Destination Maternity Corporation said that net sales for the fourth quarter rose to 105.1 million dollars driven by an increase in comparable retail sales as well as additional sales generated in the 53rd week. Comparable sales for the quarter increased 5.2 percent. For the full fiscal year, net sales were 406.2 million dollars compared with 433.7 million dollars for the previous fiscal year, driven by the wind down of the Kohl's relationship, the net closure of 28 retail stores, and a 1.5 percent decline in comparable sales.

"Fiscal 2017 was a year of transition for the company. And, while there is much work to be done, our company has made meaningful strides in the past year. We relaunched our four ecommerce websites in early 2017 with an increase in comparable sales in the channel of over 40 percent, with much of that improvement driven by major conversion improvements on all devices, particularly mobile. We also completed a refinancing of our outstanding term loan to provide greater liquidity," said Melissa Payner-Gregor, the company’s interim Chief Executive Officer in a media release.

Review of the fourth quarter and full year results

Gross margin for the fourth quarter was 50.4 percent, down 60 basis points over the comparable prior year quarter gross margin of 51 percent. Adjusted EBITDA before other charges was 0.6 million dollars compared to 2.1 million dollars for the fourth quarter of fiscal 2016.

Gross margin for the full year increased 20 basis points to 52.6 percent compared to 52.4 percent last year driven by reduced product costs and the exit from the leased department and licensed relationships, which generated lower than average gross margins. Adjusted EBITDA before other charges was 13 million dollars compared to 23.3 million dollars in the previous fiscal.

GAAP net loss was 10.2 million dollars or 0.73 dollar per share compared to 32.8 million dollars or 2.39 dollar per share, for the fourth quarter of fiscal 2016. Adjusted net loss was 5 million dollars or 0.36 dollar per share, compared to 3.2 million dollars or 0.23 dollar per share for the fourth quarter last year.

GAAP net loss for the year was 21.6 million dollars or 1.57 dollars per share compared to 32.8 million dollars or 2.39 dollars per share. Adjusted net loss reached 10.2 million dollars or 0.74 dollar per share, compared to 1.9 million dollars or 0.14 dollar per share, for the fiscal year ended January 28, 2017.

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