US: Destination Maternity sees Q1 profit rise
US maternity wear retailer Destination Maternity recorded a jump in first quarter net income, despite sales declining over the period.
The company said that net income increased 70% to US$3.8m over the quarter ended 31 December from $2.3m in the same period of the prior year. Net sales were down 0.8% to $135.3m, which it attributed to the group's continued efforts to close underperforming stores. Comparable sales increased 1.9%.
Destination maternity CEO Ed Krell said the results represent the company's "second consecutive quarter of achieving both a comparable sales increase and a significant increase in earnings over the prior year" which he added showed the progress it is making in its "sales-driving initiatives while maintaining strong operational and expense discipline".
"Our key focus continues to be improving our sales performance through initiatives to enhance our merchandise assortments, merchandise presentation, store environment and customer experience," said Krell.
"While we recognize the challenging macroeconomic environment, we remain focused on the things that we can control, not on external factors that we cannot control. During fiscal 2012, we made many changes to drive improvements in our merchandise assortments and the way these assortments are presented in store, and we are pleased with the improved sales trend we have seen in the fall and early spring product selling seasons as we progress during fiscal 2013. We are cautiously optimistic that we will continue to see the results of our efforts in an improved sales trend during the current year and beyond."
Destination Maternity has today (25 July) said it expects full-year earnings to be at the higher end of its original guidance after booking a 24% increase in third-quarter net profit....
- Garment manufacturers eye Myanmar outsourcing
- PSF 2014: Shifting focus from cost to consumer
- PSF 2014: No one size fits all in apparel sourcing
- Tesco takes second stab at US market with F&F
- Tesco FY results: What the analysts say
- Adidas China supplier in discussions over strike
- Bangladesh PM asks clothing buyers to pay more
- Jones CEO to depart as Sycamore splits business
- Workers strike at Adidas supplier shoe factory
- Bangladesh clothing exports to Japan to hit $1bn
- Ethiopia – the emerging textile and clothing industry
- Antimicrobial fibres, fabrics and apparel: innovative weapons against infection
- Trade and trade policy: clothing imports, consumer expenditure and trends in five emerging markets: Brazil, Colombia, India, Kazakhstan and Peru, 4th quarter 2013
- Jeans in Italy
- Sustainable Textiles for Apparel: Fact, Fiction and Future Prospects