Destination Maternity Tightens Q1 Earnings Guidance

(RTTNews) - Destination Maternity Corp. (DEST), a maternity apparel retailer, Thursday announced a tightening of its earnings outlook for the first quarter, as sales were weaker than expected.

Destination Maternity now expects first quarter earnings per share of $0.30 to $0.31. This compares with the company's prior guidance of $0.29-$0.34.

Excluding charges related to relocation of headquarters and distribution facilities, earnings are now expected to be $0.32 to $0.33. The company's prior guidance for adjusted earnings was $0.31 to $0.36. On average, three analysts polled by Thomson-Reuters estimate the company's earnings to be $0.34 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the 3-month period declined to $134.8 million from $135.3 million a year ago. Analysts estimated sales to be $138.75 million. The company said that sales for the quarter fell as more underperforming stores were closed. This was offset by an increase of 0.7 percent in comparable sales.

Wednesday, the stock closed at $29.86 on the Nasdaq.