Destination Maternity Q4 Net Rises; Issues FY14 Guidance - Quick Facts

(RTTNews) - Destination Maternity Corp. (DEST), a maternity apparel retailer, Thursday reported an increase in its fourth-quarter net income, that included a reduction of state income tax expense, net of federal expense, of $1.2 million, for the recognition of tax benefits resulting from recently enacted changes in certain state income tax regulations. The company also provided outlook for its fiscal 2014.

Destination Maternity reported net income of $5.6 million or $0.42 per share, compared with $5.2 million or $0.39 per share last year. Excluding the reduction of income tax expense, net income was $4.4 million or $0.33 per share, compared with $5.1 million or $0.39 per share last year.

Net sales for the three-month period were down 0.2 percent to $128.3 million, from prior year's $128.5 million. Analysts polled Thomson Reuters expected sales of $129.65 million. Comparable sales for the fourth quarter increased 1.4 percent, versus an increase of 2.7 percent last year. Adjusting for the calendar timing shift, the comparable sales rose 1.2 percent for the period.

For the first quarter of 2014, net sales are expected to be between $135 and $139 million. On a per share basis, earnings are expected to be between $0.29 and $0.34, and adjusted earnings between $0.31 and $0.36. Analysts expect the company to report first-quarter earnings of $0.35 per share.

For the full year 2014, the company expects net sales in the range of $545 million to $560 million, and comparable sales increase of 2 -5 percent. Earnings per share are expected in the range of $1.64 to $1.81, and adjusted earnings per share to range between $1.77 and $1.94. Analysts expect the company to report annual earnings of $1.92 per share, on revenues of $557.75 million.