Home / Knowledge / News / Apparel/Garments / Destination Maternity steeply trims Q4FY16 net loss
Destination Maternity steeply trims Q4FY16 net loss
31
Mar '16
Courtesy: Destination Maternity
Courtesy: Destination Maternity
For the fourth fiscal quarter ended January 30, 2016, apparel retailer Destination Maternity trimmed its net loss steeply from a fiscal ago quarter.

A press release from Destination Maternity said, GAAP net loss improved to $3.1 million in the reporting quarter compared to a net loss of $17.0 million for the three months ended January 31, 2015.

Adjusted net loss was $1.5 million, or $0.11 per diluted share as against adjusted net loss of $13.8 million, or $1.02 per diluted share, for the fourth quarter of fiscal 2015.

Comparable sales decreased 3.5 per cent vis-à-vis a 1.0 per cent decline for the three month period ended January 31, 2015.

For the quarter under review, gross margin was 49.8 per cent, up from 38.4 per cent in the prior fiscal period, which included a 9.0 per cent negative impact from the $10.9 million inventory write-down.

“Excluding the inventory write down from the prior year, gross profit margin improved by 240 basis points in the fourth quarter of fiscal 2016 versus the same quarter of previous fiscal,” the retailer said.

SG&A declined $3.1 million to $60.8 million for the reporting period or 51.4 per cent of net sales, an improvement of 130 basis points from the earlier fiscal's comparable quarter.

For full fiscal 2016, GAAP net loss was $4.5 million compared to net loss of $10.1 million for the twelve months ended January 31, 2015.

Adjusted net loss was $0.2 million or $0.01 per diluted share as against adjusted net loss of $6.7 million, or $0.50 per diluted share in fiscal 2015.

In fiscal 2016, comparable sales dropped 1.5 per cent vis-à-vis a dip of 4.4 per cent for the twelve months ended January 31, 2015.

In order to increase financial flexibility to execute its turnaround and position it for sustained profitable growth, the company entered into a new secured term loan agreement for $32 million due March 25, 2021.

“The proceeds were used to pay down existing borrowings under the company's credit line and in which Wells Fargo Bank and National Association arranged the financing,” Destination Maternity added.

In addition, as part of the transaction, the company has extended the term of its $70 million revolving credit facility with Wells Fargo through the maturity of the term loan.

In connection with the debt refinancing, the company's board of directors agreed to suspend the company's quarterly dividend.

“While dividends have been an important part of its historical shareholder returns, management believes the best return on capital today is through targeted reinvestment into the business,” the company noted.

In fiscal 2017, the company will complete the implementation of a new JDA product allocation tool, and will re-platform its ecommerce sites with Demandware.

These investments follow the company's 2016 projects, which included the move to a new state of the art distribution center in New Jersey and relocating headquarters also to New Jersey from Philadelphia. (AR)

Fibre2Fashion News Desk – India


Must ReadView All

Sri Lanka’s apparel exports rise after EU GSP+ reinstatement

Apparel/Garments | On 18th Nov 2017

Sri Lanka’s apparel exports rise after EU GSP+ reinstatement

Sri Lanka’s apparel exports from January to September 2017 has...

Bangladesh plans 2 leather estates in Rajshahi, Chittagong

Apparel/Garments | On 18th Nov 2017

Bangladesh plans 2 leather estates in Rajshahi, Chittagong

Bangladesh Prime Minister Sheikh Hasina has said two more leather...

ASEAN, Hong Kong sign free trade agreement

Textiles | On 18th Nov 2017

ASEAN, Hong Kong sign free trade agreement

The Association of Southeast Asian Nations (ASEAN) and Hong Kong...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search