MOORESTOWN, N.J., Aug. 9, 2017 /PRNewswire/ -- Destination
Maternity Corporation (NASDAQ: DEST), the world's leading maternity
apparel retailer, today announced its third straight quarter of
improved comparable sales trend with its fiscal 2017 second
quarter. The Company noted that the improvement in trend
reflects both the positive impact from its web re-platform and
merchandising planning and allocation improvements. The
Company noted further that it expects to report improved Adjusted
EBITDA before other charges for the quarter versus the second
quarter of fiscal 2016 as a result of continued improvement in
gross margin as well as reduced expenses. The Company further
expects a reduction in net debt at quarter end versus the fiscal
2016 second quarter. The Company expects to provide full
results for its second quarter fiscal 2017 on or before the week of
September 10, 2017.
Comparable Sales for the Second Quarter Fiscal 2017 (the
13-weeks ended July 29, 2017)
(compared to the Fiscal 2016 period):
- Comparable sales decreased 3.4%, with a sequential improvement
in each month of the quarter from negative 5.6% in May to negative
3.3% in June and negative 1.1% in July.
- Ecommerce sales, which are included in comparable sales, rose
30.2%, including an 18.2% increase in May; an increase of 29.2% in
June; and an increase of 46.2% in July.
- Comparable sales represents sales from stores open at least one
year plus ecommerce sales.
Anthony M. Romano, Chief
Executive Officer & President, stated: "We are encouraged by
the sequential improvement in our trend over the last three
quarters as well as month to month improvement in trend throughout
the second quarter. We are particularly excited by the very
positive performance of our recently re-launched ecommerce sites
which delivered comparable sales improvement of 30.2% for the
quarter, with a 46.2% improvement in July. Our websites,
which were redesigned with the millennial consumer in mind and a
"mobile first" focus, are on pace to beat our goal of 20%
penetration to our overall sales and are outperforming our
expectations to date. That said, given the ongoing difficult
retail environment we continue to study all areas of our business
with a view toward improvement in our profitability and
liquidity."
About Destination Maternity
Destination Maternity
Corporation is the world's largest designer and retailer of
maternity apparel. As of April 29,
2017 Destination Maternity operates 1,157 retail locations
in the United States, Canada and Puerto
Rico, including 511 stores, predominantly under the trade
names Motherhood Maternity®, A Pea in the Pod® and Destination
Maternity®, and 646 leased department locations. The Company also
sells merchandise on the web primarily through its brand-specific
websites, motherhood.com and apeainthepod.com, as well as through
its destinationmaternity.com website. Destination Maternity has
international store franchise and product supply relationships in
the Middle East, South Korea, Mexico, Israel and India. As of April 29,
2017 Destination Maternity has 219 international franchised
locations, including 19 standalone stores operated under one of the
Company's nameplates and 200 shop-in-shop locations.
Forward-Looking Statements
The Company cautions
that any forward-looking statements (as such term is defined in the
Private Securities Litigation Reform Act of 1995) contained in this
press release or made from time to time by management of the
Company, including those regarding comparable sales, other results
of operations, liquidity and financial condition, and various
business initiatives, involve risks and uncertainties, and are
subject to change based on various important factors. The following
factors, among others, in some cases have affected and in the
future could affect the Company's financial performance and actual
results and could cause actual results to differ materially from
those expressed or implied in any such forward-looking statements:
the strength or weakness of the retail industry in general and of
apparel purchases in particular, our ability to successfully manage
our various business initiatives, the success of our international
business and its expansion, our ability to successfully manage and
retain our leased department and international franchise
relationships and marketing partnerships, future sales trends in
our various sales channels, unusual weather patterns, changes in
consumer spending patterns, raw material price increases, overall
economic conditions and other factors affecting consumer
confidence, demographics and other macroeconomic factors that may
impact the level of spending for apparel (such as fluctuations in
pregnancy rates and birth rates), expense savings initiatives, our
ability to anticipate and respond to fashion trends and consumer
preferences, unanticipated fluctuations in our operating results,
the impact of competition and fluctuations in the price,
availability and quality of raw materials and contracted products,
availability of suitable store locations, continued availability of
capital and financing, our ability to hire, develop and retain
senior management and sales associates, our ability to develop and
source merchandise, our ability to receive production from foreign
sources on a timely basis, our compliance with applicable financial
and other covenants under our financing arrangements, potential
debt prepayments, the trading liquidity of our common stock,
changes in market interest rates, our compliance with certain tax
incentive and abatement programs, war or acts of terrorism and
other factors set forth in the Company's periodic filings with the
U.S. Securities and Exchange Commission (the "SEC"), or in
materials incorporated therein by reference.
Although it is believed that the expectations reflected in
such forward-looking statements are reasonable, no assurance can be
given that such expectations will prove to have been correct and
persons reading this announcement are therefore cautioned not to
place undue reliance on these forward-looking statements which
speak only as at the date of this announcement. The Company assumes
no obligation to update or revise the information contained in this
announcement (whether as a result of new information, future events
or otherwise), except as required by applicable law.
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SOURCE Destination Maternity Corporation