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) May 20, 2008

Wilsons The Leather Experts Inc.

(Exact name of registrant as specified in its charter)

Minnesota
(State or other jurisdiction
of incorporation) 000-21543
(Commission File Number) 41-1839933
(IRS Employer
Identification No.)

7401 Boone Ave. N.
Brooklyn Park, Minnesota
(Address of principal executive offices) 55428
(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))

Item 2.02. Results of Operations and Financial Condition.

     On May 20, 2008, 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 May 20, 2008, containing its financial results for the first quarter ended May 3, 2008.

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: May 20, 2008	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 May 20, 2008, containing its financial results for the first quarter ended May 3, 2008.	Electronic Transmission

EX-99.1

Contact:
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
First Quarter 2008 Operating Results

     MINNEAPOLIS — (BUSINESS WIRE) — May 20, 2008 — Wilsons The Leather Experts Inc. (NASDAQ: WLSN) today announced results for the quarter ended May 3, 2008. Net sales decreased 14.0% to $36.4 million compared to $42.4 million for the same period last year. Sales related to the 163 stores that closed during the first quarter of 2008 are reported as discontinued operations.

     Comparable store sales for the first quarter ended May 3, 2008 decreased 8.8% compared to a decrease of 20.8% in the same period last year.

     Wilsons Leather reported a loss from continuing operations for the 2008 first quarter of $13.4 million, or $0.38 per basic and diluted share. This compares to a loss from continuing operations for the 2007 first quarter of $15.3 million, or $0.39 per basic and diluted share. The 2008 first quarter loss from discontinued operations was $9.0 million, or $0.22 per basic and diluted share, and includes a charge for future estimated lease obligations of $5.3 million for the discontinued stores. This compares to a loss from discontinued operations for the 2007 first quarter of $5.9 million, or $0.15 per basic and diluted share. Net loss available to common shareholders for the 2008 first quarter was $23.7 million, or $0.60 per basic and diluted share, and includes a preferred stock dividend of $1.4 million to determine net loss attributable to common shareholders. This compares to a net loss available to common shareholders during the 2007 first quarter of $21.3 million, or $0.54 per basic and diluted share.

     The Company saw some improvement in the performance of its go-forward operations during the quarter. Comparable store sales results improved each month during the quarter and were positive during the month of April. First quarter 2008 comparable store sales results for malls were down 27.1%, outlets were down 1.4%, men’s was down 21.7%, women’s was down 27.1% and accessories were up 7.8%. Across all channels, handbag comparable store sales results were up 28.1%. The Company believes that the first quarter results indicate that the strategic shift toward a predominantly accessories based assortment is headed in the right direction.

Wilsons Leather

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

     The Company continues to face many challenges and will need to successfully mitigate these challenges in order to convert its go-forward mall stores into an accessories concept. The Company needs to successfully exit all of the lease obligations in the stores that were recently closed, raise capital and lessen some of the current restrictions in its credit agreement.

About Wilsons Leather

Wilsons Leather is a leading specialty retailer of leather outerwear, accessories and apparel in the United States.

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: our ability to obtain necessary funding during the second quarter of 2008, which may also require an amendment to our credit facilities; potential delisting of our common stock if we are unable to satisfy the Nasdaq listing requirements; our ability to exit store leases for the 158 liquidation stores on terms acceptable to us and our lender; our ability to utilize our tax net operating loss carryforwards; our ability to expand our accessories business and acquire suitable accessories brands; risks associated with our ability to strengthen our existing store base and develop our accessories concept; continued declines in comparable store sales; dependence on our key suppliers to implement our designer brand merchandise strategy; changes in customer shopping patterns; the potential for additional impairment losses if our operating performance does not improve; competition in our markets; uncertainty in general economic conditions; unseasonably warm weather; our ability to effectively respond to changes in fashion trends and consumer demands; decreased availability and increased cost of leather; risks associated with foreign sourcing and international business; seasonality of our business; 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 2004 equity financing, as well as shares issuable upon conversion and exercise of the preferred stock and warrants issued in connection with the financing that was completed on June 15, 2007; 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 ownership of our common stock; volatility of the market price of our common stock; 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 (Unaudited)
(In thousands)

	May 3,			February 2,		May 5,
	2008			2008		2007
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	9,313		$	7,362	$	9,469
Accounts receivable, net		2,750			3,462		2,344
Inventories		33,777			58,307		62,463
Prepaid expenses		3,007			6,821		6,169
Income taxes receivable		208			141		590
TOTAL CURRENT ASSETS		49,055			76,093		81,035
Property and equipment, net		14,789			13,681		38,249
Other assets, net		885			815		1,180
TOTAL ASSETS	$	64,729		$	90,589	$	120,464
LIABILITIES, PREFERRED STOCK AND COMMON SHAREHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable	$	9,037		$	16,288	$	12,361
Accrued expenses		11,472			12,718		12,423
Deferred income taxes		430			723		220
Current liabilities of discontinued operations		8,918			—		—
TOTAL CURRENT LIABILITIES		29,857			29,729		25,004
Long-term debt		—			—		20,000
Income taxes payable		1,398			1,367		1,451
Other long-term liabilities		11,962			15,441		16,418
TOTAL LIABILITIES		43,217			46,537		62,873
Preferred stock		40,232			39,033		—
Total common shareholders’ equity (deficit)		(18,720	)		5,019		57,591
TOTAL LIABILITIES, PREFERRED STOCK AND COMMON SHAREHOLDERS’ EQUITY (DEFICIT)	$	64,729		$	90,589	$	120,464

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 May 3, 2008, February 2, 2008 or May 5, 2007.

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

	For the three months ended
	May 3,			May 5,
	2008			2007
NET SALES	$	36,435		$	42,364
Cost of goods sold, buying and occupancy costs		31,464			36,205
GROSS MARGIN		4,971			6,159
Selling, general and administrative expenses		17,155			19,060
Depreciation and amortization		1,026			2,066
OPERATING LOSS		(13,210	)		(14,967	)
Interest expense, net		171			431
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX PROVISION (BENEFIT)		(13,381	)		(15,398	)
Income tax provision (benefit)		23			(73	)
LOSS FROM CONTINUING OPERATIONS		(13,404	)		(15,325	)
Loss from discontinued operations, net of income tax benefit		(8,960	)		(5,940	)
NET LOSS		(22,364	)		(21,265	)
Preferred stock paid-in-kind dividends		1,373			—
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS	$	(23,737	)	$	(21,265	)
LOSS PER COMMON SHARE — BASIC AND DILUTED:
Loss from continuing operations	$	(0.38	)	$	(0.39	)
Loss from discontinued operations		(0.22	)		(0.15	)
Net loss	$	(0.60	)	$	(0.54	)
Weighted average common shares outstanding — basic and diluted		39,350			39,212