Destination Maternity Q4 comparable sales drop 7.8 percent

Destination Maternity Corporation’s fourth quarter comparable sales decreased 7.8 percent following a 3.5 percent decline for the fourth quarter of fiscal 2015. Pretax loss was 7.8 million dollars, compared to 5 million dollars in the same quarter of fiscal 2015. Comparable sales decreased 5.3 percent for the full year, compared to a decrease of 1.5 percent for the fiscal year ended January 30, 2016.

Commenting on the annual trading, Anthony M. Romano, Chief Executive Officer & President, stated in a media release, "In a challenging year that saw several headwinds pressure sales, we achieved increased adjusted EBITDA before other charges reflecting improvement in gross profit margin and a reduction in expenses. While the year included several headwinds, including business exits from Sears and Gordmans, certain Macy's store closures, Kohl's business wind down, mall traffic declines, and cancelled fourth quarter orders due to the Hanjin bankruptcy, we continued to advance our key strategies."

Fourth quarter net sales declined to 100.2 mn dollars

Net sales were 100.2 million dollars compared with 118.3 million dollars for the comparable prior year quarter. The company said, this decrease was primarily driven by the wind down of the Kohl's, Sears and Gordmans relationships and by a decline in comparable sales.

Gross margin was 51 percent, up 120 basis points over the comparable prior year quarter gross margin of 49.8 percent. Adjusted EBITDA before other charges was 2.1 million dollars compared to 3.2 million dollars for the fourth quarter of fiscal 2015. GAAP net loss was 32.8 million dollars or 2.39 dollars per share and included the 27.8 million dollars non-cash income tax charge, or 2.02 dollars per share, related to the valuation allowance against net deferred tax assets. This compared to a GAAP net loss of 3.1 million dollars or 0.22 dollar per share, for the fourth quarter of fiscal 2015.

Adjusted net loss was 3.2 million dollars or 0.23 dollars per share, compared to 1.5 million dollars or 0.11 dollar per share, for the fourth quarter of fiscal 2015.

FY16 net sales were down to 433.7 mn dollars

Net sales were 433.7 million dollars compared with 498.8 million dollars for the fiscal year ended January 30, 2016. The decrease in sales, the company said, was primarily driven by the wind down of the Kohl's, Sears and Gordmans relationships, and by a decline in comparable sales.

Gross margin increased 310 basis points to 52.4 percent compared to 49.3 percent for the fiscal year ended January 30, 2016. Adjusted EBITDA before other charges was 23.3 million dollars compared to 22.8 million dollars for the fiscal year ended January 30, 2016. GAAP net loss was 32.8 million dollars or 2.39 dollars per share, and included the 27.8 million dollars non-cash income tax charge, or 2.02 dollars per share, related to the valuation allowance against net deferred tax assets. This compared to a GAAP net loss of 4.5 million dollars or 0.33 dollar per share, for the fiscal year ended January 30, 2016.

Adjusted net loss was 1.9 million dollars or 0.14 dollar per share, compared to adjusted net loss of 0.2 million dollars or 0.01 dollar per share, for the fiscal year ended January 30, 2016.

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