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

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Apparel/Garments | On 21st Sep 2017

BFC announces partnership with Chinese firm JD.com

The British Fashion Council (BFC) has forged a new partnership...

Textiles | On 21st Sep 2017

Indonesia’s textile exports may reach $15 billion by 2019

Indonesia’s textile-related exports are projected to reach $15...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Urs Stalder
Sanitized AG

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

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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