|
|
 | | | |
- close
- close
- close
- close
| |||||||||
These excerpts taken from the BKRS 10-K filed Apr 24, 2009. Fiscal
Year Ended February 2, 2008 Compared to Fiscal Year Ended
February 3, 2007
Net sales. Net sales were $186.3 million
in fiscal year 2007, down from $204.8 million for fiscal
year 2006, a decrease of $18.5 million or 9.0%. Comparable
store sales in fiscal year 2007 decreased 12.3% compared to a
7.1% decrease in fiscal year 2006. Continued weakness in demand
for our sandal line during the spring season and lower than
expected demand for our fall offerings were the primary causes
for the comparable store sales decrease. Average unit selling
prices decreased 3.1% reflecting lower price points resulting
from greater promotional discounting compared to fiscal year
2006. Unit sales volume decreased 6.5%. Our Internet and catalog
sales increased 15.7% to $9.6 million in fiscal year 2007.
Gross profit. Gross profit decreased to
$47.5 million in fiscal year 2007 from $62.2 million
in fiscal year 2006, a decrease of $14.7 million or 23.7%.
As a percentage of sales, gross profit decreased to 25.5% in
fiscal year 2007 from 30.4% in fiscal year 2006. Demand for our
spring and fall product lines was much weaker than anticipated,
resulting in higher than optimal inventory levels in the third
quarter. In September 2007, we aggressively reviewed our
existing inventory and took pricing actions that we believe were
required to provide the freshness in product that our customers
desire and facilitate the reduction of our inventory levels.
This significantly reduced gross margin achieved in fiscal year
2007 but resulted in a 25.1% decrease in inventory the end of
fiscal year 2007 compared to the end of fiscal year 2006.
Principal components of the change in gross margin in fiscal
year 2007 are $1.0 million of incremental gross profit from
new stores, offset by a $5.2 million decrease in gross
profit from lower comparable store sales and a
$10.6 million decrease in gross profit from reduced margins
resulting from increased promotional activity. Permanent
markdown costs were $15.8 million in fiscal year 2007
compared to $17.4 million in fiscal year 2006, reflecting
the decrease in net sales.
Selling expense. Selling expense increased to
$46.5 million in fiscal year 2007 from $45.2 million
in fiscal year 2006, an increase of $1.3 million or 2.9%.
The increase was primarily the result of a $1.2 million
increase in catalog production and mailing costs as we increased
the number and size of catalog mailings and a $1.0 million
increase in store depreciation expense, offset by decreases of
$0.4 million in store payroll expenses and
$0.3 million in store supplies.
General and administrative expense. General
and administrative expense decreased to $17.9 million in
fiscal year 2007 from $18.2 million in fiscal year 2006, a
decrease of $0.3 million or 2.0%. As a percentage of sales,
general and administrative expense increased to 9.6% from 8.9%
in fiscal year 2006 as a result of lower leverage.
Gain/loss on disposal of property and
equipment. Gain on disposal of property and
equipment was $4.7 million in fiscal year 2007 compared to
a loss $0.3 million in fiscal year 2006. The gain in fiscal
year 2007 relates primarily to the gain from the termination of
a long-term below-market operating lease in December 2007
and the loss in fiscal year 2006 relates to expensing leasehold
improvements and store fixtures due to store closings and
remodelings.
Impairment of long-lived assets. During fiscal
year 2007 we recognized $3.1 million in noncash charges
related to the impairment of long-lived assets of
underperforming stores, including three prototype stores that we
determined to no longer be consistent with our strategic focus.
The prototype locations will be converted into Wild Pair stores
in 2008. Impairment expense in fiscal year 2006 was
$0.1 million.
Interest expense. Interest expense increased
to $1.7 million in fiscal year 2007 from $1.0 million
in fiscal year 2006, an increase of $0.7 million. The
increase in interest expense reflects the increase in our
average borrowings on our revolving credit facility and interest
on our subordinated convertible debentures issued in
June 2007.
Table of Contents
Income tax expense (benefit). We established a
$7.2 million tax valuation allowance against our net
deferred tax assets in fiscal year 2007. Consequently, we
recognized $0.7 million of income tax expense in fiscal
year 2007 compared to a $0.9 million income tax benefit
recognized in fiscal year 2006.
