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

Courtesy: Bangladesh Bank

Apparel/Garments | On 22nd May 2018

Bangladesh Bank enhances EDF loan limit to $25 million

Bangladesh Bank has enhanced the loan limit under Export Development...

Sri Lanka's textile imports up 32.5% in February 2018

Textiles | On 22nd May 2018

Sri Lanka's textile imports up 32.5% in February 2018

In what might be an indication of higher exports in the coming...

Provide power at Rs 8/kWh to textile units: APTMA

Textiles | On 22nd May 2018

Provide power at Rs 8/kWh to textile units: APTMA

All Pakistan Textile Mills Association (APTMA) has asked the...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

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...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Tony Ward
Tony Ward

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

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search