Mothers Work swings to 2Q loss on sales

For the quarter ended March 31, the company reported a loss of $390,000, or 7 cents per share, compared to a profit of $2.6 million, or 41 cents per share in the prior-year quarter.

Excluding a loss on extinguishment of debt, the company said it had a loss of 6 cents per share.

Revenue fell 3 percent to $139 million from $143.9 million in the second quarter of 2007.

The company said the dip in revenue came partly from lower sales volume, due to the closing of underperforming stores.

Same-store sales, or sales at stores open at least a year, fell 1.7 percent. Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly-opened ones.

Chief Creative Officer Rebecca Matthias said sales were much weaker than expected in March, with sales of spring merchandise far lower than predicted.

Matthias attributed the lower sales in a statement to the "extremely weak overall economic and retail environment" as well as cold weather in March. She also blamed new styles of non-maternity clothes that fit pregnant women, like trapeze and baby doll dresses and tops.

The sales decline, she added, required the company to mark down its merchandise, which also hurt profit.