Earnings Roundup: Destination Maternity Corporation (NASDAQ: DEST)

On Tuesday, Shares of Destination Maternity Corporation (NASDAQ: DEST) gained 0.38% to $5.32. The stock opened its trade at $5.30 and after floating in a price range of $5.15 to $5.67; the stock grabbed the investor’s attention and traded 95,055 shares as compared to its average daily volume of 70.74K shares. The stock’s institutional ownership stands at 41.30%.

Destination Maternity Corporation (DEST), the world’s leading maternity apparel retailer, recently declared financial results for the second quarter and first six months of fiscal 2018 ended August 4, 2018 contrast to the second quarter and first six months of fiscal 2017 ended July 29, 2017.

Second Quarter Fiscal 2018 Financial Results:

  • Net sales for the second quarter of fiscal 2018 reduced 1.9% to $96.40M from $98.30M for the second quarter of fiscal 2017. Sales were negatively influenced by the net closure of 27 retail stores, partially offset by a boost in comparable sales. Comparable sales for the second quarter of fiscal 2018 increased 1.2%, contrast to a decrease of 3.4% in the second quarter of fiscal 2017. Gross margin for the second quarter of fiscal 2018 was 51.7%, a decrease of 123 basis points from the comparable prior year gross margin.
  • Selling, general and administrative expenses (“SG&A”) for the second quarter of fiscal 2018 reduced 5.1% to $50.10M. As a percentage of net sales, SG&A reduced 176 basis points to 52.0%.
  • Adjusted EBITDA before other charges was $4.00M for the second quarter of fiscal 2018, a decrease of 3.4% contrast to $4.10M for the second quarter of fiscal 2017.
  • Adjusted net loss for the second quarter of fiscal 2018 was $1.60M, or $0.11 per share (diluted), contrast to the comparably adjusted net loss for the second quarter of fiscal 2017 of $1.80M, or $0.13 per share (diluted).

First Six Months of Fiscal 2018 Financial Results (26 weeks ended August 4, 2018):

  • Net sales for the first six months reduced 2.5% to $199.60M from $204.70M for the comparable period in fiscal 2017. Comparable sales for the first six months of fiscal 2018 increased 0.5%, contrast to a decrease of 5.5% for the six months ended July 29, 2017. Gross margin for the first six months of fiscal 2018 was 52.7%, a decrease of 100 basis points from the comparable prior year gross margin.
  • Selling, general and administrative expenses (“SG&A”) for the first six months of fiscal 2018 reduced 6.0% to $101.90M. As a percentage of net sales, SG&A reduced 191 basis points to 51.1%.
  • Adjusted EBITDA before other charges and change in accounting principle was $11.80M for the first six months of fiscal 2018, a boost of 13.4% contrast to $10.40M for the first six months of fiscal 2017.
  • Adjusted net loss for the first six months of fiscal 2018 was $0.50M, or $0.04 per share (diluted), contrast to the comparably adjusted net loss for the first six months of fiscal 2017 of $2.50M, or $0.18 per share (diluted).

Other Financial Information:

  • Capital expenditures in the second quarter totaled $1.40M mainly driven by minor investments in stores and investments to support key systems projects.
  • At August 4, 2018, inventory was $67.80M, a decrease of $2.00M contrast to $69.80M at July 29, 2017.

DEST has a market value of $77.51M while its EPS was booked as $-0.82 in the last 12 months. The stock has 14.57M shares outstanding. In the profitability analysis, the company has gross profit margin of 52.10% while net profit margin was -5.40%. Beta value of the company was -0.64; beta is used to measure riskiness of the security.

Chad Pitman

Chad Pitman

I am Chad Pitman and I focus on breaking news stories and ensuring we (“Stocks Market Cap”) offer timely reporting on some of the most recent stories released through market wires about “Emerging Stocks”. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for stocksmarketcap.com specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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