Bakers Footwear Group, Inc. (Nasdaq: BKRS), the leading specialty
retailer of moderately priced fashion footwear for young women,
today announced results for the fourth quarter and fiscal year
ended January 28, 2006. Net sales in the fourth quarter, the
thirteen weeks ended January 28, 2006, were $61.3 million, an
increase of 37.7% from $44.5 million for the thirteen weeks ended
January 29, 2005. Comparable store sales in the fourth quarter
increased 24.5%, compared to a 0.1% decline in comparable store
sales in the same period last year. Gross profit increased 54.7% to
$23.1 million, or 37.7% of net sales, compared to $14.9 million, or
33.5% of net sales, in the same period last year. The Company's net
income in the fourth quarter increased $2.9 million to $4.5 million
compared to net income of $1.6 million in the comparable period in
the prior year. Fourth quarter fiscal 2005 diluted earnings per
share increased to $0.68, compared to $0.31 in the comparable
period. Peter Edison, Chairman and Chief Executive Officer of
Bakers Footwear Group said, "Strong sales growth across a broad
range of footwear styles fueled record fourth quarter results, a
terrific end to an outstanding year for Bakers Footwear Group. We
attribute the ongoing momentum in our sales and earnings this year
to our ability to identify and interpret fashion trends combined
with the successful expansion of our new Bakers store format.
Additionally, our profitability gains exceeded sales growth, which
demonstrated our ability to strengthen gross margin and leverage
expenses." For the fiscal year ended January 28, 2006, net sales
increased 29.1% to $194.8 million, compared to net sales of $150.9
million for the fifty-two weeks ended January 29, 2005. Comparable
store sales for fiscal year 2005 year increased 16.7%, compared to
a comparable store sales increase of 1.4% last year. Gross profit
increased 45.9% to $65.3 million, or 33.5% of net sales, compared
to $44.8 million, or 29.7% of net sales, last year. The Company's
net income increased $7.3 million to $6.6 million from a net loss
of $695,000 in the comparable period. Fiscal year 2005 diluted
earnings per share increased to $1.04 compared to a loss per share
of $0.14 in the comparable period last year. The fiscal year ended
January 28, 2006 is the first fiscal year completed since Bakers
changed to an end-of-January fiscal period. For comparison
purposes, Bakers has used the fifty-two weeks ended January 29,
2005. Bakers' previous audited fiscal year encompassed the
fifty-two weeks ended January 1, 2005, during which time net sales
were $150.5 million, gross profit was $46.6 million, net income was
$1.4 million and diluted earnings per share was $0.28. During the
fourth quarter of fiscal 2005, the company opened six new stores in
its new Bakers format. The Company ended the year with 118 stores
in its new Bakers format. The Company operated a total of 235
Bakers and Wild Pair stores at the end of the fiscal year. Michele
Bergerac, President of Bakers Footwear Group, said, "Leading our
performance during the fourth quarter was strong regular price
selling of boots, dress shoes and closed casual footwear. Going
forward, we are intently focused on furthering our leadership
position in young women's fashion footwear and we believe that our
latest assortments along with the vitality of our Bakers Stores
have us well positioned to achieve this goal." Mr. Edison added,
"We believe our current offerings are trend right with notable
strength in closed dress and casual footwear. We anticipate our
comparable store sales for the 1st quarter will be up low to mid
single digits. A later Easter versus last year has delayed customer
purchases of sandals during the first quarter to date, but we
anticipate these sales will strengthen and drive results for us in
April. "For 2006, our priorities are to continue to expand our
store base while appealing to our consumers with differentiated and
stylish footwear and with creative marketing," Mr. Edison
continued. "Currently our fiscal 2006 plans are to open
approximately 30 to 35 new stores and remodel approximately 20 to
25 stores. We have also delivered our first ever Bakers catalog to
400,000 households. The catalog is performing well and should raise
our visibility and expand our brand reach. We continue to believe
our current initiatives in merchandising and marketing along with
the success of our new store format has us poised to deliver
another year of solid performance in fiscal 2006." Accounting for
Stock-Based Compensation Bakers' pro forma diluted earnings per
share, calculated as if SFAS 123 "Accounting for Stock-Based
Compensation" had been adopted, reflecting the pro forma effect of
recognizing stock-based compensation costs was $0.96 for the year
ended January 28, 2006, compared to reported diluted earnings per
share of $1.04. Bakers will adopt SFAS 123R "Share Based Payment"
effective January 29, 2006, the beginning of fiscal year 2006.
