Shares of Destination Maternity Corp. rose almost 55 percent in the two days after the maternity apparel retailer reported a second-quarter loss that was far lower than expected and raised its full-year guidance.
For the period ended March 31, the Philadelphia-based firm recorded a net loss of $1.9 million, or 32 cents a diluted share, compared with a net loss of $390,000, or 7 cents a share, in the year-ago quarter. Stripping out a goodwill charge of $3.4 million, the company’s net income totaled $1.5 million, or 25 cents a share. In January, the retailer forecasted a loss of between 22 and 35 cents a share, excluding charges.
The closure of its remaining leased departments in Sears stores in June contributed to a 6.4 percent drop in sales, to $130.1 million from more than $139 million in last year’s quarter. Comparable-store sales shrank 2.8 percent, while gross margin rose to 53.7 percent of sales, up from 50.1 percent a year ago.
“Looking forward, we feel very good about our product line and the actions we are taking to streamline our business and to position us to improve our profitability both in the near term and the long term,” said chief executive officer Ed Krell in the company earnings call.
In the half, the firm registered a net loss of $48.8 million, or $8.17 a share, versus a loss of $742,000, or 13 cents a share, a year earlier. Sales slid 6 percent to $264.9 million from $281.9 million and comps fell 1.5 percent.
Next quarter, the company said it expects earnings per share of between 74 and 91 cents, with comps declining 2.5 percent. For the year, Destination Maternity anticipates earnings, excluding goodwill charges, of between 80 cents and $1.10, versus earlier projections of EPS of 20 to 60 cents with comps down between 2 and 3.5 percent.
On Thursday, shares closed at $10.74, up 7.1 percent, following a 44.7 percent ascent from an opening price of $6.93 on Wednesday.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast