Destination Maternity (DEST) Reports Q2 Loss of $0.14; Updates FY16 Outlook
Destination Maternity (NASDAQ: DEST) reported Q2 EPS of ($0.14), versus ($0.12) reported last year. Revenue for the quarter came in at $106.5 million, versus $119.3 million reported last year.
Comparable sales decreased 2.7%, compared to a 2.0% increase for the second quarter of fiscal 2016.
The Company updated its financial guidance for fiscal 2016 as follows:
- Continued sequential improvement in comparable sales through the year, resulting in slightly negative comparable sales for the full fiscal year;
- Gross margin to increase approximately 250 to 350 basis points year-over-year, as inventory productivity initiatives continue to generate more profitable sales;
- SG&A dollars will continue to decline, but will deleverage as a percent of sales on a full year basis;
- Capital expenditures are projected to be in the $15 million to $17 million range, a reduction of $12 million to $14 million compared to last year. Excluding the prior year capital expenditures related to the relocation of our corporate headquarters and distribution center, current year projected capital expenditures are $3 million to $5 million below last year. Current year spend is primarily the result of modest store investments, as we optimize our real estate portfolio, as well as investments in systems. The investments in systems mostly relate to our new inventory management approach as well as our web replatform, and represent a measured and revenue-focused approach to capital expenditures that we will look to continue as we move forward;
- The Company plans to open 10 new stores and close 30 to 35 stores during the fiscal year.
For earnings history and earnings-related data on Destination Maternity (DEST) click here.