March 25 (Reuters) - Bakers Footwear Group Inc (BKRS.O) said it was in compliance with its loan covenants after amending its debt agreement and posted a more than 11-fold jump in quarterly profit on reduced expenses, sending its shares soaring to more than double their previous closing.

Photo: www.bakersshoes.com

The St. Louis-based retailer, which specializes in fashion footwear, also said it believes it has adequate liquidity to fund working capital requirements throughout 2010.

Bakers said it entered into a fourth amendment to its $7.5 million three-year subordinated secured term loan on Tuesday 23 March with Private Equity Management Group, as arranger and administrative agent on behalf of an affiliated lender.

The company had previously amended the loan in May 2008 and in April and September of last year.

For the fourth quarter ended Jan. 30, it earned $5.6 million, or 76 cents a share, compared with $483,000 or 7 cents a share, a year ago.

Revenue rose nearly 4 percent to $57.6 million.

Cost of goods fell 4 percent to $36.6 million, while general and administrative expenses fell 24 percent to $3.7 million.

Shares of the company were up $1.66 at $3.26 in late morning trade Thursday 25 March on Nasdaq. They touched a year high of $3.55 earlier in the session. (Reporting by Renju Jose in Bangalore; Editing by Anthony Kurian)