Sluggish sales trend at Destination Maternity

|About: Destination Maternity Cor... (DEST)|By:, SA News Editor

Destination Maternity (NASDAQ:DEST) posts Q3 numbers reflective of the retailer's efforts to "right-size" the organization and rationalize expenses.

"Our brick and mortar sales remain sluggish as we continue to shutter unprofitable stores and aggressively manage our long-term inventory position through increased markdowns and promotional activity," notes CEo Marla Ryan.

Total sales were down 3.7% and comparable sales were off 2.6% during the quarter. Total e-commerce revenue was flat during the quarter, but e-commerce product margins improved by 230 bps Y/Y.

Gross margin fell 40 bps to 52.4% of sales. SG&A expenses were 52.2% of sales vs. 54.4% a year ago.

Previously: Destination Maternity reports Q3 results (Dec. 11)

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