Big Dog Holdings, Inc. Announces Second Quarter 2005 Financial Results
Santa Barbara, California - July 29, 2005 Big Dog Holdings, Inc. (NASDAQ: BDOG; www.bigdogs.com; www.thewalkingcompany.com), a developer and retailer of branded,
lifestyle consumer products, today reported the financial results for the second quarter ended June 30, 2005.
For the quarter ended June 30, 2005, consolidated net sales were $43,441,000 as compared with $41,044,000 in the second quarter 2004. Our consolidated retail sales increased
6%, primarily due to comparative store sales increase of 7%. Comparative store sales declined 2.5% for the Big Dogs chain and increased 18.3% for the TWC chain. Consolidated
gross profit increased to $24,680,000 in the second quarter 2005 as compared with $23,031,000 in the second quarter 2004. The overall increase in consolidated gross profit is the
result of increased sales as well as an increase in margin contribution from Big Dog and TWC. Big Dogs' margin contribution for the period increased to 61.7% as compared to last
year's margin contribution of 60.5% and the gross margin for the TWC chain increased to 51.8% as compared to 50.5% for 2004.
Consolidated operating expenses in the second quarter 2005 were $21,613,000 or 49.8% of sales compared to $20,813,000 or 50.7% in the second quarter 2004. The decrease in
such expenses as a percentage of sales is attributable to leveraging these expenses over a larger revenue base. The consolidated fully diluted net income per share for the
second quarter 2005 increased to $.18 per share, as compared with a consolidated fully diluted net income per share of $.14 for the second quarter 2004.
Andrew Feshbach, Chief Executive Officer, stated, "We are very pleased with the results of our 2nd quarter and improvements over last year and continue to see this trend going
into our 3rd quarter for both chains."
Other Business:
As previously announced, the Company signed a definitive agreement to purchase the assets of Footworks, a division of the privately held shoe retailer, Bianca of Nevada, Inc.
for approximately $10 million. Footworks operates a chain of 8 retail stores selling comfort shoes and accessories. This transaction is working toward completion and is expected
to close in August.
Big Dog Holdings, Inc. consists of Big Dogs and The Walking Company. Big Dogs develops, markets and retails a branded, lifestyle collection of unique, high-quality, popular-priced
consumer products, including activewear, casual sportswear, accessories and gifts. The BIG DOGSŪ brand image is one of quality, value and fun. The BIG DOGSŪ brand is designed
to appeal to people of all ages and demographics, particularly baby boomers and their kids, big and tall customers, and pet owners. In addition to its 181 retail stores, Big Dogs
markets its products through its catalog, licensing and corporate sales accounts and Internet sales. The Walking Company is a leading independent specialty retailer of high-quality,
technically designed comfort footwear and accessories that features premium brands such as ECCO, Mephisto, Dansko, Birkenstock and Merrell among many others. These products
have particular appeal to one of the largest and most rapidly growing demographics in the nation. The Walking Company operates 77 stores in premium malls across the nation.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995- With the exception of historical information, the matters discussed in this press release are forward
looking statements that involve a number of risks and uncertainties. The actual future sales and other results of the Company could differ significantly from those statements. Further
information on the Company's risk factors is contained in the Company's quarterly and annual reports as filed with the Securities and Exchange Commission.
View Financials
For Further Information:
Big Dog Holdings, Inc.
121 Gray Avenue
Santa Barbara, California 93101
www.bigdogs.com
www.thewalkingcompany.com
Contact:
Laura Russell
Investor Information
(805) 963-8727, ext. 1360
laurar@bigdogs.com
For Immediate Release:
July 29, 2005
