Destination Maternity Q2 Earnings Down, In Line With View; Updates FY Outlook

(RTTNews) - Destination Maternity Corp.( DEST), a maternity apparel retailer, Thursday reported lower earnings for the second quarter reflecting decline in sales growth as well as certain charges. The company's net income for the quarter dropped to $3.2 million or $0.24 per share from $5.9 million or $0.44 per share during the year-ago period. Excluding charges of $0.02 per share related to relocation of company's headquarters and distribution centers, earnings were $0.26 per share. Analyst polled by Thomson Reuters expected earnings per share of $0.26 per share for the quarter. Analysts' estimates typically exclude one-time items. The decrease in comparable sales coupled with the lower sales related to the company's continued efforts to close underperforming stores, resulted in a decline of second-quarter sales, which dropped 6.5 percent to $126.1 million from $134.9 million during the prior-year period.Analysts estimated revenues of $ 126.10 million for the quarter. Comparable sales for the quarter was down 5.1 percent versus a comparable sales growth of 1.6 percent, last year.

For the third quarter of fiscal 2014, the firm expects earnings per share between $0.53 and $0.62.On an adjusted basis the company expects earnings between $0.56 and $0.65 per share.Analysts estimates earnings per share of $0.67 for the third quarter.Net sales for the third quarter is anticipated in the $138 to $142 million range.

For the full-year 2014, the company now expects net sales in the $528 to $535 million range,compared with the previous view of $545 million to $560 million. Earnings per share is expected between $1.53 and $1.66 versus the previous guidance of $1.64 to $1.81.On an adjusted basis, the company now projects earnings per share between $1.49 and $1.62 while the previous range was $1.77 - $1.94. Analysts forecasts earnings of $1.70 per share and revenues of $539.40 million for the full year. In addition, the board declared a regular quarterly cash dividend of $0.20 per share, payable on June 27 to shareholders of record on June 6.