Internet sales up at Destination Maternity
Destination Maternity Corporation, the world's leading maternity apparel retailer, announced operating results for the fourth quarter and full year fiscal 2011, which ended September 30, 2011, reflecting record annual earnings for the full year fiscal 2011.
The Company's diluted earnings per share for its fourth quarter and full year fiscal 2011 were slightly higher than the low end of its July 27, 2011 earnings guidance. On November 15, 2011 the Company announced that its Board of Directors declared a regular quarterly cash dividend of $0.175 per share payable December 28, 2011.
Full Year Fiscal 2011 Financial Results
• GAAP net income for fiscal 2011 was $23.0 million, a 37% increase compared to $16.8 million for fiscal 2010. GAAP diluted earnings per share for fiscal 2011 was $1.75, a 32% increase compared to $1.33 for fiscal 2010.
• Non-GAAP adjusted net income (before restructuring and other charges, stock compensation expense, and loss on extinguishment of debt) for fiscal 2011 was $24.6 million, a 14% increase over the comparably adjusted non-GAAP net income of $21.6 million for fiscal 2010. Non-GAAP adjusted diluted earnings per share for fiscal 2011 was $1.87 per share, a 10% increase over the comparably adjusted non-GAAP diluted earnings per share of $1.70 for fiscal 2010.
• GAAP net income and Non-GAAP adjusted net income for fiscal 2011 include a reduction of state income tax expense, net of federal expense, of $0.9 million, or approximately $0.06 per share (diluted), related to settlements of uncertain income tax positions.
• Adjusted EBITDA was $54.4 million for fiscal 2011, an increase of 13% over the $48.3 million of Adjusted EBITDA for fiscal 2010. Adjusted EBITDA is defined in the financial tables at the end of this press release.
• Adjusted EBITDA before restructuring and other charges was $54.6 million for fiscal 2011, an increase of 1.1% over the $54.0 million of Adjusted EBITDA before restructuring and other charges for fiscal 2010.
• Net sales for fiscal 2011 increased 2.7% to $545.4 million from $531.2 million for fiscal 2010. The increase in sales for fiscal 2011 compared to 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) decreased sales related to the Company's continued efforts to close underperforming stores, and (4) the decrease in comparable store sales.
• Comparable retail sales (which consists of comparable store sales and Internet sales) for fiscal 2011 increased 0.1% versus a comparable retail sales decrease of 3.4% for fiscal 2010. During fiscal 2011, comparable store sales decreased 1.4%, and Internet sales increased 22%.
We estimate that the cannibalization impact of our leased department expansion with Macy's in February 2011 hurt our fiscal 2011 comparable retail sales by approximately 1 percentage point, reflecting a partial year impact. During fiscal 2010, comparable store sales decreased 5.1%, and Internet sales increased 32%.