8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)            November 14, 2006                     

Wilsons The Leather Experts Inc.

(Exact name of registrant as specified in its charter)

Minnesota	0-21543	41-1839933
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
7401 Boone Ave. N.
Brooklyn Park, Minnesota		55428
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code                                  (763) 391-4000                                 

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02. Results of Operations and Financial Condition.
	Item 9.01. Financial Statements and Exhibits.
SIGNATURES
Index to Exhibits
Press Release

Item 2.02. Results of Operations and Financial Condition.

     On November 14, 2006, Wilsons The Leather Experts Inc. (the “Company”) issued the Press Release that is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 The Press Release of the Company dated November 14, 2006, containing its financial results for the third quarter ended October 28, 2006.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	WILSONS THE LEATHER EXPERTS INC.
Date: November 14, 2006	By /s/ Stacy A. Kruse
	Stacy A. Kruse
	Chief Financial Officer and Treasurer

Index to Exhibits

Exhibit
No.	Description	Method of Filing
99.1	The Press Release of the Company dated November 14, 2006, containing its financial results for the third quarter ended October 28, 2006.	Electronic Transmission

EX-99.1

Contacts:
Stacy A. Kruse
Chief Financial Officer and Treasurer
Wilsons The Leather Experts Inc.
(763) 391-4000
 
For Immediate Release

Wilsons The Leather Experts Inc. Announces
Third Quarter 2006 Operating Results

     MINNEAPOLIS — (BUSINESS WIRE) — November 14, 2006 — Wilsons The Leather Experts Inc. (NASDAQ: WLSN) today announced results for the third quarter ended October 28, 2006. Net sales decreased 15.6% to $64.5 million compared to $76.4 million for the same period last year.

     Comparable store sales for the third quarter decreased 15.5% compared to a decrease of 11.3% in the same period last year.

     Wilsons Leather reported a net loss for the 2006 third quarter of $14.1 million, or $0.36 per basic and diluted share. This compares to a net loss for the 2005 third quarter of $11.7 million, or $0.30 per basic and diluted share.

     Year-to-date sales decreased 14.1% to $188.3 million compared to $219.1 million for the same period last year. Comparable store sales for the nine-month period decreased 13.9% compared to an increase of 3.1% for the same period last year.

     The net loss through the end of the third quarter of 2006 was $45.1 million, or $1.15 per basic and diluted share. This compares to a net loss of $29.5 million, or $0.76 per basic and diluted share, through the end of the third quarter of 2005.

     Michael Searles, Chairman and Chief Executive Officer, commented, “Our financial performance during the third quarter is reflective of a company that is in the midst of transitioning its customer base. We believe that the promotional customer that has always been drawn to our stores is opting out and the higher demographic, fashion focused customer that we are trying to attract is taking longer than we’d like to come in. The men’s division was down 15.2%, women’s was down 10.2% and accessories were down 19.1%. Mall stores were down 23.5% and outlets were down 5.6%.”

     Searles continued, “Despite poor performance when compared to last year, our balance sheet has maintained improvement over last year. Our cash balance at the end of the quarter was $12.6 million and compares to an outstanding balance under a revolving line of credit of $13.0 million at the end of the quarter last year. Total inventory at the end of the quarter, including in transit inventory, is 30.7% below last year. We will consider any improvement over our 2005 fourth quarter comparable store sales decrease of 10.0% to be some evidence that our strategies are beginning to take hold. Remember, this is a multi-year strategy — we are in year one with our most important season upon us. We are excited about the course Wilsons Leather is taking. The work being done today will impact the future of Wilsons Leather and we hope that it will result in sustainable long-term growth for our shareholders.”

Wilsons Leather

7401 Boone Avenue North
Brooklyn Park, Minnesota 55428
763.391.4000
www.wilsonsleather.com

About Wilsons Leather

Wilsons Leather is the leading specialty retailer of leather outerwear, accessories and apparel in the United States. As of October 28, 2006, Wilsons Leather operated 424 stores located in 45 states, including 296 mall stores, 114 outlet stores and 14 airport stores.

