Mothers Work cuts 2008 profit outlook, expects 3Q decline

Mothers Work said it expects earnings per share between 61 cents and 76 cents per share for the third quarter. In the 2007 third quarter, the company earned 90 cents per share, excluding debt repurchase charges.

The company expects revenue between $150 million to $153.5 million in the third quarter.

Chief Creative Officer Rebecca Matthias said in a statement sales are beginning to improve now that the weather is warmer.

She said the company is expecting same-store sales, or sales at stores open at least a year, to range between a drop of 1 percent to a rise of 3 percent in April.

Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly-opened ones.

For the quarter, Matthias said she expects same-store sales to rise between 1 percent and 3.5 percent.

For the full 2008 fiscal year, the company anticipates profit between 5 cents and 36 cents per share. Previously, the company had expected profit between 72 cents and $1.20 per share.

Matthias said the company is now predicting lower profit for the year due to an expected sales decline. The company expects revenue between $562 million and $570 million. That would represent a decline of between 2 percent and 3 percent from revenue in 2007.

Matthias said the sales from the company's leased department and licensed relationships will likely dip. The company will also lose the revenue it took in from a relationship with Sears. The company will no longer sell its clothing at Sears beginning in June.