Destination Maternity sales disappoint in Q4

Philadelphia – Net sales at Destination Maternity Corp. 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%.



Net sales declined primarily from the decrease in same-store sales and decreased sales related to the company's continued efforts to close underperforming stores. Sales results were below previously released guidance.



As a result of the sales shortfall, higher than planned price promotional and markdown activity to manage inventory, and management and organizational changes initiated during the quarter, Destination Maternity expects a loss for the fourth quarter 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.”