BKRS » Topics » Fiscal Year Ended February 3, 2007 Compared to Fiscal Year Ended January 28, 2006

These excerpts taken from the BKRS 10-K filed May 2, 2008.
Fiscal Year Ended February 3, 2007 Compared to Fiscal Year Ended January 28, 2006
 
Net sales.  Net sales were $204.8 million in fiscal year 2006, up from $194.8 million for fiscal year 2005, an increase of $10.0 million or 5.1%. The increase resulted from growth in stores to 257 in fiscal year 2006 from 235 in fiscal year 2005, offset by a 7.1% decrease in comparable store sales in fiscal year 2006 compared to a 16.7% increase in fiscal year 2005. Weak consumer demand for our sandal line during the first half of fiscal year 2006 and soft demand for boots, dress shoes and closed casuals during the second half of fiscal year 2006 were the primary causes for the comparable store sales decrease. Average unit selling prices increased 1.8% reflecting higher price points partially offset by greater promotional discounting compared to fiscal year 2005. Unit sales volume increased 3.3%. Our Internet and catalog sales increased 113.5% to $8.3 million in fiscal year 2006.
 
Gross profit.  Gross profit decreased to $62.2 million in fiscal year 2006 from $65.3 million in fiscal year 2005, a decrease of $3.1 million or 4.8%. The impact of new stores contributed $7.2 million of incremental gross profit which was more than offset by $4.2 million from the decrease in comparable store sales resulting from weak customer demand, and $6.1 million from reduced margins resulting from increased promotional activity necessary in light of softer demand for our spring and fall lines. Permanent markdown costs increased to $17.4 million in fiscal year 2006 from $16.0 million in fiscal year 2005. As a percentage of sales, gross profit decreased to 30.4% in fiscal year 2006 from 33.5% in fiscal year 2005.
 
Selling expense.  Selling expense increased to $45.2 million in fiscal year 2006 from $38.4 million in fiscal year 2005, an increase of $6.8 million or 17.8%. The increase was primarily the result of our store expansion and included a $2.4 million increase in store payroll and payroll taxes, a $2.2 million increase in store depreciation


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expense, and a $1.1 million increase in catalog printing and mailing expense. As a percentage of sales, selling expenses increased to 22.1% of sales from 19.7% in fiscal year 2005.
 
General and administrative expense.  General and administrative expense increased to $18.2 million in fiscal year 2006 from $15.8 million in fiscal year 2005, an increase of $2.4 million or 15.4%. This increase is primarily attributable to a $1.1 million increase in administrative wages and benefits and a $0.8 million increase in professional fees, including $0.4 million related to expenses incurred in considering potential equity financing. As a percentage of sales, general and administrative expense increased to 8.9% from 8.1% in fiscal year 2005.
 
Loss on disposal of property and equipment.  Loss on disposal of property and equipment decreased to $0.3 million in fiscal year 2006 from $0.4 million in fiscal year 2005. The loss relates primarily to expensing leasehold improvements and store fixtures due to store closings and remodelings.
 
Interest expense.  Interest expense increased to $1.0 million in fiscal year 2006 from $0.4 million in fiscal year 2005, an increase of $0.6 million. The increase in interest expense reflects the increase in our average borrowings on our revolving credit facility and an increase in interest rates compared to the prior year.
 
Income tax expense (benefit).  We recognized an income tax benefit of $0.9 million for fiscal year 2006 compared to income tax expense of $3.9 million for fiscal year 2005. Our effective tax rate in fiscal year 2006 was 37.1% reflecting an estimated combined net statutory federal and state income tax rate of 38% reduced by nondeductible permanent differences. Our effective tax rate in fiscal year 2005 was 37.6% reflecting an estimated combined net statutory federal and state income tax rate of 38% reduced by the favorable tax treatment of charitable contributions of inventory during the year.
 
Net income.  We had a net loss of $1.5 million in fiscal year 2006 compared to net income of $6.6 million in fiscal year 2005.
 
