Destination Maternity focuses on ecommerce growth

Destination Maternity Corporation, in its operational update said that the investments in its ecommerce platform this year generated significant positive momentum, with the channel posting a 30.2 percent rise in comparable sales for the second quarter and an over 50 percent rise so far in the third quarter. Building on this strength, the company aims to maximize the connectivity between digital and brick and mortar channels.

Commenting on the update, Allen Weinstein, the company’s Interim Chief Executive Officer, stated in a statement: "I firmly believe that 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 as the leader in maternity and nursing apparel, and I am working diligently with the rest of the management team to ensure that we are well-positioned for the permanent CEO to make an immediate impact from day one.”

The next steps, Destination Maternity said, include opening up ship-from-store fulfilment from all company stores by the beginning of next month, rolling out pick-up-from store by the end of this calendar year, as well as additional short term initiatives including reserve online/pickup in store, and online appointments for in-store visits.

"These changes are expected to deliver 10 to 11 million dollars in run-rate savings beginning in fiscal year 2018, with one-time costs of approximately 3 million dollars that will mostly be incurred in fiscal year 2017. We will continue to evaluate effective means of streamlining processes, such as the ongoing evaluation of our real estate portfolio, as part of our broader efforts to meaningfully improve financial results and generate shareholder value," added Weinstein.

Adding further, Barry Erdos, Non-Executive Chairman of the Board said in the statement: "During this critical time, the board is working closely with all of its key advisors, including Guggenheim Securities, in exploring alternatives designed to maximize returns and value for the company's stockholders. Separately, the board is evaluating its composition and is prepared to add individuals who possess additional skills and experience, which will help further Destination's growth."

Picture:Facebook/Motherhood Maternity