Net loss. We had a net loss of
$17.7 million in fiscal year 2007 compared to net loss of
$1.5 million in fiscal year 2006.
Fiscal Year Ended February 2, 2008 Compared to Fiscal Year Ended February 3, 2007 Net sales. Net sales were $186.3 million in fiscal year 2007, down from $204.8 million for fiscal year 2006, a decrease of $18.5 million or 9.0%. Comparable store sales in fiscal year 2007 decreased 12.3% compared to a 7.1% decrease in fiscal year 2006. Continued weakness in demand for our sandal line during the spring season and lower than expected demand for our fall offerings were the primary causes for the comparable store sales decrease. Average unit selling prices decreased 3.1% reflecting lower price points resulting from greater promotional discounting compared to fiscal year 2006. Unit sales volume decreased 6.5%. Our Internet and catalog sales increased 15.7% to $9.6 million in fiscal year 2007. Gross profit. Gross profit decreased to $47.5 million in fiscal year 2007 from $62.2 million in fiscal year 2006, a decrease of $14.7 million or 23.7%. As a percentage of sales, gross profit decreased to 25.5% in fiscal year 2007 from 30.4% in fiscal year 2006. Demand for our spring and fall product lines was much weaker than anticipated, resulting in higher than optimal inventory levels in the third quarter. In September 2007, we aggressively reviewed our existing inventory and took pricing actions that we believe were required to provide the freshness in product that our customers desire and facilitate the reduction of our inventory levels. This significantly reduced gross margin achieved in fiscal year 2007 but resulted in a 25.1% decrease in inventory the end of fiscal year 2007 compared to the end of fiscal year 2006. Principal components of the change in gross margin in fiscal year 2007 are $1.0 million of incremental gross profit from new stores, offset by a $5.2 million decrease in gross profit from lower comparable store sales and a $10.6 million decrease in gross profit from reduced margins resulting from increased promotional activity. Permanent markdown costs were $15.8 million in fiscal year 2007 compared to $17.4 million in fiscal year 2006, reflecting the decrease in net sales. Selling expense. Selling expense increased to $46.5 million in fiscal year 2007 from $45.2 million in fiscal year 2006, an increase of $1.3 million or 2.9%. The increase was primarily the result of a $1.2 million increase in catalog production and mailing costs as we increased the number and size of catalog mailings and a $1.0 million increase in store depreciation expense, offset by decreases of $0.4 million in store payroll expenses and $0.3 million in store supplies. General and administrative expense. General and administrative expense decreased to $17.9 million in fiscal year 2007 from $18.2 million in fiscal year 2006, a decrease of $0.3 million or 2.0%. As a percentage of sales, general and administrative expense increased to 9.6% from 8.9% in fiscal year 2006 as a result of lower leverage. Gain/loss on disposal of property and equipment. Gain on disposal of property and equipment was $4.7 million in fiscal year 2007 compared to a loss $0.3 million in fiscal year 2006. The gain in fiscal year 2007 relates primarily to the gain from the termination of a long-term below-market operating lease in December 2007 and the loss in fiscal year 2006 relates to expensing leasehold improvements and store fixtures due to store closings and remodelings. Impairment of long-lived assets. During fiscal year 2007 we recognized $3.1 million in noncash charges related to the impairment of long-lived assets of underperforming stores, including three prototype stores that we determined to no longer be consistent with our strategic focus. The prototype locations will be converted into Wild Pair stores in 2008. Impairment expense in fiscal year 2006 was $0.1 million. Interest expense. Interest expense increased to $1.7 million in fiscal year 2007 from $1.0 million in fiscal year 2006, an increase of $0.7 million. The increase in interest expense reflects the increase in our average borrowings on our revolving credit facility and interest on our subordinated convertible debentures issued in June 2007.
