Q2FY17 GAAP net loss falls 6.5% at Destination Maternity

GAAP net loss for the three months ended July 30, 2016 at Destination Maternity fell 6.5 per cent year on year to $2.5 million, or $0.18 loss per diluted share. Adjusted net loss was $2.0 million or $0.14 per diluted share for the reporting quarter as against $1.7 million, or $0.12 loss per diluted share for the prior fiscal’s same quarter.

Net sales for the second quarter of fiscal 2017 too were down to $106.5 million compared with $119.3 million for the corresponding quarter of earlier fiscal.

“The decline was mainly driven by closure of Sears and Gordmans leased department locations, as well as reductions in Kohl's sales given the planned exit in 2017, and by a decline in comparable sales,” the company said.

Comparable sales dropped 2.7 per cent for the quarter under review, compared to a 2.0 per cent increase in the second quarter of fiscal 2016.

Gross margin for the reporting quarter stood at 51.5 per cent, up a steep 510 basis points over 46.4 per cent the retailer posted in the previous fiscal’s second quarter.