Associated Press
Destination Maternity Corp. said Thursday that its March revenue at stores open at least a year fell 3 percent, more than Wall Street forecast, but it expects to report earnings for the current quarter "near the top end" of earlier predictions.
Analysts surveyed by Thomson Reuters on average expected the company to report a 2 percent drop in March sales at stores open at least a year.
The comparison is an important indicator of retailers' long-term financial health because it excludes stores that recently opened or closed.
In January, the company predicted earnings per share of 30 cents to 35.5 cents for its fiscal second quarter.
The company said it is benefiting from its February agreement to sell clothing at more Macy's locations, increasing from 115 stores to 631.
Destination Maternity also said it is benefiting from increased online sales. It is closing underperforming stores, including seven in March. That should help long-term earnings, though it hurts total revenue in the short term, the company said.
The March drop in revenue at stores open at least a year includes online sales. Without them, the figure fell 4 percent. Like other retailers, Destination Maternity said this year's late Easter crimped March sales, because it is expected to shift holiday shopping from March to April. Cold weather in March also hurt sales of spring clothing, the company said.
