other staff changes were announced by the company yesterday (18 September).

Mark Ianni, previously general merchandise manager has been promoted to the position of chief merchandising officer, and Joseph R Vander Pluym, previously vice president - stores has been named as chief operations officer.

Peter Edison, currently chairman and chief executive officer will assume the title of president.

Sectors: Finance, Footwear, Retail

Companies: Bakers Footwear