Destination Maternity (DEST) Q3 Sales Top Views
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Destination Maternity Corporation (Nasdaq: DEST), the world's leading maternity apparel retailer, today reported sales for the third quarter of fiscal 2013 ended June 30, 2013, and announced that it expects its third quarter fiscal 2013 earnings to be in the top half of its prior earnings guidance range and to significantly exceed last year's third quarter earnings.
Net sales for the third quarter of fiscal 2013 increased 2.2% to $141.9 million from $138.8 million reported for the third quarter of fiscal 2012. Comps were up 4.9 percent, or 5.3 percent on an adjusted basis.
*** The Street was looking for sales of $140.65 million.
The increase in total reported sales for the third quarter of fiscal 2013 compared to the third quarter of fiscal 2012 resulted primarily from the increase in comparable sales, partially offset by decreased sales related to the Company's continued efforts to close underperforming stores, and decreased sales due to the closure of all of the Company's remaining leased departments within Babies"R"Us® stores during the month of October 2012.
Net sales for the first nine months of fiscal 2013 decreased 0.2% to $412.0 million from $413.0 million reported for the first nine months of fiscal 2012.
The slight decrease in total reported sales for the first nine months of fiscal 2013 compared to the first nine months of fiscal 2012 resulted primarily from decreased sales related to the Company's continued efforts to close underperforming stores, and decreased sales due to the closure of all of the Company's remaining leased departments within Babies"R"Us stores during the month of October 2012, substantially offset by the increase in comparable sales.
Ed Krell, Chief Executive Officer of Destination Maternity, noted, "We are pleased with our continued positive comparable sales results and our strong earnings performance, with our expected earnings for the third quarter in the top half of our prior earnings guidance range. For the quarter, our sales were near the top end of our sales guidance range and we expect our diluted earnings per share for the third quarter to be in the top half of our prior earnings guidance range of $0.56 to $0.64 per share that we provided in our April 25, 2013 press release, reflecting a significant increase versus last year's third quarter diluted earnings of $0.52 per share. This represents our fourth consecutive quarter of achieving both a comparable sales increase and a significant increase in earnings over the prior year, showing the continued progress we have made with our sales initiatives, while maintaining strong operational and expense discipline.
"Our progress in improving our comparable sales results can be seen by our adjusted comparable sales increases of 5.3% for the third quarter and 3.9% for the first nine months of fiscal 2013, both adjusted for the calendar timing shift as described later in this press release.
"Our total sales of $141.9 million for the third quarter were near the top end of our sales guidance range of $138 to $142 million provided in our April 25 press release, primarily due to our reported comparable sales increase of 4.9%, which was near the top end of our guidance range for a comparable sales increase of between 2% and 5% for the quarter."
For the quarter ended June 30, 2013, the Company opened one multi-brand Destination Maternity nameplate store and closed eight stores, including one store closing related to a Destination Maternity nameplate store opening. For the nine months ended June 30, 2013, the Company opened 11 stores, seven of which were multi-brand Destination Maternity nameplate stores, including the Company's first two Destination Maternity nameplate stores in Canada, and closed 30 stores, including nine store closings related to Destination Maternity nameplate store openings. As of June 30, 2013, the Company operates 606 stores, 1,287 leased department locations and 1,893 total retail locations, compared to 636 stores, 1,380 leased department locations and 2,016 total retail locations operated as of June 30, 2012. In connection with the Company's new broad-based partnership with Bed Bath & Beyond Inc. and its subsidiary, Buy Buy Baby, Inc., the Company discontinued operation of its 124 remaining leased departments in Babies"R"Us stores in late October 2012 and began to open leased departments in select buybuy BABY® stores. According to Bed Bath & Beyond Inc.'s latest public disclosure, as of June 26, 2013 there are 84 buybuy BABY stores. As of June 30, 2013, the Company operates leased departments in 44 buybuy BABY stores, an increase from the 14 leased departments the Company operated in buybuy BABY stores as of March 31, 2013. Over time, the Company expects to continue to increase the number of buybuy BABY stores in which it has a maternity apparel leased department.
