Destination Maternity has ‘disappointing’ fourth quarter

A decrease in same-store sales and losses resulting from Destination Maternity’s continued efforts to close underperforming stores fueled a net sales decline in the fourth quarter — just two months after Anthony Romano came on board as CEO.



Net sales at Destination Maternity dropped 5% to $122 million in the fourth quarter of fiscal 2014, from $128.3 million the same quarter a year earlier. Same-store sales, including Internet sales, declined 5%. Sales results were below previously released guidance.



As a result of soft sales, higher-than-planned price promotional and markdown activity to manage inventory, and management and organizational changes initiated during the quarter, Destination Maternity anticipates a fourth-quarter loss of between $0.09 and $0.14 per share.



Net sales were also disappointing for the full fiscal year, declining 4% to $517 million from $540.3 million the prior fiscal year. Same-store sales, including Internet sales, fell 3.7%.



“We are obviously very disappointed in our performance during fiscal 2014,” said Anthony Romano, CEO of Destination Maternity. “Since joining Destination Maternity two months ago, I have invested my time learning about our business, our team and, most importantly, our customer. I see an opportunity for us at Destination Maternity to enhance our relationship with our customer through continuous improvement in both the product we offer to her, as well as her shopping experiences, online and in stores.”