Brian Grosso
Deep value

Destination Maternity: An Optimal Destination For Value/Contrarian Investors?

Business Overview

Destination Maternity (NASDAQ:DEST) designs and sells maternity apparel in the US and, increasingly, globally through over 2800 stores including licensed and international locations. A little over 2/3 of the locations are stores and leased departments that the company operates. The company designs clothing under several brands at different price points, and contract manufactures the apparel through factories mostly outside of the US. The company was founded in 1982 as a mail order catalog, began operating stores in 1985, IPOed in 1993, and made several strategic acquisitions from 1994-2001.

Competitive Position

The company rightly claims to be the undisputed leader in maternity apparel in the US. The company claims to have 35-45% market share. IBISWorld has the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details