Fiscal
Year Ended February 3, 2007 Compared to Fiscal Year Ended
January 28, 2006



 



Net sales.  Net sales were $204.8 million
in fiscal year 2006, up from $194.8 million for fiscal year
2005, an increase of $10.0 million or 5.1%. The increase
resulted from growth in stores to 257 in fiscal year 2006 from
235 in fiscal year 2005, offset by a 7.1% decrease in comparable
store sales in fiscal year 2006 compared to a 16.7% increase in
fiscal year 2005. Weak consumer demand for our sandal line
during the first half of fiscal year 2006 and soft demand for
boots, dress shoes and closed casuals during the second half of
fiscal year 2006 were the primary causes for the comparable
store sales decrease. Average unit selling prices increased 1.8%
reflecting higher price points partially offset by greater
promotional discounting compared to fiscal year 2005. Unit sales
volume increased 3.3%. Our Internet and catalog sales increased
113.5% to $8.3 million in fiscal year 2006.


 



Gross profit.  Gross profit decreased to
$62.2 million in fiscal year 2006 from $65.3 million
in fiscal year 2005, a decrease of $3.1 million or 4.8%.
The impact of new stores contributed $7.2 million of
incremental gross profit which was more than offset by
$4.2 million from the decrease in comparable store sales
resulting from weak customer demand, and $6.1 million from
reduced margins resulting from increased promotional activity
necessary in light of softer demand for our spring and fall
lines. Permanent markdown costs increased to $17.4 million
in fiscal year 2006 from $16.0 million in fiscal year 2005.
As a percentage of sales, gross profit decreased to 30.4% in
fiscal year 2006 from 33.5% in fiscal year 2005.


 



Selling expense.  Selling expense increased to
$45.2 million in fiscal year 2006 from $38.4 million
in fiscal year 2005, an increase of $6.8 million or 17.8%.
The increase was primarily the result of our store expansion and
included a $2.4 million increase in store payroll and
payroll taxes, a $2.2 million increase in store
depreciation





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expense, and a $1.1 million increase in catalog printing
and mailing expense. As a percentage of sales, selling expenses
increased to 22.1% of sales from 19.7% in fiscal year 2005.


 



General and administrative expense.  General
and administrative expense increased to $18.2 million in
fiscal year 2006 from $15.8 million in fiscal year 2005, an
increase of $2.4 million or 15.4%. This increase is
primarily attributable to a $1.1 million increase in
administrative wages and benefits and a $0.8 million
increase in professional fees, including $0.4 million
related to expenses incurred in considering potential equity
financing. As a percentage of sales, general and administrative
expense increased to 8.9% from 8.1% in fiscal year 2005.


 



Loss on disposal of property and
equipment.
  Loss on disposal of property and
equipment decreased to $0.3 million in fiscal year 2006
from $0.4 million in fiscal year 2005. The loss relates
primarily to expensing leasehold improvements and store fixtures
due to store closings and remodelings.


 



Interest expense.  Interest expense increased
to $1.0 million in fiscal year 2006 from $0.4 million
in fiscal year 2005, an increase of $0.6 million. The
increase in interest expense reflects the increase in our
average borrowings on our revolving credit facility and an
increase in interest rates compared to the prior year.


 



Income tax expense (benefit).  We recognized an
income tax benefit of $0.9 million for fiscal year 2006
compared to income tax expense of $3.9 million for fiscal
year 2005. Our effective tax rate in fiscal year 2006 was 37.1%
reflecting an estimated combined net statutory federal and state
income tax rate of 38% reduced by nondeductible permanent
differences. Our effective tax rate in fiscal year 2005 was
37.6% reflecting an estimated combined net statutory federal and
state income tax rate of 38% reduced by the favorable tax
treatment of charitable contributions of inventory during the
year.


 



Net income.  We had a net loss of
$1.5 million in fiscal year 2006 compared to net income of
$6.6 million in fiscal year 2005.


