Maternity lingerie online retailer reports revenue drop
Destination Maternity, a popular maternity lingerie online and retailer store, reported late last week that its revenues dropped a little above ten percent for the month of June due to slower sales. Despite this development, the company is still expecting higher third quarter earnings as estimated.
The shares of the Philadelphia-based company also closed three percent higher despite the slightly disappointing news.
Net sales dropped to $41.3 million from $45.9 million from the same period last year. As expected, company CEO Ed Krell said that the decline on the sales of maternity lingerie and other underwear were due to the weak economy. Aside from that, Krell said that the changing weather (cool and wet) resulted to the decline in sales of summer clothing. This led for the company to decide to limit its promotions to control its inventory.
Krell revealed that the company has come up with measures to resolve the weak sales. The company’s 3rd quarter profit rose with each share costing 91 cents from 74 cents.
Destination Maternity handles Motherhood Maternity, A Pea in the Pod and Destination Maternity. It’s Oh Baby by Motherhood brand was sold to Kohl’s.
