Home / Knowledge / News / Apparel/Garments / Destination Maternity to exceed last year's results
Destination Maternity to exceed last year's results
08
Jul '11
Destination Maternity Corporation, the world's leading maternity apparel retailer, reported net sales for the month of June and announced that it expects its third quarter fiscal 2011 earnings to be near the low end of its prior earnings guidance range and to exceed last year's third quarter earnings. The Company also announced that it made a $10 million optional prepayment of its Term Loan during the third quarter of fiscal 2011.

Net sales for the month of June 2011 increased 4.6% to $42.9 million from $41.0 million reported for the month of June 2010.

The increase in total reported sales for June 2011 compared to June 2010 resulted primarily from: (1) increased sales due to the expansion of the Company's maternity apparel leased department relationship with Macy's; and (2) increased sales from the Company's licensed wholesale relationship; partially offset by (3) decreased sales related to the Company's continued efforts to close underperforming stores; and (4) the decrease in comparable retail sales.

Net sales for the third quarter of fiscal 2011 increased 3.3% to $146.7 million from $142.0 million reported for the third quarter of fiscal 2010.

The increase in total reported sales for the third quarter of fiscal 2011 compared to the third quarter of fiscal 2010 resulted primarily from: (1) increased sales due to the expansion of the Company's maternity apparel leased department relationship with Macy's; and (2) increased Internet sales; partially offset by (3) the decrease in comparable store sales; and (4) decreased sales related to the Company's continued efforts to close underperforming stores.

Ed Krell, Chief Executive Officer of Destination Maternity, noted, "We saw an improvement in our comparable retail sales performance for June 2011 compared to May 2011, although sales were still somewhat lower than planned, even with price promotional activity and additional markdowns taken to spur sales and manage inventory levels.

“With our continued tight management of expenses, we expect our earnings for the third quarter to be near the low end of our prior earnings guidance range, even with sales and gross margin being below plan. We expect our GAAP diluted earnings per share for the third quarter to be between $0.70 and $0.72 per share, near the low end of our prior earnings guidance range of $0.72 to $0.83 per share that we provided in our April 27, 2011 press release, and to be higher than last year's third quarter GAAP diluted earnings of $0.67 per share.

"Our total sales of $146.7 million for the third quarter were below the low end of our sales guidance range of $149.0 to $154.5 million, provided in our April 27 press release, driven largely by the comparable store sales decrease of 2.8%, which was at the low end of our guidance range of between a decrease of 2.8% and an increase of 1.1%, and a slower than planned ramp up of sales from our Macy's expansion.

“We recognize the continued difficult economic environment for the consumer, especially the moderate-priced consumer, although we remain focused on the things that we can control, not on external factors that we cannot control. Our key focus continues to be on turning around our sales performance through initiatives to enhance our merchandise assortments, merchandise presentation and customer experience.


Must ReadView All

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

July 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

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

Yes No

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

Yes No

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


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



X