Destination Maternity Q1 net sales drop 3 percent

Destination Maternity Corporation has said net sales for the first quarter of fiscal 2018 decreased 3 percent to 103.2 million dollars from 106.4 million dollars for the first quarter of fiscal 2017, which included 0.8 million dollars related to a change in the method of accounting for gift card breakage. Comparable sales for the quarter decreased 0.1 percent.

“Our financial performance in the first quarter was in line with expectations, highlighted by reductions in SG&A, double digit growth in our e-commerce channel and increases in operating income. Since taking the helm as CEO, I have been working closely with our employees to implement a comprehensive and attainable business plan geared toward accelerating revenue growth, rationalizing expenses and improving profitability,” said Marla Ryan, Chief Executive Officer of Destination Maternity.

Gross margin for the first quarter was 53.7 percent, a decrease of 70 basis points from the comparable prior year gross margin. Adjusted EBITDA before other charges was 7.9 million dollars, an increase of 24.2 percent compared to 6.3 million dollars for the first quarter of fiscal 2017. Net income was 0.2 million dollars or 0.02 dollar per diluted share compared to a net loss of 1.1 million dollars or 0.08 dollars per diluted share, for the first quarter of fiscal 2017. Adjusted net income was 1 million dollars or 0.07 dollar per diluted share compared to the comparably adjusted net loss for the first quarter of fiscal 2017 of 0.7 million dollars or 0.05 dollar per diluted share.

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