Destination Maternity : leader américain du vêtement de grossesse

Impressionnante cette remontada.
J’en profite aussi pour sortir autour de mon PRU mais j’avais aussi malheureusement largué une partie de ma position bien plus bas.
Bravo à ceux qui sont entrés l’an dernier entre 1 et 2 $ !

Encore +13 % aujourd’hui, et comme je viens de découvrir que j’en avais encore sur mon autre CTO (), quelqu’un a-t’il une idée de combien vaut, ou peut valoir, ce truc ? Je suis dans le flou…

Déontologie : je détiens une position acheteuse/vendeuse sur une ou plusieurs société(s) listée(s) dans ce message.

Choice Equities Fund a écrit :

DEST - Destination Maternity is the world’s largest designer and retailer of maternity apparel. Like many retailers, the company thrived in the 1990s and 2000s with growing same store sales and an increasing store footprint as malls and shopping centers proliferated across the country. Also, like many retailers, the company has struggled over the last five years as Amazon and the growth of the online channel have diverted sales away from brick-and-mortar locations and left many participants with too many stores and bloated and under-absorbed cost structures. Unlike most other retailers, the company was further plagued by poor management and questionable corporate governance practices that did not always position shareholders and management with aligned incentives.

This past winter, a team of activists identified these issues and waged a battle for control of the company. An ugly proxy battle ensued, but the activists emerged victorious and have since installed an impressive new board and a CEO with solid retail and turnaround experience.

There is much work to do, but there is much to build on. Despite the recent issues, the company maintains an impressive customer list with a market-leading share in a category known for customer loyalty. The company has a store base of ~1,000, comprised of ~400 company-operated locations and ~600 leased locations inside department stores. The stores operate under the three banners: Motherhood Maternity, Pea in the Pod and Destination Maternity. Together, the company earns an impressive 50%+ gross margin but has an SGA margin that is worst in its class. Combined with a store footprint where ~50% of the stores will be up for lease by the end of 2019, it seems there is an opportunity for addition by subtraction for the company. Additionally, the company has been late to the eCommerce game. But recent initiatives there auger well there too. The online channel has grown from practically zero a year ago to nearly a quarter of the sales mix today and is still growing at a high teens rate. Our conversations with the new CEO point to a team that is intent on furthering these initiatives and cutting costs to create a leaner and more profitable company.

Recently changing hands at a little north of $4 per share today, the company is trading at 5x FY2018 EBITDA and .4x sales, versus peers who generally trade around 6-8x and 1-1.5x TEV / sales. The activist case suggests improved performance could again position the company to soon earn $2 as they nearly did in 2013. It is unclear if this outlook may prove optimistic. But even if new management is able to get half way there towards the goal of $2 of EPS, it seems shares still represent a compelling bargain.

source

Catalyseurs :
- elimination des magasins non rentables (grace à la fin des baux en 2019)
- croissance sur internet

Déontologie : je détiens une position acheteuse/vendeuse sur une ou plusieurs société(s) listée(s) dans ce message.