Home / Knowledge / News / Apparel/Garments / Destination Maternity posts marginal hike in Q1 FY12 sales
Destination Maternity posts marginal hike in Q1 FY12 sales
06
Jan '12
Destination Maternity Corporation, the world's leading maternity apparel retailer, reported sales and provided updated earnings guidance for the first quarter of fiscal 2012 ended December 31, 2011.

Net sales for the first quarter of fiscal 2012 increased 0.7% to $136.4 million from $135.4 million reported for the first quarter of fiscal 2011. Comparable sales (which include Internet sales) decreased 4.1% versus a comparable sales increase of 2.1% for the first quarter of fiscal 2011.

The increase in total reported sales for the first quarter of fiscal 2012 compared to the first quarter of fiscal 2011 resulted primarily from increased sales due to the expansion of the Company's maternity apparel leased department relationship with Macy's, partially offset by: (1) the decrease in comparable sales, (2) decreased sales related to the Company's continued efforts to close underperforming stores, and, to a much lesser extent, (3) a decrease in sales due to the closure of all of the Company's remaining leased departments within Kmart stores during the month of October 2011.

Ed Krell, Chief Executive Officer of Destination Maternity, noted, "In the first quarter of fiscal 2012, our sales were weaker than planned, and we continued to need price promotional activity and additional markdowns to spur sales and manage inventory. Thus, for the quarter, our sales were slightly below the low end of our expected sales range and our gross margin was somewhat lower than planned.

With this lower than planned sales and gross margin, partially offset by our continued tight management of expenses, we expect our earnings for the first quarter to be at the low end or slightly lower than the low end of our prior earnings guidance range. Our prior earnings guidance range for first quarter GAAP diluted earnings per share, as provided in our November 17, 2011 press release, was $0.17 to $0.26 per share.

"Our total sales of $136.4 million for the first quarter was slightly below the lower end of our sales guidance range of $138 to $142 million provided in our November 17 press release, and our comparable sales decrease of 4.1% was below our guidance range of down 0.5% to 3.5% for the quarter.

It is important to note that our comparable sales results are negatively impacted by the cannibalization impact of our Macy's leased department expansion, which had its first full month of operation in March 2011.

We estimate that this cannibalization impact hurt our first quarter comparable store sales by between 1 and 2 percentage points. We also believe our sales for the quarter were somewhat negatively impacted by unseasonably warm weather in December throughout much of the United States, which hurts sales of seasonal Fall and Winter apparel.

We continue to be pleased with the growth of our Internet sales, which increased 30% for the first quarter of fiscal 2012, on top of an 18% increase in the first quarter of fiscal 2011.

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

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

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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



X