Mothers Work Inc reports lowers sales

11 Jul '08
6 min read

Mothers Work Inc the world's leading maternity apparel retailer, announced that net sales for the month of June 2008 decreased 2.1% to $45.9 million from $46.9 million reported for the month of June 2007.

The Company's comparable store sales for June 2008 increased 0.8%, which was unfavorably impacted by approximately 4 percentage points due to having one less Friday and Saturday in June 2008 compared to June 2007.

The Company also announced that it projects that its diluted earnings per share for the third quarter (ended June 30, 2008) will be between $0.66 and $0.70 per share, within the guidance range for diluted earnings per common share of between $0.61 and $0.76 per share provided in its April 23, 2008 press release.

The 2.1% decrease in sales versus last year for the month of June resulted primarily from a decrease in Sears leased department sales, due to the closure of all of the Company's leased departments within Sears stores during the month of June, partially offset by increases in internet sales and comparable store sales.

Comparable store sales for June 2008 increased 0.8% (based on 994 locations) versus a comparable store sales decrease of 5.4% (based on 1,401 locations) for June 2007.

The comparable store sales increase of 0.8% for June 2008 was unfavorably impacted by approximately 4 percentage points due to having one less Friday and Saturday in June 2008 compared to June 2007.

The Company's comparable store sales increase of 4.3% for May 2008 was favorably impacted by approximately 4 percentage points due to having one more Friday and Saturday in May 2008 compared to May 2007.

The Company believes that its comparable store sales for the months of May and June 2008 combined, which increased approximately 2.7% versus the months of May and June 2007 combined, gives a more meaningful view of the Company's sales performance than sales results for either month alone, since the results for the two months combined reflect the same number of Fridays and Saturdays versus last year.

The comparable store sales decrease of 5.4% for June 2007 was favorably impacted by approximately 2 to 3 percentage points due to having five Saturdays in June 2007 compared to four Saturdays in June 2006.

During June 2008, the Company opened one store, closed no stores and closed its remaining 477 leased departments within Sears stores.

As of the end of June 2008, the Company operates 761 stores, 294 leased department locations and 1,055 total retail locations, compared to 787 stores, 812 leased department locations and 1,599 total retail locations operated at the end of June 2007.

The decrease in leased department locations at the end of June 2008 versus the end of June 2007 reflects the closure of the remaining leased departments within Sears stores during the month of June 2008, as compared to the 516 Sears leased departments operated by the Company atthe end of June 2007.

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