The Internet was a solid – if small -- performer for Wilsons The Leather Experts in 2007 as a continuing decline in total sales also forced a move away from the company’s mall-based store strategy. Web sales were $7 million for fiscal 2007, up 6.5%, or $430,000, compared with $6.6 million the prior year.
Overall sales at the leather goods retailer fell by 12.7%, or $40.9 million, for the year ended Feb. 2, 2008, to $280.4 million compared with $321.3 million in the prior year. Comparable store sales continued to decline in fiscal 2007 to 10.4% compared with a previous drop of 17.2% in FY 2006.
Wilsons, No. 484 in the Internet Retailer Top 500 Guide, had a net loss of $77.5 million for fiscal 2007. That compares with a net loss of $33.1 million in fiscal 2006. The continuing sales fall-off has Wilsons’ management rethinking its sales strategy.
“2007 was obviously a disappointing year for Wilsons Leather,” says Michael Searles, CEO. “We missed the mark on improving top and bottom line and as a result have taken a step back from a working capital perspective. We do not believe that a mall-based specialty leather outerwear concept is relevant any longer in today’s marketplace. This is why we have tested and are now embarking on a course of action that includes closing 160 mall stores and changing our 100 remaining mall stores to our new branded accessories “Studio” concept.”
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