• Net sales down 0.3% to US$142m
  • Net profit rises 28% to $8.7m
  • Hails cost reduction programme

 

Destination Maternity Corporation overcame a slight decline in third quarter sales to post a much-improved profit of US$8.7m, driven by its cost reduction programme.

A decrease in comparable store sales was largely offset by the relaunch of the Two Hearts maternity collection in Sears and Kmart last October, the company said.

“We are very pleased with the progress we are making in continuing to improve the profitability of our business, even in the face of a continued challenging sales environment,” said Ed Krell, Destination Maternity CEO.

“Our improved earnings performance is driven primarily by the expense savings from our cost reduction initiatives and our strong merchandise gross margin performance, as well as from the growth in sales of our leased department relationships and increased internet and international sales.”