PHILADELPHIA, May 8 /PRNewswire-FirstCall/ -- Mothers Work, Inc.
(Nasdaq: MWRK), the world's leading maternity apparel retailer, today
announced that net sales for the month of April 2008 decreased 0.3% to
$52.2 million from $52.3 million reported for the month of April 2007. The
slight decrease in sales versus last year resulted primarily from a
decrease in Sears(R) leased department sales and reduced sales volume from
the ongoing closure of certain underperforming stores, substantially offset
by an increase in comparable store sales. Comparable store sales for April
2008 increased 2.3% (based on 995 locations) versus a comparable store
sales decrease of 14.8% (based on 1,412 locations) for April 2007. The
comparable store sales increase of 2.3% for April 2008 was towards the high
end of the Company's guidance range for April comparable store sales of
down 1% to up 3%, which the Company provided in its April 23, 2008 press
release. As previously announced, since the Company's leased departments
within Sears stores will close before the end of the third quarter, the
Company's Sears leased departments are not being included in the Company's
comparable store sales results beginning in April, the first month of the
Company's third quarter. As of April 30, 2008, the Company operates 477
Sears leased departments, which will all close before the end of June 2008.
As of April 30, 2007, the Company operated 524 Sears leased departments.
The comparable store sales increase of 2.3% for April 2008 was
unfavorably impacted by approximately 2 to 3 percentage points due to the
earlier timing of Easter compared to last year (March 23, 2008 compared to
April 8, 2007) and due to having four Sundays in April 2008 compared to
five Sundays in April 2007. The comparable store sales decrease of 14.8%
for April 2007 was unfavorably impacted by approximately 4 to 5 percentage
points due to having four Saturdays in April 2007 compared to five
Saturdays in April 2006, as well as the earlier timing of Easter in 2007
compared to 2006 (April 8, 2007 compared to April 16, 2006). During April
2008, the Company opened two stores, including its 16th Destination
Maternity(R) Superstore, and closed ten stores, including six store
closings related to Destination Maternity stores opening during April and
May of 2008. As of the end of April 2008, the Company operates 758 stores,
771 leased department locations and 1,529 total retail locations, compared
to 793 stores, 820 leased department locations and 1,613 total retail
locations operated at the end of April 2007.
Rebecca Matthias, President and Chief Creative Officer of Mothers Work,
noted, "We saw a strong improvement in our sales trend in April compared to
our March sales performance, as we experienced more Spring-like weather,
began to anniversary much weaker sales results from a year ago and
continued to refine our merchandise assortments and our in-store
merchandise presentation. Our reported comparable store sales increased
2.3% for the month, and this was achieved despite an Easter and calendar
shift impact which we estimate hurt our reported comparable store sales by
approximately 2 to 3 percentage points.
"Looking forward, we continue to feel very good about our product lines
and we are cautiously optimistic about seeing continued improvement in our
sales trend as we experience more seasonal temperatures and anniversary
weaker sales results compared to a year ago, and as we continue to refine
our merchandise assortments and our in-store merchandise presentation.
However, we recognize that we are faced with a continued extremely weak
overall economic and retail environment and, thus, we are managing our
inventory and expenditures very tightly. We continue to focus on developing
great maternity product under each of our brands and on improving our sales
and profitability performance. An example of this focus is our new
patent-pending product, the Secret Fit Belly(TM), which is made of seamless
super stretch fabric that can be utilized in all types of bottoms (such as
denim pants, other pants, shorts and skirts) to provide a great,
comfortable fit with a seamless look. We continue to be very excited by the
initial sales results of our products using the Secret Fit Belly and we
plan to expand our use of this innovative garment feature. We also continue
to be excited about our Destination Maternity stores, and we opened our
16th Destination Maternity Superstore in Cherry Hill, New Jersey during
April, and we are opening two additional Destination Maternity stores in
May. We are the only national retailer that is solely focused on maternity,
and we are further differentiating ourselves as the ultimate maternity
destination with these large, well-assorted, "must visit" Destination
Maternity 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 April 30, 2008, Mothers
Work operates 1,529 maternity locations, including 758 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
http://www.prnewswire.com/comp/581877.html /
CONTACT:
Edward M. Krell, Chief Operating Officer &
Chief Financial Officer of Mothers Work, Inc., +1-215-873-2220
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