Home / Knowledge / News / Apparel/Garments / Destination Maternity slips into Q2FY16 GAAP net loss
Destination Maternity slips into Q2FY16 GAAP net loss
31
Aug '15
For the second fiscal quarter ended August 1, 2015, US based maternity apparel retailer Destination Maternity Corporation slipped in to a GAAP net loss vis-à-vis GAAP net income in the prior fiscal second quarter.

For the second quarter of fiscal 2016, the retailer reported a GAAP net loss of $2.7 million, or $0.20 per share, as against GAAP net income of $0.3 million, or $0.02 per diluted share in the fiscal ago quarter.

The second quarter of current fiscal includes a one-time pretax cash benefit of $4.1 million or $2.5 million net of tax from the termination of a superstore lease and other charges.

While, the second quarter of fiscal 2015 included other charges of $0.4 million, net of tax, related to the relocations of the Company's headquarters and distribution facilities and other charges.

“On an adjusted basis, for the second quarter of fiscal 2016, the company reported a net loss of $1.7 million, or $0.12 per share,” the retailer said in a press release.

This compares to an adjusted loss of $0.3 million, or $0.02 per share for the three months ended August 2, 2014.

Net sales for the reporting quarter amounted to $119.3 million compared with $120.8 million for the comparable period of earlier fiscal.

“The slight dip in sales resulted from to efforts to close underperforming stores and decreased licensed sales, partially offset by an increase in comparable sales,” it explained.

Comparable sales increased 2.0 per cent, a turnaround, when compared to a 5.9 per cent decrease for the three month period ended August 2, 2014.

“The improvement in comparable sales was driven by increased transactions resulting in higher unit sales,” the clothing retailer informed.

Gross margin dropped to 46.4 per cent in the quarter under review from 49.8 per cent in the corresponding quarter of earlier fiscal.

“The year-over-year decrease in gross margin is consistent with expectations and reflects price promotional and markdown activity to more aggressively manage inventory,” the company observed.

Selling, general and administrative expenses were $61.6 million, or 51.7 per cent versus $60.2 million, or 49.8 per cent of net sales for the second quarter of previous fiscal.

“The increase in SG&A reflects higher expenses for corporate headquarters rent, increased healthcare costs and increased variable incentive compensation expense,” it noted.

This was substantially offset by cost reductions resulting from the company's continued closure of underperforming stores, and lower marketing and advertising expense.

For the reporting period, store closing, asset impairment and asset disposal activity was $4.0 million of income compared to expense of $0.4 million for the preceding fiscal's same quarter.

During the second quarter of fiscal 2016, Destination Maternity received a one-time cash benefit of $4.1 million from the termination of a superstore lease. (AR)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Nine West

Fashion | On 17th Jun 2018

ABG wins bid in Nine West Holdings auction

Authentic Brands Group (ABG), owner of a global portfolio of...

Courtesy: Kreussler

Textiles | On 17th Jun 2018

USDA certifies Kreussler's solvent as biobased

The US Department of Agriculture (USDA) has certified Kreussler's...

Courtesy: ITUC

Textiles | On 17th Jun 2018

Democratic space shrink & corporate greed are rising: ITUC

Shrinking democratic space for working people and unchecked corporate ...

Interviews View All

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Urmil Arya

Sushila International, a well established textile organisation established ...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Johan Berlin
InvestKonsult Sweden AB

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search