Lower sales and profit at Bakers Footwear in Q3
American women’s footwear and accessories retailer Bakers Footwear has reported a decline in sales and profit for the third quarter ended
Net sales slipped from $34.3 million to $31.6 million compared with the same period in 2003, whilst gross profit dropped from $9.3 million to $7.1 million for the quarter.
Looking at the first nine months of the year, the news is more positive with net sales increasing slightly on a year-on-year basis to reach $104.8 million compared with $104.5 million for the same period last year. Gross profit is also higher for the first 39 weeks, with the company reporting $29.9 million in 2004 compared with $28.3 million in 2003.
The poor results for the third quarter are attributed to a lack of demand in back-to-school products and a general downturn in the industry at present. “Our disappointing results in the third quarter reflect soft demand in traditional back-to-school merchandise and general weakness in the footwear industry. Consumer preference for low-priced casual footwear and athletic shoes held steady throughout the summer season and carried through the month of September, resulting in a 6% decrease in company sales,” said chairman and CEO of the company, Peter Edison.
On a more positive note, despite the poor results for the third quarter, Bakers Footwear opened eight new stores during the period and refurbished a further eight existing outlets. The new stores are the first of seventeen that the company plans to open by the end of the fiscal year, and a further 25-30 in 2005.