Except for historical information, matters discussed in this press release are forward-looking statements that involve risks and uncertainties, and actual results may be materially different. Such statements are based on information available to management as of the time of such statements and include statements related to future comparable store sales results, business strategies, changes to merchandise mix and future sales results. Factors that could cause actual results to differ include: changes in customer shopping patterns; competition in our markets; uncertainty in general economic conditions, including rising energy prices; risks associated with our strategic initiatives, including development of our new store concept and wholesale business; continued declines in comparable store sales; unseasonably warm weather; our inability to effectively respond to changes in fashion trends and consumer demands; our inability to grow the business as planned; decreased availability and increased cost of leather; risks associated with foreign sourcing and international business; seasonality of our business; our inability to renew existing license agreements and/or enter into new licensing agreements; the public sale into the market of common stock issued pursuant to options granted under our employee benefit plans or shares issued in our 2004 equity financing or issuable upon exercise of warrants delivered in connection with our equity financing; risks associated with our debt service; risks associated with estimates made by management based on our critical accounting policies; changes to financial accounting standards that may affect our results of operations; loss of key members of our senior management team; concentration of our common stock; volatility of the market price of our common stock; failure of results of operations to meet expectations of research analysts; reliance on third parties for upgrading and maintaining our management information systems; war, acts of terrorism or the threat of either; and interruption in the operation of our corporate offices and distribution center. The information included in this press release is operative as of this date only. Wilsons Leather does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. In order to ensure that all investors continue to have equal access to the same information, Wilsons Leather will refrain from updating forward-looking statements made in this press release unless it does so through means designed to provide broad distribution of the information to the public.

###

Wilsons Leather

7401 Boone Avenue North
Brooklyn Park, Minnesota 55428
763.391.4000
www.wilsonsleather.com

WILSONS THE LEATHER EXPERTS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

	October 28,		January 28,		October 29,
	2006		2006(1)		2005
	(Unaudited)				(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	12,595	$	45,552	$	—
Accounts receivable, net		4,240		4,063		6,409
Inventories		85,286		85,645		122,988
Prepaid expenses		2,573		1,987		5,091
TOTAL CURRENT ASSETS		104,694		137,247		134,488
Property and equipment, net		40,654		41,045		42,733
Other assets, net		1,105		1,576		1,733
TOTAL ASSETS	$	146,453	$	179,868	$	178,954
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	26,787	$	12,036	$	34,260
Notes payable		—		—		13,642
Accrued expenses		16,427		16,595		18,967
Income taxes payable		794		5,685		2,504
Deferred income taxes		20		53		5,585
TOTAL CURRENT LIABILITIES		44,028		34,369		74,958
Long-term debt		20,000		20,000		20,000
Other long-term liabilities		17,408		17,445		17,774
Total shareholders’ equity		65,017		108,054		66,222
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	146,453	$	179,868	$	178,954

1. Derived from audited consolidated financial statements.

Note: The Company’s inventories are determined by the retail method on the last-in, first-out (''LIFO’’) basis. The difference in inventories between the LIFO method and the first-in, first-out method was not material as of October 28, 2006, January 28, 2006 or October 29, 2005.

WILSONS THE LEATHER EXPERTS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

	For the three months ended
	October 28,			October 29,
	2006			2005
NET SALES	$	64,457		$	76,389
COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS		49,036			56,232
Gross margin		15,421			20,157
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		26,554			27,226
DEPRECIATION AND AMORTIZATION		2,999			3,275
Operating loss		(14,132	)		(10,344	)
INTEREST EXPENSE, net		579			949
Loss before income taxes		(14,711	)		(11,293	)
INCOME TAX PROVISION (BENEFIT)		(654	)		423
Net loss	$	(14,057	)	$	(11,716	)
BASIC AND DILUTED LOSS PER SHARE:
Basic and diluted loss per share	$	(0.36	)	$	(0.30	)
Weighted average shares outstanding — basic and diluted		39,173			39,021

WILSONS THE LEATHER EXPERTS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

	For the year-to-date period ended
	October 28,			October 29,
	2006			2005
NET SALES	$	188,295		$	219,135
COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS		151,266			160,165
Gross margin		37,029			58,970
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		76,226			76,598
DEPRECIATION AND AMORTIZATION		9,280			10,567
Operating loss		(48,477	)		(28,195	)
INTEREST EXPENSE, net		1,143			2,295
Loss before income taxes		(49,620	)		(30,490	)
INCOME TAX BENEFIT		(4,561	)		(988	)
Net loss	$	(45,059	)	$	(29,502	)
BASIC AND DILUTED LOSS PER SHARE:
Basic and diluted loss per share	$	(1.15	)	$	(0.76	)
Weighted average shares outstanding — basic and diluted		39,141			38,973