Comparable Store Sales Increase 7.2% on Reported Basis, and Increase
Approximately 3.2% after Adjusting for Calendar Shift
PHILADELPHIA, Sept. 4 /PRNewswire-FirstCall/ -- Mothers Work, Inc.
(Nasdaq: MWRK), the world's leading maternity apparel retailer, today
announced that net sales for the month of August 2008 decreased 5.0% to
$44.8 million from $47.1 million reported for the month of August 2007, and
announced that its comparable store sales increased 7.2% for the month of
August 2008. The decrease in sales versus last year resulted primarily from
decreased sales from the Company's licensed relationship and 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, partially offset by increased comparable store sales. A
portion of the decrease in August sales from the licensed relationship
reflects a shift in the monthly timing of product shipments compared to
last year. The Company's comparable store sales for August 2008 increased
7.2% (based on 971 locations) versus a comparable store sales decrease of
3.7% (based on 1,384 locations) for August 2007. The comparable store sales
increase of 7.2% for August 2008 was favorably impacted by approximately 4
percentage points due to having five Saturdays and five Sundays in August
2008 compared to four Saturdays and four Sundays in August 2007 and due to
the earlier timing of Labor Day compared to last year.
During August 2008, the Company opened two stores, including one
multi-brand store opening, and closed five stores, including three store
closings related to multi-brand store openings. As of the end of August
2008, the Company operates 756 stores, 282 leased department locations and
1,038 total retail locations, compared to 784 stores, 796 leased department
locations and 1,580 total retail locations operated at the end of August
2007. The decrease in leased department locations at the end of August 2008
versus the end of August 2007 predominantly reflects the closure of the
leased departments within Sears stores as compared to the 502 Sears leased
departments operated by the Company at the end of August 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. Our comparable store sales increased 7.2%, as we anniversaried
weaker sales results from a year ago and continued to refine our
merchandise assortments and our in-store merchandise presentation. Even
excluding the approximately 4 percentage point benefit from having an extra
Saturday and Sunday this August compared to last year, our adjusted
comparable store sales increased approximately 3.2%, which we are very
proud of given the weak macro environment. We should point out, though,
that our gross margin in August was somewhat lower than planned, as our
sales were especially strong in marked down Spring and Summer merchandise.
"Looking forward, we feel very good about our product lines and we are
optimistic about seeing continued improvement in our sales trend. However,
we recognize that we are faced with a 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 are focused 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 August 31, 2008, Mothers
Work operates 1,038 maternity locations, including 756 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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