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By
Fibre2Fashion
Published
Dec 12, 2017
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Destination Maternity e-commerce sales rise 54%

By
Fibre2Fashion
Published
Dec 12, 2017

For the third quarter ending October 28, e-commerce sales at Destination Maternity increased 54.3 per cent from the prior year, according to a release from the US maternity wear firm. Meanwhile, the company's net sales fell to $96.4 million compared with $102.6 million for the prior year.



The decrease in the sales was driven by the closure of underperforming stores and exit of the Kohl's relationship, which was included in prior year results, partially offset by an increase in comparable sales. The latter increased 1.1 per cent, compared to a 5.2 per cent decline for the third quarter of fiscal 2016.

For the nine months ended October 28, net sales were $301.1 million compared with $333.5 million. The decrease in sales was primarily driven by a decline in comparable sales, the closure of underperforming stores, and the wind down of the Kohl's, Sears and Gordmans relationships, said the company. Comparable sales decreased 3.5 per cent, compared to a decrease of 4.5 per cent last year.

"Although we are not fully satisfied with our financial results, the third quarter was a productive period for our company.  After my initial few months of observations, I feel confident that we have many opportunities to improve our operations and performance, with the benefit of a strong and talented team and a solid infrastructure on which to grow. We also have a strong foundation to build on in our e-commerce business, with e-commerce sales rising over 54 per cent in the quarter and nearly 34 per cent year to date, and with increased momentum in the fourth quarter to date bolstered by record online sales," Allen Weinstein, interim chief executive officer said.

"We also remain on track to achieve the approximately $10 million in annualised cost savings commencing in fiscal 2018 as we announced earlier in the quarter.  In short, although we have much to do, we are moving in the right direction," Weinstein concluded. 

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