Destination Maternity Posts Wider Q2 Adj. Loss; To Review Alternatives

(RTTNews) - Destination Maternity Corp. (DEST), a maternity apparel retailer, reported that its second-quarter sales were down 11.9 percent year-over-year. The company's Board has engaged Greenhill & Co to commence a comprehensive review of strategic alternatives. As a result, the company is withdrawing its adjusted EBITDA guidance for the remainder of 2019. Shares of Destination Maternity were down more than 6 percent in pre-market trade on Tuesday.

For the second-quarter, adjusted net loss was $2.8 million, or $0.20 per share, compared to an adjusted net loss of $1.6 million, or $0.11 per share, previous year. Adjusted EBITDA before other charges and effect of change in accounting principle decreased to $2.0 million from $4.0 million.

Second-quarter net sales declined to $84.9 million from $96.4 million, a year ago. Sales were negatively impacted by the net closure of 6 owned locations and 55 leased lease locations as well as a decrease in comparable sales. Comparable sales decreased 10.5 percent. The company said the decrease was attributable to an 11.9 percent decrease in comparable store sales and a 6.4 percent decrease in ecommerce sales.