 




This excerpt taken from the BKRS 10-K filed Apr 24, 2007.
Fiscal Year Ended February 3, 2007 Compared to Fiscal Year Ended January 28, 2006
 
Net sales.  Net sales were $204.8 million in fiscal year 2006, up from $194.8 million for fiscal year 2005, an increase of $10.0 million or 5.1%. The increase resulted from growth in stores to 257 in fiscal year 2006 from 235 in fiscal year 2005, offset by a 7.1% decrease in comparable store sales in fiscal year 2006 compared to a 16.7% increase in fiscal year 2005. Weak consumer demand for our sandal line during the first half of fiscal year 2006 and soft demand for boots, dress shoes and closed casuals during the second half of fiscal year 2006 were the primary causes for the comparable store sales decrease. Average unit selling prices increased 1.8% reflecting higher price points partially offset by greater promotional discounting compared to fiscal year 2005. Unit sales volume increased 3.3%. Our Internet and catalog sales increased 113.5% to $8.3 million in fiscal year 2006.
 
Gross profit.  Gross profit decreased to $62.2 million in fiscal year 2006 from $65.3 million in fiscal year 2005, a decrease of $3.1 million or 4.8%. The impact of new stores contributed $7.2 million of incremental gross profit which was more than offset by, $4.2 million for the decrease in comparable store sales resulting from weak customer demand, and $6.1 million for reduced margins resulting from increased promotional activity necessary in light of softer demand for our spring and fall lines. Permanent markdown costs increased to $17.4 million in fiscal year 2006 from $16.0 million in fiscal year 2005. As a percentage of sales, gross profit decreased to 30.4% in fiscal year 2006 from 33.5% in fiscal year 2005.
 
Selling expense.  Selling expense increased to $45.2 million in fiscal year 2006 from $38.4 million in fiscal year 2005, an increase of $6.8 million or 17.8%. The increase was primarily the result of our store expansion and included a $2.4 million increase in store payroll and payroll taxes, a $2.2 million increase in store depreciation expense, and a $1.1 million increase in catalog printing and mailing expense. As a percentage of sales, selling expenses increased to 22.1% of sales from 19.7% in fiscal year 2005.
 
General and administrative expense.  General and administrative expense increased to $18.2 million in fiscal year 2006 from $15.8 million in fiscal year 2005, an increase of $2.4 million or 15.4%. This increase is primarily attributable to a $1.1 million increase in administrative wages and benefits and a $0.8 million increase in professional fees, including $0.4 million related to expenses incurred in considering potential equity financing. As a percentage of sales, general and administrative expense increased to 8.9% from 8.1% in fiscal year 2005.
 
Loss on disposal of property and equipment.  Loss on disposal of property and equipment decreased to $0.3 million in fiscal year 2006 from $0.4 million in fiscal year 2005. The loss relates primarily to expensing leasehold improvements and store fixtures due to store closings and remodelings.
 
Interest expense.  Interest expense increased to $1.0 million in fiscal year 2006 from $0.4 million in fiscal year 2005, an increase of $0.6 million. The increase in interest expense reflects the increase in our average borrowings and an increase in interest rates compared to the prior year.
 
Income tax expense (benefit).  We recognized an income tax benefit of $0.9 million for fiscal year 2006 compared to income tax expense of $3.9 million for fiscal year 2005. Our effective tax rate in fiscal year 2006 was 37.1% reflecting an estimated combined net statutory federal and state income tax rate of 38% reduced by nondeductible permanent differences. Our effective tax rate in fiscal year 2005 was 37.6% reflecting an estimated combined net statutory federal and state income tax rate of 38% reduced by the favorable tax treatment of charitable contributions of inventory during the year. No valuation allowance has been provided for our net tax assets because we generated taxable income in prior carryback periods and we anticipate that future taxable income will be sufficient to allow us to fully realize these tax assets.
 
Net income (loss).  We had a net loss of $1.5 million in fiscal year 2006 compared to net income of $6.6 million in fiscal year 2005.
 
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