Destination Maternity reports improving comparable sales trends for Q2
Destination Maternity announced its third straight quarter of improved comparable sales trend with its fiscal 2017 second quarter. The company noted that the improvement in trend reflects both the positive impact from its web re-platform and merchandising planning and allocation improvements. The company noted further that it expects to report improved Adjusted EBITDA before other charges for the quarter versus the second quarter of fiscal 2016 as a result of continued improvement in gross margin as well as reduced expenses. The company further expects a reduction in net debt at quarter end versus the fiscal 2016 second quarter. The company expects to provide full results for its second quarter fiscal 2017 on or before the week of September 10, 2017. Comparable sales decreased 3.4%, with a sequential improvement in each month of the quarter from negative 5.6% in May to negative 3.3% in June and negative 1.1% in July. Ecommerce sales, which are included in comparable sales, rose 30.2%, including an 18.2% increase in May; an increase of 29.2% in June; and an increase of 46.2% in July. Comparable sales represents sales from stores open at least one year plus ecommerce sales.