Table of ContentsIncome tax expense (benefit). We established a $7.2 million tax valuation allowance against our net deferred tax assets in fiscal year 2007. Consequently, we recognized $0.7 million of income tax expense in fiscal year 2007 compared to a $0.9 million income tax benefit recognized in fiscal year 2006. Net loss. We had a net loss of $17.7 million in fiscal year 2007 compared to net loss of $1.5 million in fiscal year 2006. These excerpts taken from the BKRS 10-K filed May 2, 2008. Fiscal
Year Ended February 2, 2008 Compared to Fiscal Year Ended
February 3, 2007
Net sales. Net sales were $186.3 million
in fiscal year 2007, down from $204.8 million for fiscal
year 2006, a decrease of $18.5 million or 9.0%. Comparable
store sales in fiscal year 2007 decreased 12.3% compared to a
7.1% decrease in fiscal year 2006. Continued weakness in demand
for our sandal line during the spring season and lower than
expected demand for our fall offerings were the primary causes
for the comparable store sales decrease. Average unit selling
prices decreased 3.1% reflecting lower price points resulting
from greater promotional discounting compared to fiscal year
2006. Unit sales volume decreased 6.5%. Our Internet and catalog
sales increased 15.7% to $9.6 million in fiscal year 2007.
Gross profit. Gross profit decreased to
$47.5 million in fiscal year 2007 from $62.2 million
in fiscal year 2006, a decrease of $14.7 million or 23.7%.
As a percentage of sales, gross profit decreased to 25.5% in
fiscal year 2007 from 30.4% in fiscal year 2006. Demand for our
spring and fall product lines was much weaker than anticipated,
resulting in higher than optimal inventory levels in the third
quarter. In September 2007, we aggressively reviewed our
existing inventory and took pricing actions that we believe were
required to provide the freshness in product that our customers
desire and facilitate the reduction of our inventory levels.
This significantly reduced gross margin achieved in fiscal year
2007 but resulted in a 25.1% decrease in inventory the end of
fiscal year 2007 compared to the end of fiscal year 2006.
Principal components of the change in gross margin in fiscal
year 2007 are $1.0 million of incremental gross profit from
new stores, offset by a $5.2 million decrease in gross
profit from lower comparable store sales and a
$10.6 million decrease in gross profit from reduced margins
Table of Contents
resulting from increased promotional activity. Permanent
markdown costs were $15.8 million in fiscal year 2007
compared to $17.4 million in fiscal year 2006, reflecting
the decrease in net sales.
Selling expense. Selling expense increased to
$46.5 million in fiscal year 2007 from $45.2 million
in fiscal year 2006, an increase of $1.3 million or 2.9%.
The increase was primarily the result of a $1.2 million
increase in catalog production and mailing costs as we increased
the number and size of catalog mailings and a $1.0 million
increase in store depreciation expense, offset by decreases of
$0.4 million in store payroll expenses and
$0.3 million in store supplies.
General and administrative expense. General
and administrative expense decreased to $17.9 million in
fiscal year 2007 from $18.2 million in fiscal year 2006, a
decrease of $0.3 million or 2.0%. As a percentage of sales,
general and administrative expense increased to 9.6% from 8.9%
in fiscal year 2006 as a result of lower leverage.
Gain/loss on disposal of property and
equipment. Gain on disposal of property and
equipment was $4.7 million in fiscal year 2007 compared to
a loss $0.3 million in fiscal year 2006. The gain in fiscal
year 2007 relates primarily to the gain from the termination of
a long-term below-market operating lease in December 2007 and
the loss in fiscal year 2006 relates to expensing leasehold
improvements and store fixtures due to store closings and
remodelings.
Impairment of long-lived assets. During fiscal
year 2007 we recognized $3.1 million in noncash charges
related to the impairment of long-lived assets of
underperforming stores, including three prototype stores that we
determined to no longer be consistent with our strategic focus.
The prototype locations will be converted into Wild Pair stores
in 2008. Impairment expense in fiscal year 2006 was
$0.1 million.
Interest expense. Interest expense increased
to $1.7 million in fiscal year 2007 from $1.0 million
in fiscal year 2006, an increase of $0.7 million. The
increase in interest expense reflects the increase in our
average borrowings on our revolving credit facility and interest
on our subordinated convertible debentures issued in June 2007.
Income tax expense (benefit). We established a
$7.2 million tax valuation allowance against our net
deferred tax assets in fiscal year 2007. Consequently, we
recognized $0.7 million of income tax expense in fiscal
year 2007 compared to a $0.9 million income tax benefit
recognized in fiscal year 2006.
