SANTA BARBARA, CA -- (Marketwire) -- 08/12/08 -- The Walking Company Holdings, Inc. (NASDAQ: WALK) (www.thewalkingcompany.com) (www.bigdogs.com), a developer and retailer of branded, lifestyle consumer products, today reported the financial results for the second quarter ended June 30, 2008.

For the quarter ended June 30, 2008, consolidated net sales were $56,020,000, as compared with $55,854,000 in the second quarter 2007. Our consolidated sales increased 0.3%. The Company had a total of 295 stores opened (201 TWC stores and 94 Big Dogs stores) at the end of the period, as compared with 302 stores opened on June 30, 2007 (160 TWC stores and 142 Big Dogs stores). Comparative retail store sales decreased 1.2% for the second quarter 2008 (3.2% decline for the TWC chain and 4.0% increase for the Big Dogs chain.) Total consolidated gross profit was 51.0% of sales or $28,578,000 in the second quarter 2008, as compared with 54.6% of net sales or $30,498,000 in the second quarter 2007. TWC's margin contribution decreased to 51.7% as compared to last year's margin contribution of 52.4%. TWC product margin remained constant to last year however the overall margin decreased as a result of liquidating certain inventory items. Big Dogs' margin contribution for the period decreased to 49.1% as compared to last year's margin contribution of 59.5%. Big Dogs' margin decline is the result of increased promotional activity resulting in higher sales.

Consolidated operating expenses in the second quarter 2008 were $30,856,000 or 55.1% of sales, compared to $29,670,000 or 53.1% in the second quarter 2007. Consolidated operating loss for the second quarter 2008 was $2,278,000, compared to operating income of $828,000 for the second quarter 2007. The decrease in operating income is largely attributable to the closures of Big Dogs stores, a $2,900,000 reduction in TWC sales ($1,000,000 million attributable to a decline in TWC comparative store sales revenue, and $1,900,000 from our store retrofitting program), and operating lag resulting from our newly opened TWC store openings. As a result, the consolidated fully diluted net loss per share for the second quarter 2008 increased to $0.23 net loss per share, as compared with $0.02 net loss per share for the second quarter 2007.

The Walking Company Holdings, Inc. (the "Company") consists of its The Walking Company and Big Dogs subsidiaries. The Walking Company ("TWC") is a leading independent specialty retailer of high-quality, technically designed comfort footwear and accessories that features premium brands such as ECCO, Mephisto, Dansko, Uggs, and MBT, 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 201 stores in premium malls across the nation. Big Dogs develops, markets and retails a branded, lifestyle collection of unique, high-quality, popular-priced consumer products, including active wear, casual sportswear, accessories and gifts. The BIG DOGS® brand image is one of quality, value and fun. The BIG DOGS® 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.