Home / Knowledge / News / Apparel/Garments / Destination provides updated earnings guidance for Q1
Destination provides updated earnings guidance for Q1
28
Jan '12
Destination Maternity Corporation announced operating results for the first quarter of fiscal 2012, which ended December 31, 2011. The Company's diluted earnings per share for its first quarter of fiscal 2012 were at the low end of its November 17, 2011 earnings guidance. On January 25, 2012 the Company announced that its Board of Directors declared a regular quarterly cash dividend of $0.175 per share payable March 28, 2012.

Net sales for the first quarter of fiscal 2012 increased 0.7% to $136.4 million from $135.4 million for the first quarter of fiscal 2011.

The increase in sales for the first quarter of fiscal 2012 compared to 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) a 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. The net sales of $136.4 million for the first quarter were below the Company's guidance range of $138 to $142 million provided in November 2011.

The Company estimates that the cannibalization impact of the leased department expansion with Macy's in February 2011 hurt its first quarter comparable sales by between 1 and 2 percentage points. The Company's Internet sales, which are included in the Company's reported comparable sales, increased 30% for the first quarter of fiscal 2012, on top of an 18% increase in the first quarter of fiscal 2011.

Gross margin for the first quarter of fiscal 2012 was 51.0%, a decrease versus last year's first quarter gross margin of 53.9%, due primarily to lower merchandise margin driven by higher promotional activity, higher markdowns and higher product costs. Gross margin for the first quarter was somewhat lower than planned, due to price promotional activity and additional markdowns taken to spur sales and manage inventory.

The Company made an optional $5.0 million prepayment on its Term Loan in the first quarter of fiscal 2012. On January 25, 2012 the Company announced that its Board of Directors declared a regular quarterly cash dividend of $0.175 per share, payable March 28, 2012 to stockholders of record at the close of business on March 7, 2012.

On March 1, 2011, the Company effected a two-for-one stock split in the form of a stock dividend. All share and per share amounts included in this first quarter fiscal 2012 earnings release give effect to the stock split and have been adjusted retroactively for all periods presented.

Ed Krell, Chief Executive Officer of Destination Maternity Corporation, noted, "For the first quarter of fiscal 2012, our earnings were at the low end of our prior guidance range, driven by: (1) sales being below our expected sales range; and (2) gross margin being lower than planned, due to price promotional activity and additional markdowns taken to spur sales and manage inventory; partially offset by (3) lower than planned expenses, driven by our continued tight management of expenses.


Must ReadView All

Two slabs of GST will affect Bengaluru garment units: SIGA

Apparel/Garments | On 23rd Jan 2018

Two slabs of GST will affect Bengaluru garment units: SIGA

The South India Garment Association (SIGA) has voiced its concern...

US FTC updates textile rules to drop obsolete requirement

Textiles | On 23rd Jan 2018

US FTC updates textile rules to drop obsolete requirement

The US Federal Trade Commission has eliminated an obsolete provision...

Indian textile industry at inflection point: Report

Textiles | On 23rd Jan 2018

Indian textile industry at inflection point: Report

The textile and apparel sector of India is at an inflection point...

Interviews View All

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Nitesh Mittal

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

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Marcel Alberts
Eurofibers

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Prathyusha Garimella
Prathyusha Garimella

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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

January 2018

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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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