Net income (loss). We had a net loss of
$17.7 million in fiscal year 2007 compared to net loss of
$1.5 million in fiscal year 2006.
Fiscal Year Ended February 2, 2008 Compared to Fiscal Year Ended February 3, 2007 Net sales. Net sales were $186.3 million in fiscal year 2007, down from $204.8 million for fiscal year 2006, a decrease of $18.5 million or 9.0%. Comparable store sales in fiscal year 2007 decreased 12.3% compared to a 7.1% decrease in fiscal year 2006. Continued weakness in demand for our sandal line during the spring season and lower than expected demand for our fall offerings were the primary causes for the comparable store sales decrease. Average unit selling prices decreased 3.1% reflecting lower price points resulting from greater promotional discounting compared to fiscal year 2006. Unit sales volume decreased 6.5%. Our Internet and catalog sales increased 15.7% to $9.6 million in fiscal year 2007. Gross profit. Gross profit decreased to $47.5 million in fiscal year 2007 from $62.2 million in fiscal year 2006, a decrease of $14.7 million or 23.7%. As a percentage of sales, gross profit decreased to 25.5% in fiscal year 2007 from 30.4% in fiscal year 2006. Demand for our spring and fall product lines was much weaker than anticipated, resulting in higher than optimal inventory levels in the third quarter. In September 2007, we aggressively reviewed our existing inventory and took pricing actions that we believe were required to provide the freshness in product that our customers desire and facilitate the reduction of our inventory levels. This significantly reduced gross margin achieved in fiscal year 2007 but resulted in a 25.1% decrease in inventory the end of fiscal year 2007 compared to the end of fiscal year 2006. Principal components of the change in gross margin in fiscal year 2007 are $1.0 million of incremental gross profit from new stores, offset by a $5.2 million decrease in gross profit from lower comparable store sales and a $10.6 million decrease in gross profit from reduced margins
Table of Contentsresulting from increased promotional activity. Permanent markdown costs were $15.8 million in fiscal year 2007 compared to $17.4 million in fiscal year 2006, reflecting the decrease in net sales. Selling expense. Selling expense increased to $46.5 million in fiscal year 2007 from $45.2 million in fiscal year 2006, an increase of $1.3 million or 2.9%. The increase was primarily the result of a $1.2 million increase in catalog production and mailing costs as we increased the number and size of catalog mailings and a $1.0 million increase in store depreciation expense, offset by decreases of $0.4 million in store payroll expenses and $0.3 million in store supplies. General and administrative expense. General and administrative expense decreased to $17.9 million in fiscal year 2007 from $18.2 million in fiscal year 2006, a decrease of $0.3 million or 2.0%. As a percentage of sales, general and administrative expense increased to 9.6% from 8.9% in fiscal year 2006 as a result of lower leverage. Gain/loss on disposal of property and equipment. Gain on disposal of property and equipment was $4.7 million in fiscal year 2007 compared to a loss $0.3 million in fiscal year 2006. The gain in fiscal year 2007 relates primarily to the gain from the termination of a long-term below-market operating lease in December 2007 and the loss in fiscal year 2006 relates to expensing leasehold improvements and store fixtures due to store closings and remodelings. Impairment of long-lived assets. During fiscal year 2007 we recognized $3.1 million in noncash charges related to the impairment of long-lived assets of underperforming stores, including three prototype stores that we determined to no longer be consistent with our strategic focus. The prototype locations will be converted into Wild Pair stores in 2008. Impairment expense in fiscal year 2006 was $0.1 million. Interest expense. Interest expense increased to $1.7 million in fiscal year 2007 from $1.0 million in fiscal year 2006, an increase of $0.7 million. The increase in interest expense reflects the increase in our average borrowings on our revolving credit facility and interest on our subordinated convertible debentures issued in June 2007. Income tax expense (benefit). We established a $7.2 million tax valuation allowance against our net deferred tax assets in fiscal year 2007. Consequently, we recognized $0.7 million of income tax expense in fiscal year 2007 compared to a $0.9 million income tax benefit recognized in fiscal year 2006. Net income (loss). We had a net loss of $17.7 million in fiscal year 2007 compared to net loss of $1.5 million in fiscal year 2006. | EXCERPTS ON THIS PAGE:
RELATED TOPICS for BKRS: |
| |||||||
