Four units were remodeled this spring, "and that's all we're announcing," Edison said. He added that remodeled units this spring outperformed others by 15%.

Asked by an analyst during the call what else was needed, Edison responded, "Yea, we had the shoes that were fashion right, but this year's fashion run wasn't compelling to the public."

The brightest spot in the quarter was internet sales, which rose 38.6% this opening quarter compared with the same quarter a year ago. In addition, the company ramped up its catalog efforts. It mailed two catalogs in first quarter, versus one in the same quarter a year ago, and its catalog circulation has nearly doubled to 846,000 customers.

Edison said the company is focused on "bringing back flair" along with a more aggressive approach to pricing. It will continue this strategy, Edison said, "despite rocky results."

First-quarter sales fell just 1% to $49.3 million, compared with the year-ago quarter. Operating cash flow was negative. Management says it anticipates a net loss of between $1.6 million and $3.3 million for fiscal 2007. This compares with a net loss of $1.5 million in fiscal 2006.

At the same time it released first-quarter results, Bakers also announced the private placement of $4 million in convertible debentures due June 30, 2102 for net proceeds of about $3.5 million. The debentures are also convertible to 444,444 shares of common stock if the share price reaches $9. This represents about 7% of total outstanding shares.

BKRS stock on the Nasdaq plummeted nearly 13.3% to $7.20 a share on the day of the conference call. This compares with a 52-week trading range of between $15.75 a share and $6.81 a share.

The mall-based retailer focuses on women between the ages of 16 and 35 under the Bakers brand and on men and women between the ages of 17 and 29 under its Wild Wear brand. It sells private label and national brand dress, casual and sports whose, sandals and accessories.