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Sales and Profits Slide at Mothers Work

PHILADELPHIA-Sales for the maternity apparel chain suffer from cool weather and popular non-maternity fashions that fit women in early pregnancy.

By Marita Thomas | Updated on July 25, 2007

PHILADELPHIA-Mothers Work Inc. suffered a tougher than expected third quarter. Sales dropped 6.5% to $153.2 million from $163.9 million in the same quarter a year ago. Comp-store sales fell 8.2% based on 1,393 locations in third-quarter 2007, versus an increase of 6.4% during the third quarter of 2006 when 1,472 locations were in operation.

The locally based maternity apparel chain continued its ongoing strategy of expanding multi-brand concept stores, which typically involves closing two or more smaller units. Five new units, including four multi-brand ones, were opened during the quarter ended June 30, and 13 were closed, with eight of the closures related to multi-brand store openings. The stores operate under the names A Pea in the Pod, Mimi Maternity and Motherhood Maternity.

During a conference call, Rebecca Matthias, president and CEO, acknowledged that third-quarter sales “we weaker than we had planned.” She attributed the dip “primarily to a continued difficult overall economic and retail environment, unseasonably cool weather early in the quarter, and, importantly, a negative impact from the current popularity of certain styles in the non-maternity women’s apparel market.” Trapeze and baby-doll dresses and tops, she said, “can more readily fit a pregnant woman in her pregnancy than typical non-maternity fashions.”

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