Destination Maternity interim CEO shares positive updates
Destination Maternity's interim CEO updated shareholders with company developments which include an expanded ecomm business up 30% in comp sales over last year and a forecasted $10-11M savings for next fiscal year.
The updates come after the company had a series of meetings with stockholders in the previous weeks. Allen Weinstein, Interim Chief Executive Officer, said he believes "the infrastructure improvements implemented at Destination over the past three years have established a solid foundation on which the Company can further enhance its position."
Improvements include boosting the company's e-commerce site and creating a more integrated digital-to-brick-and-mortar experience. So far the company has seen a 30.2% rise in comparable sales for Q2 and an over 50% rise so far in Q3. In addition to improving the company's e-commerce experience, Destination Maternity will begin shipping from stores next month.
Destination Maternity will begin offering customers the chance to pick up items at stores by the end of this year. It will also introduce a reserve online/pickup in store feature and the opportunity to make appointments for in-store visits.
Weinstein said going forward the company will evaluate its real estate portfolio as part of its "broader efforts to meaningfully improve financial results and generate shareholder value." He also said streamlining operations will result in a $10 to $11 million saving that stockholders will see beginning in the 2018 fiscal year.
The changes made to make the company leaner cost a one-time amount of $3 million that will likely hit Destination Maternity's books in this fiscal year.
Destination Maternity has 1,100 retail locations in North America. 500 locations operate under the Motherhood Maternity, A Pea in the Pod, and Destination Maternity trade names. 600 locations operate as leased department shops in larger stores.
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