PHILADELPHIA, Feb. 7 /PRNewswire-FirstCall/ -- Mothers Work, Inc.
(Nasdaq: MWRK), the world's leading maternity apparel retailer, today
announced that net sales for the month of January 2008 decreased 5.2% to
$38.7 million from $40.8 million reported for the month of January 2007.
The decrease in sales versus last year resulted primarily from a decrease
in comparable store sales as well as a decrease in sales from the Company's
licensed arrangement. Comparable store sales for January 2008 decreased
2.1% (based on 1,405 locations) versus a comparable store sales decrease of
6.0% (based on 1,464 locations) for January 2007. During January 2008, the
Company opened two stores and closed 11 stores, including one store closing
related to a prior period multi-brand store opening. As of the end of
January 2008, the Company operates 763 stores, 771 leased department
locations and 1,534 total retail locations, compared to 798 stores, 784
leased department locations and 1,582 total retail locations operated at
the end of January 2007.
Rebecca Matthias, President and Chief Creative Officer of Mothers Work,
noted, "Our sales trend for January improved significantly compared to our
December comparable store sales decline of 7.6%. Our sales were somewhat
weaker in the second half of January compared to the first half of the
month, which resulted in our comparable store sales decrease of 2.1% for
the month of January coming in somewhat below our updated guidance range
for January comparable store sales of down 1% to up 1% that we provided in
our January 24, 2008 press release. We are pleased, though, that after
experiencing this weaker than expected sales in the latter part of January,
we have seen an improvement in our sales trend thus far in February. Our
sales for January continued to reflect a very difficult overall economic
and retail environment, as well as some continued negative impact from the
popularity of certain styles in the non-maternity women's apparel market
which can more readily fit a pregnant woman early in her pregnancy than
typical non-maternity fashions.
"Looking forward, we continue to feel very good about our product
lines, our inventory position and our overall business; however, we
recognize that we continue to be faced with a weak overall economic and
retail environment and are still seeing some negative impact from the more
pregnancy-friendly fit of certain non-maternity fashion trends, such as
trapeze and baby-doll dresses and tops. Importantly, though, we expect this
fashion trend to diminish as we move into the Spring 2008 selling season,
thus helping our sales trend over the next several months. We also expect
to see our sales trend continue to improve as we experience more seasonal
temperatures compared to a year ago, begin to anniversary weaker sales
results from a year ago, and continue to refine our merchandise assortments
and our in-store merchandise presentation. We continue to focus on
developing great maternity product under each of our brands and on
improving our sales and profitability performance, including continuing to
roll out our multi-brand stores."
Mothers Work is the world's largest designer and retailer of maternity
apparel, using its custom TrendTrack(TM) merchandise analysis and planning
system as well as its quick response replenishment process to "give the
customer what she wants, when she wants it." As of January 31, 2008,
Mothers Work operates 1,534 maternity locations, including 763 stores,
predominantly under the tradenames Motherhood Maternity(R), A Pea in the
Pod(R), Mimi Maternity(R), and Destination Maternity(R), and sells on the
web through its DestinationMaternity.com and brand-specific websites. In
addition, Mothers Work distributes its Oh Baby by Motherhood(TM) collection
through a licensed arrangement at Kohl's(R) stores throughout the United
States and on Kohls.com.
The Company cautions that any forward-looking statements (as such term
is defined in the Private Securities Litigation Reform Act of 1995)
contained in this press release or made from time to time by management of
the Company, including those regarding expected results of operations,
liquidity and financial condition and various business initiatives, involve
risks and uncertainties, and are subject to change based on various
important factors. The following factors, among others, in some cases have
affected and in the future could affect the Company's financial performance
and actual results and could cause actual results to differ materially from
those expressed or implied in any such forward-looking statements: our
ability to successfully manage our various business initiatives, our
ability to successfully manage and retain our leased department and
licensed relationships and marketing partnerships, future sales trends in
our existing store base, weather, changes in consumer spending patterns,
raw material price increases, consumer preferences and overall economic
conditions, the impact of competition and pricing, availability of suitable
store locations, continued availability of capital and financing, ability
to hire and develop senior management and sales associates, ability to
develop and source merchandise, ability to receive production from foreign
sources on a timely basis, potential stock repurchases, potential debt
prepayments, changes in market interest rates, war or acts of terrorism,
and other factors set forth in the Company's periodic filings with the
Securities and Exchange Commission, or in materials incorporated therein by
reference.
Mothers Work press releases available through Company News On-Call at
http://www.prnewswire.com/comp/581877.html
SOURCE Mothers Work, Inc.
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Related links:
http://www.motherswork.com
CONTACT:
Edward M. Krell, Chief Operating Officer &
Chief Financial Officer, +1-215-873-2220
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