UPDATE 1-Bakers Footwear fails to comply with listing rules
* Says expects delisting notice from Nasdaq this week
* Q1 net loss $0.47/shr vs loss of $0.39/shr, last year
* Shares down 36 pct
June 15 (Reuters) - Bakers Footwear Group Inc BKRS.O reported a wider first-quarter loss as its sandals failed to find favor with consumers and said that it did not achieve the minimum level of shareholders' equity to remain listed on Nasdaq, sending its shares down 36 percent.
The company, which specializes in fashion footwear, said it expects a delisting notice from Nasdaq as early as this week and is working with market makers to have its common stock quoted on the OTC Bulletin Board.
"While disappointed that we are unable to maintain our Nasdaq listing, we do not believe that our trading on the OTC Bulletin Board will affect the operations of our business in any significant way," Chief Executive Peter Edison said.
For the first quarter ended May 1, the company reported a net loss of $3.5 million, or 47 cents a share, compared with a loss of $2.8 million, or 39 cents, a year ago.
Net sales fell 3.2 percent to $43.5 million, while same-store sales fell 1.6 percent.
Gross margins shrunk to 24.7 percent from 28.2 percent last year.
Shares of the St. Louis-based retailer were trading down 31 percent at $1.35, off an intra-day low of $1.26, Tuesday morning on Nasdaq. (Reporting by Abhishek Takle in Bangalore; Editing by Jarshad Kakkrakandy)