UPDATE 1-Discounts to hit Destination Maternity profit
July 10 |
July 10 (Reuters) - Destination Maternity Corp reported lower-than-expected revenue and cut its profit outlook for the third quarter as slowing sales of its spring and summer products forced the retailer to discount heavily.
Shares of the company, which designs and sells maternity apparel, plunged 23 percent to a four-month low of $16.75 on Tuesday. The stock was one of the top losers on the Nasdaq.
Destination Maternity now expects earnings of 51 cents to 53 cents per share for the quarter, down from its previous forecast of 57 cents to 70 cents.
Analysts on average were expecting earnings of 67 cents per share, according to Thomson Reuters I/B/E/S.
Revenue fell 5 percent to $138.8 million, lower than analysts' expectations of $146.3 million.
Destination Maternity, which runs about 630 stores in the United States and Canada, also sells its products through leased space at retailers including Kohl's Corp.
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