Leather clothing retailer Wilsons net sales fall in Q2
22 Aug '07
4 min read
Wilsons The Leather Experts Inc announced results for the quarter ended August 4, 2007. Net sales decreased 11.3% to $43.6 million compared to $49.2 million for the same period last year. Comparable store sales for the second quarter ended August 4, 2007 decreased 11.9% compared to a decrease of 16.2% in the same period last year.
Wilsons Leather reported a net loss for the 2007 second quarter of $29.4 million, or $1.17 per basic and diluted share. Our basic and diluted loss per share calculation includes $15.8 million of adjustments that increased our net loss available to common shareholders by $0.40 per basic and diluted share as a result of our June 2007 equity financing.
These adjustments include a non-recurring $14.9 million beneficial conversion feature in the Series A preferred stock and a $1.0 million deemed dividend to holders of warrants to purchase our common stock that we issued in 2004 as the result of an anti-dilution adjustment to such warrants.
The beneficial conversion feature represents the preferred stock's favorable conversion price to common stock, after allocating the offering proceeds between the Series A preferred stock and common stock warrants issued in the June 2007 equity financing, as compared to the closing price of our common stock on the closing date of the transaction.
We also accrued a $914,000 Series A preferred stock paid-in-kind dividend payable. The basic and diluted loss per share for the second quarter of 2007, excluding the equity financing adjustments, was $0.75 and compares to a net loss for the 2006 second quarter of $24.5 million, or $0.63 per basic and diluted share.
marketing@alchempro.com
