- Prachi Singh |
Destination Maternity Corporation has reported 1.9 percent decrease in second quarter net sales to 96.4 million dollars, negatively impacted by the net closure of 27 retail stores, partially offset by an increase in comparable sales. Comparable sales for the second quarter increased 1.2 percent, compared to a decrease of 3.4 percent in the second quarter of fiscal 2017. Net sales for the first six months decreased 2.5 percent to 199.6 million dollars, while comparable sales increased 0.5 percent, compared to a decrease of 5.5 percent for the six months ended July 29, 2017.
“We continued to make progress in the second quarter executing against our strategic initiatives aimed at accelerating revenue growth, rationalizing expenses and improving profitability. With this momentum and our year to date results, we are reaffirming our full-year guidance of 30 percent to 45 percent growth in adjusted EBITDA, before other charges. We expect adjusted EBITDA, before other charges will more than double over last year’s second half,” said Marla Ryan, Chief Executive Officer of Destination Maternity in a statement.
Second quarter and H1 result highlights
Gross margin for the second quarter was 51.7 percent, a decrease of 123 basis points from the comparable prior year gross margin. Adjusted EBITDA before other charges was 4 million dollars, a decrease of 3.4 percent compared to 4.1 million dollars for the second quarter of fiscal 2017. Adjusted net loss was 1.6 million dollars or 0.11 dollar per diluted share compared to 1.8 million dollars or 0.13 dollar per diluted share.
Gross margin for the first six months was 52.7 percent, a decrease of 100 basis points from the comparable prior year gross margin. Adjusted EBITDA before other charges and change in accounting principle was 11.8 million dollars, an increase of 13.4 percent compared to 10.4 million dollars for the first six months of fiscal 2017. Adjusted net loss was 0.5 million dollars or 0.04 dollar per diluted share compared to 2.5 million dollars or 0.18 dollar per diluted share.
Picture:Destination Maternity website