Home / Knowledge / News / Apparel/Garments / Sales decline 5.3% at Destination Maternity in Q3 FY'12

Sales decline 5.3% at Destination Maternity in Q3 FY'12

10
Jul '12
Destination Maternity Corporation, the world's leading maternity apparel retailer, reported sales and provided updated earnings guidance for the third quarter of fiscal 2012 ended June 30, 2012.  The Company also announced that it made a $10 million optional prepayment of its Term Loan during the third quarter of fiscal 2012.

Net sales for the third quarter of fiscal 2012 decreased 5.3% to $138.8 million from $146.7 million reported for the third quarter of fiscal 2011. 

Comparable sales (which include Internet sales) decreased 2.4% versus a comparable sales decrease of 1.6% for the third quarter of fiscal 2011.  The decrease in total reported sales for the third quarter of fiscal 2012 compared to the third quarter of fiscal 2011 resulted primarily from the decrease in comparable sales, decreased sales from the Company's licensed relationship and decreased sales related to the Company's continued efforts to close underperforming stores.

Net sales for the first nine months of fiscal 2012 decreased 0.8% to $412.7 million from $416.0 million reported for the first nine months of fiscal 2011.  Comparable sales decreased 1.1% versus a comparable sales decrease of 1.6% for the first nine months of fiscal 2011.

Ed Krell, Chief Executive Officer of Destination Maternity, noted, "Our sales for the third quarter of fiscal 2012 were lower than planned, as our strong early sales of Spring/Summer product in February and March did not continue into the April-June period.  Our gross margin was also lower than planned, due to increased price promotional activity and additional markdowns taken to spur sales and manage inventory levels. 

With this lower than planned sales and gross margin, partially offset by our continued tight management of expenses, we expect our GAAP diluted earnings per share for the third quarter to be between $0.51 and $0.53 per share, below the low end of our prior earnings guidance range.  Our prior earnings guidance range for third quarter GAAP diluted earnings per share, as provided in our April 26, 2012 press release, was $0.57 to $0.70 per share.

"Our total sales of $138.8 million for the third quarter were below the low end of our sales guidance range of $142 to $147 million provided in our April 26 press release, due to our comparable sales decrease of 2.4%, which was below the low end of our guidance range for comparable sales of flat to up 4.0% for the quarter. 

Our reported comparable sales for the third quarter of fiscal 2012 were hurt by approximately 1.0 percentage points due to a calendar shift which helped March sales at the expense of April, with April 2012 having one less Friday and Saturday compared to April 2011. 

Adjusting out this 'calendar shift' adverse impact, our days-adjusted comparable sales for the third quarter was a decrease of approximately 1.4%.  We continue to be pleased with the growth of our Internet sales, which increased 30% for the third quarter of fiscal 2012, on top of an 18% increase in the third quarter of fiscal 2011.

Destination Maternity Corporation


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 14th Aug 2020

Cambodia prepares to face upshot of partial EBA withdrawal

As the preferential treatment Cambodia enjoyed under the European...

Pic: USDA/FAS

Textiles | On 14th Aug 2020

India & Brazil push world cotton stocks to high level

World cotton stocks remain high as the Minimum Support Price (MSP) in ...

Pic: Shutterstock

Apparel/Garments | On 14th Aug 2020

Apparel production in Vietnam fell by 4.6% YoY in Jan-Jul

In the first seven months of this year, textile production in Vietnam ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Tech in fashion industry has hit acceleration button

Pratik Bachkaniwala, Palod Himson Machines

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Headhonchos, Indian fashion industry

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Tejas N Patel, Navin D Patel,

Tejas N Patel, Navin D Patel

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

Ritu Ajbani & Neha Agarwal,

Ritu Ajbani & Neha Agarwal

Petit Royal, co-founded by entrepreneurs <b>Ritu Ajbani and Neha...

Abhishek Ralli,

Abhishek Ralli

Guide group is a government recognised manufacturing house engaged in the...

Matthew Kolmes, Supreme Corporation

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

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

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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


August 2020

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


Advanced Search