PHILADELPHIA, June 5 /PRNewswire-FirstCall/ -- Mothers Work, Inc.
(Nasdaq: MWRK), the world's leading maternity apparel retailer, today
announced that net sales for the month of May 2008 increased 0.2% to $54.2
million from $54.1 million reported for the month of May 2007. The
essentially flat sales versus last year resulted primarily from an increase
in comparable store sales, substantially offset by a decrease in sales from
our leased department and licensed relationships, including a decrease in
Sears(R) leased department sales, as well as reduced sales volume from the
ongoing closure of certain underperforming stores. Comparable store sales
for May 2008 increased 4.3% (based on 992 locations) versus a comparable
store sales decrease of 3.6% (based on 1,413 locations) for May 2007. 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 have not been included in the Company's comparable store
sales results beginning in April, the first month of the Company's third
quarter. As of May 31, 2008, the Company operates 477 Sears leased
departments, which will all close before the end of June 2008. As of May
31, 2007, the Company operated 524 Sears leased departments.
The comparable store sales increase of 4.3% for May 2008 was favorably
impacted by approximately 4 percentage points due to having five Fridays
and five Saturdays in May 2008 compared to four Fridays and four Saturdays
in May 2007. The Company's reported comparable store sales results for June
2008 will be unfavorably impacted by approximately 4 percentage points due
to having one less Friday and Saturday in June 2008 compared to June 2007.
During May 2008, the Company opened four stores, including its 17th and
18th Destination Maternity(R) Superstores, and closed 2 stores, including
one store closing related to a Destination Maternity store opening. As of
the end of May 2008, the Company operates 760 stores, 771 leased department
locations and 1,531 total retail locations, compared to 792 stores, 820
leased department locations and 1,612 total retail locations operated at
the end of May 2007.
Rebecca Matthias, President and Chief Creative Officer of Mothers Work,
noted, "We are pleased with the continued improvement in our sales trend we
saw in May, despite the adverse effect of unseasonably cool weather
compared to last May, as we continue to anniversary weaker sales results
from a year ago and continued to refine our merchandise assortments and our
in-store merchandise presentation.
"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. We also continue to be excited about our
Destination Maternity stores, and we opened our two newest Destination
Maternity Superstores during May, bringing our total to 18. 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 May 31, 2008, Mothers
Work operates 1,531 maternity locations, including 760 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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