Bakers currently expects the impact of SFAS 123R on fiscal year
2006 compensation expense to be comparable to or slightly higher
than the pro forma effect under SFAS 123 in fiscal year 2005.
Annual Meeting The Company also announced that its 2006 Annual
Meeting of Stockholders will be held on June 1, 2006 in St. Louis,
Missouri. Details regarding time and location will be announced
later. Conference Call The Company also announced that it will
conduct a conference call to discuss its fourth quarter and fiscal
2005 results today, Monday, April 3, 2006 at 9:00 a.m. Eastern
Time. Investors and analysts interested in participating in the
call are invited to dial (800) 811-0667, approximately five minutes
prior to the start of the call. The conference call will also be
web-cast live at http://viavid.net/dce.aspx?sid=00002E63. A replay
of this call will be available until April 10, 2006 and can be
accessed by dialing (888) 203-1112 and entering code 7479658. The
web-cast will remain available until May 6, 2006 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 Company's merchandise
includes private label and national brand dress, casual and sport
shoes, boots, sandals and accessories. The Company currently
operates over 225 stores nationwide under two formats, Bakers and
Wild Pair. Bakers' stores focus on women between the ages of 16 and
35. Wild Pair stores offer fashion-forward footwear to both women
and men 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 MATERIAL CHANGES IN CAPITAL MARKET CONDITIONS OR
IN BAKERS FOOTWEAR'S BUSINESS, PROSPECTS, RESULTS OF OPERATIONS OR
FINANCIAL CONDITION AND OTHER RISKS AND UNCERTAINTIES, INCLUDING
THOSE DETAILED IN BAKERS FOOTWEAR'S FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION. Table follows: -0- *T Bakers Footwear Group,
Inc. Unaudited Thirteen Thirteen Fifty-two Fifty-two Weeks Weeks
Weeks Weeks Ended Ended Ended Ended January 28, January 29, January
28, January 29, 2006 2005 2006 2005
----------------------------------------------------------------------
Income Statement Data (in thousands, except per share data)
Unaudited Unaudited Unaudited Unaudited Net sales $61,338 $44,545
$194,780 $150,911 Cost of merchandise sold, occupancy, and buying
expenses 38,228 29,605 129,439 106,140
---------------------------------------------- Gross profit 23,110
14,940 65,341 44,771 Operating expenses 15,770 12,259 54,624 45,279
---------------------------------------------- Operating income
(loss) 7,340 2,681 10,717 (508) Interest expense (118) (153) (427)
(847) Other income, net 90 129 212 338
---------------------------------------------- Income (loss) before
income taxes 7,312 2,657 10,502 (1,017) Income tax expense
(benefit) 2,784 1,025 3,949 (322)
---------------------------------------------- Net income (loss)
$4,528 $1,632 $6,553 $(695)
============================================== Basic earnings
(loss) per share $0.73 $0.32 $1.10 $(0.14)
============================================== Diluted earnings
(loss) per share $0.68 $0.31 $1.04 $(0.14)
============================================== Weighted average
shares outstanding Basic 6,237 5,102 5,981 4,974 Diluted 6,657
5,343 6,279 4,974 Pro Forma SFAS 123 Information Pro forma earnings
(loss) per share reflecting pro forma stock compensation expense in
accordance with SFAS 123 Basic earnings (loss) per share $0.70
$0.30 $1.00 $(0.22) ==============================================
Diluted earnings (loss) per share $0.66 $0.29 $0.96 $(0.22)
============================================== Cash Flow Data Cash
provided by operating activities 13,993 6,493 17,536 5,629 Cash
used in investing activities (5,674) (4,108) (22,694) (12,479) Cash
provided by (used in) financing activities (4,522) (1,094) 7,651
7,972 Supplemental Data Comparable store sales increase (decrease)
24.5% (0.1)% 16.7% 1.4% Gross profit percentage 37.7% 33.5% 33.5%
29.7% Number of stores at end of period 235 218 January 28, January
29, Balance Sheet Data 2006 2005
----------------------------------------------------------------------
Unaudited Unaudited Cash $3,925 $1,432 Accounts receivable 2,371
1,342 Inventories 25,998 17,802 Other current assets 3,072 4,041
------------------- Current assets 35,366 24,617 Property and
equipment, net 38,701 21,728 Other assets 687 378
------------------- $74,754 $46,723 =================== Current
liabilities $27,600 $16,389 Noncurrent liabilities 6,764 5,125
Shareholders' equity 40,390 25,209 ------------------- $74,754
$46,723 =================== *T
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