Net sales for the third quarter of fiscal 2013 increased 2.2% to $141.9 million from $138.8 million reported for the third quarter of fiscal 2012. Comps were up 4.9 percent, or 5.3 percent on an adjusted basis.
*** The Street was looking for sales of $140.65 million.
The increase in total reported sales for the third quarter of fiscal 2013 compared to the third quarter of fiscal 2012 resulted primarily from the increase in comparable sales, partially offset by decreased sales related to the Company's continued efforts to close underperforming stores, and decreased sales due to the closure of all of the Company's remaining leased departments within Babies"R"Us® stores during the month of October 2012.
Net sales for the first nine months of fiscal 2013 decreased 0.2% to $412.0 million from $413.0 million reported for the first nine months of fiscal 2012.
The slight decrease in total reported sales for the first nine months of fiscal 2013 compared to the first nine months of fiscal 2012 resulted primarily from decreased sales related to the Company's continued efforts to close underperforming stores, and decreased sales due to the closure of all of the Company's remaining leased departments within Babies"R"Us stores during the month of October 2012, substantially offset by the increase in comparable sales.
Ed Krell, Chief Executive Officer of Destination Maternity, noted, "We are pleased with our continued positive comparable sales results and our strong earnings performance, with our expected earnings for the third quarter in the top half of our prior earnings guidance range. For the quarter, our sales were near the top end of our sales guidance range and we expect our diluted earnings per share for the third quarter to be in the top half of our prior earnings guidance range of $0.56 to $0.64 per share that we provided in our April 25, 2013 press release, reflecting a significant increase versus last year's third quarter diluted earnings of $0.52 per share. This represents our fourth consecutive quarter of achieving both a comparable sales increase and a significant increase in earnings over the prior year, showing the continued progress we have made with our sales initiatives, while maintaining strong operational and expense discipline.
"Our progress in improving our comparable sales results can be seen by our adjusted comparable sales increases of 5.3% for the third quarter and 3.9% for the first nine months of fiscal 2013, both adjusted for the calendar timing shift as described later in this press release.
"Our total sales of $141.9 million for the third quarter were near the top end of our sales guidance range of $138 to $142 million provided in our April 25 press release, primarily due to our reported comparable sales increase of 4.9%, which was near the top end of our guidance range for a comparable sales increase of between 2% and 5% for the quarter."
For the quarter ended June 30, 2013, the Company opened one multi-brand Destination Maternity nameplate store and closed eight stores, including one store closing related to a Destination Maternity nameplate store opening. For the nine months ended June 30, 2013, the Company opened 11 stores, seven of which were multi-brand Destination Maternity nameplate stores, including the Company's first two Destination Maternity nameplate stores in Canada, and closed 30 stores, including nine store closings related to Destination Maternity nameplate store openings. As of June 30, 2013, the Company operates 606 stores, 1,287 leased department locations and 1,893 total retail locations, compared to 636 stores, 1,380 leased department locations and 2,016 total retail locations operated as of June 30, 2012. In connection with the Company's new broad-based partnership with Bed Bath & Beyond Inc. and its subsidiary, Buy Buy Baby, Inc., the Company discontinued operation of its 124 remaining leased departments in Babies"R"Us stores in late October 2012 and began to open leased departments in select buybuy BABY® stores. According to Bed Bath & Beyond Inc.'s latest public disclosure, as of June 26, 2013 there are 84 buybuy BABY stores. As of June 30, 2013, the Company operates leased departments in 44 buybuy BABY stores, an increase from the 14 leased departments the Company operated in buybuy BABY stores as of March 31, 2013. Over time, the Company expects to continue to increase the number of buybuy BABY stores in which it has a maternity apparel leased department.
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