PHILADELPHIA, Aug. 7 /PRNewswire-FirstCall/ -- Mothers Work, Inc.
(Nasdaq: MWRK), the world's leading maternity apparel retailer, today
announced that net sales for the month of July 2008 decreased 0.6% to $42.0
million from $42.2 million reported for the month of July 2007, and
announced that its comparable store sales increased 2.8% for the month of
July 2008. The slight decrease in sales versus last year resulted primarily
from a decrease in Sears(R) leased department sales, due to the closure of
all of the Company's remaining leased departments within Sears stores
during the month of June 2008, substantially offset by increases in
comparable store sales, sales from the Company's licensed relationship and
internet sales. The Company's comparable store sales for July 2008
increased 2.8% (based on 991 locations) versus a comparable store sales
decrease of 9.4% (based on 1,388 locations) for July 2007. The comparable
store sales decrease of 9.4% for July 2007 was unfavorably impacted by
approximately 2 to 3 percentage points due to having four Saturdays in July
2007 compared to five Saturdays in July 2006.
During July 2008, the Company opened one store and closed three stores.
As of the end of July 2008, the Company operates 759 stores, 294 leased
department locations and 1,053 total retail locations, compared to 785
stores, 802 leased department locations and 1,587 total retail locations
operated at the end of July 2007. The decrease in leased department
locations at the end of July 2008 versus the end of July 2007 reflects the
closure of the leased departments within Sears stores as compared to the
508 Sears leased departments operated by the Company at the end of July
2007.
Rebecca Matthias, President and Chief Creative Officer of Mothers Work,
noted, "We are very pleased to report another month of strong sales
performance, despite the continued weak overall economic and retail
environment, as we delivered a comparable store sales increase of 2.8%,
which was in line with our revised guidance of a 2.0% to 3.5% July
comparable store sales increase that we provided in our July 29, 2008 press
release.
"Looking forward, we continue to feel very good about our product lines
and we are optimistic about seeing continued improvement in our sales trend
as we 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 weak
overall economic and retail environment and, thus, we are managing our
inventory and expenditures very tightly. We feel strongly that the
strategic restructuring and streamlining of our merchandise brands and
store nameplates that we announced on July 1, 2008, will help improve our
long-term profitability by simplifying our brand structure, reducing our
cost structure, and leveraging both our renowned A Pea in the Pod luxury
brand and our growing multi-brand Destination Maternity store brand. We
continue to focus on developing great maternity product under each of our
brands and on improving our sales and profitability performance."
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 July 31, 2008, Mothers
Work operates 1,053 maternity locations, including 759 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 net sales, comparable store
sales, other results of operations, liquidity and financial condition,
expense savings, 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, unusual weather patterns, changes in consumer
preferences and spending patterns, demographics and other macroeconomic
factors that may impact the level of spending for maternity apparel,
overall economic conditions and other factors affecting consumer
confidence, the impact of competition and fluctuations in the price,
availability and quality of raw materials and contracted products,
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:
Judd P. Tirnauer, Senior Vice President &
Chief Financial Officer, +1-215-873-2278
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