Destination Maternity (DEST) Misses Q4 EPS by 10c
Destination Maternity (NASDAQ: DEST) reported Q4 EPS of ($0.18), $0.10 worse than the analyst estimate of ($0.08). Revenue for the quarter came in at $122 million versus the consensus estimate of $133.5 million..
Comparable sales for fiscal 2014 decreased 3.7% compared to an increase of 2.6% for fiscal 2013. Adjusting for the calendar shift, the Company's calendar-adjusted comparable sales decreased 3.7% for fiscal 2014 and increased 3.2% for fiscal 2013.
Anthony M. Romano, Chief Executive Officer of Destination Maternity Corporation, said, "We are disappointed in our performance for both the quarter and full year. Like most of retail during our fourth quarter, we struggled with the macro-economic environment and traffic was challenging. Although several categories performed well, we believe our product offering did not consistently match what our customers wanted, particularly the millennial moms-to-be, who represent a growing share of today's market. Therefore, we are working to aggressively manage our inventory and become more customer-focused and product-centric. It is our goal to provide a shopping experience, not available anywhere else, with fashion-right products to help our customer celebrate this amazing time in her life. I am optimistic about the long-term value of, and opportunities for, Destination Maternity Corporation."
The Company is changing its fiscal year end from September 30 to the Saturday nearest January 31 of each year. The fiscal year end change will align the Company's reporting cycle with the National Retail Federation fiscal calendar. The change will be effective with the Company's fiscal year 2015, which will begin February 1, 2015 and end January 30, 2016, and will result in a four-month transition period beginning October 1, 2014 and ending January 31, 2015.
Mr. Romano noted, "We are changing our fiscal year to align with the traditional 4-5-4 retail calendar ending with January. Making this change will help us make smarter, more consistent product decisions, plan more thoughtfully our marketing and promotional activities, and reduce the learning curve for new experienced retail hires. Shifting to the retail calendar will impact almost every facet of our business positively."
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