Bakers Footwear Reports First Quarter Results

Bakers Footwear Group, Inc. (Nasdaq: BKRS), a leading
specialty retailer of moderately priced fashion footwear for young
women, today announced results for the thirteen weeks ended April 29,
2006.

   For the first quarter, the thirteen weeks ended April 29, 2006:

   --  Net sales increased 10.8%, to $49.8 million from $44.9 million
        for the thirteen weeks ended April 30, 2005. Comparable store
        sales decreased 0.8% compared to a 7.8% increase in the first
        quarter last year;

   --  Operating income was $ 1.2 million, or 2.4% of net sales, as
        compared to $3.1 million, or 6.9% of net sales in the same
        period a year ago;

   --  Net income was $0.7 million, or 1.3% of net sales, versus $1.9
        million, or 4.1% of net sales in the first quarter of 2005;

   --  Diluted earnings per share were $0.10, compared to diluted
        earnings per share of $0.33 in the first quarter of 2005; and

   --  As a result of adopting FAS 123R, we recognized $0.02 per
        share related to stock based compensation expense in the first
        quarter of 2006. We recognized no stock-based compensation
        expense in the first quarter of 2005.

   Peter Edison, Chairman and Chief Executive Officer of Bakers
Footwear Group said, "We are disappointed with our first quarter
performance, which reflected softness in the sandal category of our
business and resulted in lower margins, as we incurred higher
markdowns versus the first quarter last year. Our comparable first
quarter sales trend continues into the second quarter."

   Additionally, during the first quarter, the Company:

   --  Opened 12 new stores in our new Bakers format and at
        quarter-end operated a total of 245 Bakers and Wild Pair
        stores in 38 states; and

   --  Remodeled 5 stores and at quarter-end operated 135 stores, or
        62% of its Bakers stores, in the new store format.

   "We continue to be pleased with our store expansion program," Mr.
Edison, stated. "We currently expect to open 30 to 35 new stores while
remodeling approximately 20 locations this year."
   Gross profit in the first quarter of 2006 was $16.3 million, or
32.7% of net sales, compared to $15.4 million, or 34.3% of net sales,
in the first quarter of 2005. Gross profit rose due to the increase in
new stores versus the first quarter last year; this was offset by
higher markdowns and a modest decline in comparable store sales for
the quarter. Operating expenses were $15.1 million, or 30.3% of net
sales compared to $12.3 million, or 27.4% of net sales in the first
quarter of 2005. The Company incurred higher costs related to
depreciation and payroll associated with its store expansion. In
addition, the Company incurred $214,000 in pre-tax stock based
compensation expense in the first quarter this year related to the
adoption on January 29, 2006 of FAS 123R Share-Based Payment.
   Michele Bergerac, President of Bakers Footwear, said, "We are not
satisfied with our first quarter performance, which followed several
quarters of strong performance. We are excited by our fall assortment
and expect to benefit as we capitalize on several emerging fashion
trends."
   Mr. Edison continued: "We believe our marketing and merchandising
initiatives, combined with our new store format plan will pave the way
for long term sales and earnings growth. We also continue to see
significant long-term opportunities for new store expansion."

   Conference Call

   The Company announced that it will conduct a conference call to
discuss its first quarter of fiscal 2006 results today, Friday, June
2, 2006 at 9:00 a.m. Eastern Time. Investors and analysts interested
in participating in the call are invited to dial [phone],
approximately five minutes prior to the start of the call. The
conference call will also be web-cast live at
http://viavid.net/dce.aspx?sid=000031F5. A replay of this call will be
available until June 9, 2006 and can be accessed by dialing (888)
203-1112 and entering code 8160478. The web-cast will be available
until July 2, 2006 at the same web address.

   About Bakers Footwear Group, Inc.

   Bakers Footwear Group is a national, mall-based, specialty
retailer of distinctive footwear and accessories for young women. The
Company's merchandise includes private label and national brand dress,
casual and sport shoes, boots, sandals and accessories. The Company
currently operates more than 225 stores nationwide under two formats,
Bakers and Wild Pair. Bakers stores focus on women between the ages of
16 and 35. Wild Pair stores offer fashion-forward footwear to both
women and men between the ages of 17 and 29.

   THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS (WITHIN THE
MEANING OF SECTION 27(A) OF THE SECURITIES ACT OF 1933 AND SECTION
21(E) OF THE SECURITIES EXCHANGE ACT OF 1934). BAKERS FOOTWEAR HAS NO
DUTY TO UPDATE SUCH STATEMENTS. ACTUAL FUTURE EVENTS AND CIRCUMSTANCES
COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN THIS STATEMENT DUE TO
VARIOUS FACTORS. FACTORS THAT COULD CAUSE THESE CONDITIONS NOT TO BE
SATISFIED INCLUDE MATERIAL CHANGES IN CAPITAL MARKET CONDITIONS OR IN
BAKERS FOOTWEAR'S BUSINESS, PROSPECTS, RESULTS OF OPERATIONS OR
FINANCIAL CONDITION AND OTHER RISKS AND UNCERTAINTIES, INCLUDING THOSE
DETAILED IN BAKERS FOOTWEAR'S FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION.

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Bakers Footwear Group, Inc.                     Thirteen    Thirteen
(in thousands, except per share data)          Weeks Ended Weeks Ended
                                                April 29,   April 30,
Income Statement Data                             2006        2005
----------------------------------------------------------------------
                                                Unaudited   Unaudited

Net Sales                                      $   49,805  $   44,943
Cost of merchandise sold, occupancy,
 and buying expenses                               33,508      29,537
                                               -----------------------
Gross profit                                       16,297      15,406

Selling expenses                                   10,398       8,627
General and administrative expenses                 4,699       3,557
Loss on disposal of property and equipment             15         140
                                               -----------------------
Operating income                                    1,185       3,082

Interest expense                                     (113)       (126)
Other, net                                             23          36
                                               -----------------------
Income before income taxes                          1,095       2,992

Income tax expense                                    427       1,141
                                               -----------------------

Net income                                     $      668  $    1,851
                                               =======================

Basic earnings per share                       $     0.11  $     0.35
                                               =======================
Diluted earnings per share                     $     0.10  $     0.33
                                               =======================

Weighted average shares outstanding
 Basic                                              6,332       5,344
 Diluted                                            6,811       5,599

Cash Flow Data
----------------------------------------------------------------------
 Cash provided by (used in) operating
  activities                                       (7,179)        382
 Cash used in investing activities                 (4,836)     (4,278)
 Cash provided by financing activities              8,286       7,372

Supplemental Data
----------------------------------------------------------------------
 Comparable store sales increase (decrease)         (0.8%)        7.8%
 Gross profit percentage                             32.7%       34.3%
 Number of stores at end of period                    245         221

                                                April 29,   April 30,
Balance Sheet Data                                 2006        2005
----------------------------------------------------------------------
                                                Unaudited   Unaudited
Cash                                           $      196  $    4,909
Accounts receivable                                 2,583       2,012
Inventories                                        28,199      20,416
Other current assets                                2,665       3,073
                                               -----------------------
Current assets                                     33,643      30,410

Property and equipment, net                        41,827      24,772
Other assets                                          846         499
                                               -----------------------
                                               $   76,316  $   55,681
                                               =======================

Current liabilities                            $   26,193  $   15,497
Noncurrent liabilities                              7,276       5,565
Shareholders' equity                               42,847      34,619
                                               -----------------------
                                               $   76,316  $   55,681
                                               =======================

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