Wilsons Leather Sales Woes Continue

by MR Magazine Staff Aug 22, 2007

MINNEAPOLIS – Wilsons The Leather Experts Inc. is reporting some disappointing numbers in the second quarter. The leather apparel and accessories chain reports a net loss of $29.4 million ($1.17 per share) compared to a net loss of $24.5 million (63 cents per share) last year.

Net sales dropped 11.3 percent to $43.6 million, versus $49.2 million in the second quarter last year. Same store sales fell 11.9 percent, compared to the 16.2 percent drop in the second quarter last year.

MRketplace.comreported earlier this month that Wilsons was seeking strategic assistance after a troubling sales drop of nearly 20 percent over the last year.

The company has enlisted the help of three firms for strategic guidance: Financo, Inc., an investment bank; Telsey Advisory Group, a consumer research firm; and IDEO, a design and innovation firm. Wilsons Leather said in a statement that it intends to continue to grow its accessories business – possibly acquiring an existing accessories brand and opening accessories-only stores.