Net sales for the second quarter of fiscal 2019 decreased 11.9 per cent to $84.9 million from $96.4 million for the second quarter of fiscal 2018. Sales were negatively impacted by the net closure of 6 owned locations and 55 leased lease locations as well as a decrease in comparable sales.
Net sales for the first six months decreased 10.3 per cent to $179.1 million from $199.6 million for the comparable period in fiscal 2018.
"Our results this quarter illustrate the ongoing headwinds facing our business. While cost savings initiatives drove reductions in SG&A expense and a pullback in promotional cadence helped to hold margins in line with the prior year, sales declines of 11.9 per cent year-over-year more than offset the benefits to our bottom line, said Dave Helkey, chief financial officer of Destination Maternity.
"While we continue to believe we have a compelling business and remain focused on delivering long-term profitable growth, challenges persist and more needs to be done. As part of our ongoing review of the company's strategic initiatives, our board of directors has announced that it has engaged Greenhill & Co to commence a comprehensive review of strategic alternatives. We believe that it is in the best interests of our shareholders to conduct a thorough evaluation of all options reasonably available to the company to position the business for success."
The company has withdrawn its adjusted EBITDA guidance for the remainder of 2019 as a result of the announced review of strategic alternatives. (PC)
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