MOORESTOWN, N.J.--(BUSINESS WIRE)--Destination Maternity Corporation (NASDAQ:DEST) announced today a restructuring of the Company’s corporate product and sourcing teams as part of its efforts to reduce costs following ongoing rationalization of the Company’s overall product mix and improvements in inventory efficiency. These efforts are expected to yield net cost savings of approximately $1.2 million - $1.4 million in fiscal year 2019. This restructuring is part of the initial stages of Destination Maternity’s broader strategic plan focused on improving its long-term growth and profitability.
Marla Ryan, CEO of Destination Maternity commented, “Recognizing the need to focus our product assortment, rationalize costs and improve inventory efficiency, we completed an in-depth review of our product offer, overall inventory levels and distribution channels. Through this effort, we identified profitable solutions to improve our product mix and reduce inventory as we begin 2019. We also made the difficult decision to reduce headcount in our product and sourcing divisions to better rationalize resources and costs across the organization.
“While these actions are never easy, the changes we are implementing will enable us to become a leaner and more nimble organization. They will also allow us to reallocate more of our resources on becoming a digital flagship serving the needs of today’s millennial moms and moms2be. While there is certainly more work ahead of us, I am encouraged by what we have achieved to date and the opportunities ahead.”
Destination Maternity expects the restructuring to result in a one-time severance charge of approximately $0.5 million during the third quarter of 2018.
About Destination Maternity
Destination Maternity Corporation (Nasdaq: DEST) is the world's largest designer and retailer of maternity apparel. As of August 4, 2018, Destination Maternity operates 1,114 retail locations in the United States, Canada and Puerto Rico, including 480 stores, predominantly under the trade names Motherhood Maternity®, A Pea in the Pod® and Destination Maternity®, and 634 leased department locations. The Company also sells merchandise on the web primarily through its brand-specific websites, motherhood.com and apeainthepod.com, as well as through its destinationmaternity.com website. Destination Maternity has international store franchise and product supply relationships in the Middle East, South Korea, Mexico, Israel and India. As of August 4, 2018, Destination Maternity has 188 international franchised locations, including 11 standalone stores operated under one of the Company's nameplates and 177 shop-in-shop locations.
