Destination Maternity Q2 FY17 online sales up 30.2%

12 Sep '17

2 min read

Courtesy: Destination Maternity

For the second quarter of fiscal 2017, the world's largest designer and retailer of maternity apparel, Destination Maternity has recorded 30.2 per cent increase in e-commerce sales from prior year second quarter. The company's gross profit margin was 53.0 per cent compared to gross margin of 51.5 per cent for the corresponding period of previous year.

The net sales were $98.3 million compared with $106.5 million for the comparable prior year quarter. The decrease was driven by the closure of underperforming stores, a decline in comparable sales, and exit of the Kohl's relationship, which was included in prior year results. Comparable sales decreased 3.4 per cent for the second quarter ending July 29, 2017, compared to a 2.7 per cent decrease for the second quarter of fiscal 2016 ending July 30, 2016.

SG&A for the second quarter of fiscal 2017 decreased 6.7 per cent to $52.8 million, compared to $56.6 million for the second quarter of fiscal 2016. As a percentage of net sales, SG&A increased to 53.7 per cent for the second quarter of fiscal 2017 compared to 53.1 per cent for the second quarter of fiscal 2016.

The company incurred store closing, asset impairment and asset disposal expenses of $1.1 million compared to expenses of $0.4 million for the second quarter of fiscal 2016.Adjusted EBITDA before other charges was $4.1 million compared to $3.3 million for the second quarter of fiscal 2016.

Inventories were $69.8 million at July 29, 2017, a decrease of approximately $0.7 million compared to $70.5 million at July 30, 2016. Capital expenditures totaled $3.6 million primarily driven by investments in stores and, to a lesser extent, investments to support key systems projects. For the first six months of fiscal 2016 capital expenditures of $6.8 million were primarily driven by investments in stores and investments to support key systems projects. (RR)

Fibre2Fashion News Desk – India

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