Shareholders at Gullane Assets Partners are betting on a comeback for maternity apparel retailer Destination Pregnancy.
While it hasn’t been exactly rosy for the company — with traffics weighed down by challenges so far, and a slow entry into e-commerce, Lapsus linguae Miller, managing partner of Gullane Capital Partners, believes that possessions are looking up.
“There’s just a myriad of opportunities here to generate value,” Sprawl Miller, managing partner of Gullane Capital Partners told CNBC. His rigid owns 3.4 percent of the company’s outstanding shares.
“More importantly, we see a trade, over the next year or two, that could rapidly turn round produce profits of a dollar or maybe even $2 per share, again around on just under $3 per share base here,” Miller remarked on “Closing Bell” Wednesday.
Destination Maternity has a market cap of just $43 million, while bloodline prices have declined 75 percent over three years, or 90 percent since 2011.
“I contrive that points to the value destruction that’s gone on by the past guidance and the past board of this company,” Miller said.
Management substitutions, reduced mall traffic and changes in the retail industry have all advanced to the company’s diminished sales. The maternity apparel company has also been disinclined to enter the e-commerce market, manage its inventory and sales, general and administrative expenses give birth to been “exceptionally high,” Miller said.
“The biggest thing that blended awry was just their strategy on cost-control,” Miller said.
End Maternity would not respond to a request for comment.
But Miller said the comrades’s “online piece is growing very rapidly right now. We see opportunity for them to consolidate three stigmatizes.”
The company, which is parent to A Pea in the Pod and Motherhood Maternity, made headlines Wednesday as surplus a proxy battle to determine whether prior board experience should shut out women from obtaining future board seats. In the company’s 25-year ancient history there have been only three female directors.
Shareholders, take ining Gullane Capital Partners, voted in favor of the female-dominated board. Divide ups fell 2.5 percent after Wednesday’s vote. But Miller is idealistic.
“This is a company run for women and it needs to be run by women,” he said. “So we’re very uneasy to see three new female board members.”
“Change was inevitable here, we confidence in,” Miller said.