Destination Maternity’s Q3 comparable sales improve 1.1 percent

Destination Maternity’s net sales were 96.4 million dollars for the third quarter compared with 102.6 million dollars for the comparable prior year quarter. The company said, decrease was driven by the closure of underperforming stores and exit of the Kohl's relationship, which was included in prior year results, partially offset by an increase in comparable sales. Comparable sales increased 1.1 percent compared to a 5.2 percent decline for the third quarter of fiscal 2016.

Commenting on the company’s performance, Allen Weinstein, interim Chief Executive Officer stated in a media release: "Although we are not fully satisfied with our financial results, the third quarter was a productive period for our company. We also have a strong foundation to build on in our e-commerce business, with e-commerce sales rising over 54 percent in the quarter and nearly 34 percent year to date, and with increased momentum in the fourth quarter to date bolstered by record online sales during the Thanksgiving through Cyber Monday period. As to stores, although not yet positive, in the fourth quarter to date we have seen our comparable store sales improve 190 basis points to down 6.4 percent."

Q3 GAAP net loss widens to 7.5 mn dollars

Gross margin for the quarter was 52.8 percent, down 10 basis points over the comparable prior year quarter gross margin of 52.9 percent. Adjusted EBITDA before other charges was 2 million dollars compared to 4.7 million dollars for the third quarter of fiscal 2016.

GAAP net loss was 7.5 million dollars or 0.55 dollar per diluted share, compared to net loss of 1.5 million dollars or 0.11 dollar per diluted share, for the third quarter of fiscal 2016. Adjusted net loss was 2.7 million dollars or 0.20 dollar per diluted share, compared to 1.2 million dollars or 0.09 dollar per diluted share, for the third quarter of fiscal 2016.

Net sales for the nine months were 301.1 million dollars compared with 333.5 million dollars for the same period ended October 29, 2016 driven by a decline in comparable sales, the closure of underperforming stores, and the wind down of the Kohl's, Sears and Gordmans relationships. Comparable sales decreased 3.5 percent, compared to a decrease of 4.5 percent for the nine months ended October 29, 2016.

Gross margin increased 50 basis points to 53.4 percent compared to 52.9 percent for the nine months ended October 29, 2016. Adjusted EBITDA before other charges and effect of change in accounting principle was 12.5 million dollars compared to 21.2 million dollars for the first nine months of fiscal 2016. GAAP net loss was 11.4 million dollars or 0.83 dollar per diluted share, compared to net income of 26,000 dollars for the nine months ended October 29, 2016. Adjusted net loss was 5.2 million dollars or 0.38 dollar per diluted share, compared to adjusted net income of 1.3 million dollars or 0.09 dollar per diluted share, for the nine months ended October 29, 2016.

Picture:Facebook/Motherhood Maternity