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Destination Maternity sales rise 3% in Q2 FY'12
06 Apr '12
5 min read
(1) having an extra day in the quarter versus last year, due to 2012 being a leap year; and
(2) The benefit of a days shift in the calendar month of March compared to last year, with an extra Friday and Saturday compared to last March, and one less Tuesday and Wednesday compared to last March.
Adjusting out these "calendar shift" benefits, our days-adjusted comparable sales for the second quarter was an increase of 0.7%. Also, our comparable sales were 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 second quarter comparable sales by approximately 1 percentage point.
We believe our sales for the second quarter were positively impacted by earlier than normal warm weather conditions in March throughout much of the United States, which helped sales of seasonal Spring and Summer apparel. We continue to be pleased with the growth of our Internet sales, which increased 39% for the second quarter of fiscal 2012, on top of an 18% increase in the second quarter of fiscal 2011.
"Our key focus continues to be improving our sales performance through initiatives to enhance our merchandise assortments, merchandise presentation and customer experience. We are encouraged by the customer reaction and sales results for our Spring and Summer 2012 product lines, although we recognize that the unusually warm weather in March throughout much of the United States undoubtedly helped our sales results."
For the quarter ended March 31, 2012, the Company opened four stores, including three multi-brand Destination Maternity stores, and closed 17 stores, including six store closings related to Destination Maternity store openings. As of March 31, 2012, the Company operates 643 stores, 1,384 leased department locations and 2,027 total retail locations, compared to 672 stores, 1,703 leased department locations and 2,375 total retail locations operated as of March 31, 2011.
The decrease in leased department locations at the end of March 2012 versus the end of March 2011 predominantly reflects the closure of the Company's 291 remaining leased departments within Kmart locations in October 2011. Kmart represented only a small portion of the overall sales generated by the Company's leased department relationship with Sears and Kmart through the Company's agreement with Sears Holdings Corporation. The Company continues to operate leased departments in Sears stores throughout the United States. As of March 31, 2012, the Company operates 516 leased department locations in Sears stores.
Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel.
(2) The benefit of a days shift in the calendar month of March compared to last year, with an extra Friday and Saturday compared to last March, and one less Tuesday and Wednesday compared to last March.
Adjusting out these "calendar shift" benefits, our days-adjusted comparable sales for the second quarter was an increase of 0.7%. Also, our comparable sales were 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 second quarter comparable sales by approximately 1 percentage point.
We believe our sales for the second quarter were positively impacted by earlier than normal warm weather conditions in March throughout much of the United States, which helped sales of seasonal Spring and Summer apparel. We continue to be pleased with the growth of our Internet sales, which increased 39% for the second quarter of fiscal 2012, on top of an 18% increase in the second quarter of fiscal 2011.
"Our key focus continues to be improving our sales performance through initiatives to enhance our merchandise assortments, merchandise presentation and customer experience. We are encouraged by the customer reaction and sales results for our Spring and Summer 2012 product lines, although we recognize that the unusually warm weather in March throughout much of the United States undoubtedly helped our sales results."
For the quarter ended March 31, 2012, the Company opened four stores, including three multi-brand Destination Maternity stores, and closed 17 stores, including six store closings related to Destination Maternity store openings. As of March 31, 2012, the Company operates 643 stores, 1,384 leased department locations and 2,027 total retail locations, compared to 672 stores, 1,703 leased department locations and 2,375 total retail locations operated as of March 31, 2011.
The decrease in leased department locations at the end of March 2012 versus the end of March 2011 predominantly reflects the closure of the Company's 291 remaining leased departments within Kmart locations in October 2011. Kmart represented only a small portion of the overall sales generated by the Company's leased department relationship with Sears and Kmart through the Company's agreement with Sears Holdings Corporation. The Company continues to operate leased departments in Sears stores throughout the United States. As of March 31, 2012, the Company operates 516 leased department locations in Sears stores.
Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel.
Destination Maternity Corporation
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