- Prachi Singh |
Destination Maternity’s comparable sales for the second quarter decreased 3.4 percent, with a sequential improvement in each month of the quarter from negative 5.6 percent in May to negative 3.3 percent in June and negative 1.1 percent in July. The company said that the improvement in trend reflects both the positive impact from its web re-platform and merchandising planning and allocation improvements.
Commenting on the Q2 development, Anthony M. Romano, the company’s Chief Executive Officer & President, stated: "We are encouraged by the sequential improvement in our trend over the last three quarters as well as month to month improvement in trend throughout the second quarter. That said, given the ongoing difficult retail environment we continue to study all areas of our business with a view toward improvement in our profitability and liquidity."
Ecommerce sales, which are included in comparable sales, rose 30.2 percent, including an 18.2percent increase in May; an increase of 29.2percent in June; and an increase of 46.2 percent in July.
The company expects to report improved adjusted EBITDA before other charges for the quarter, as a result of continued improvement in gross margin as well as reduced expenses and a reduction in net debt at quarter end versus the fiscal 2016 second quarter.
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