Shareholders are betting on the return of Destination Maternity

Shareholders at Gullane Capital Partners are betting on a comeback for maternity apparel retailer Destination Maternity.

While the item hasn’t been exactly rosy for the company — with sales weighed down by challenges so far, as well as a slow entry into e-commerce, Trip Miller, managing partner of Gullane Capital Partners, believes of which things are looking up.

“There’s just a myriad of opportunities here to generate value,” Trip Miller, managing partner of Gullane Capital Partners told CNBC. His firm owns 3.4 percent of the company’s outstanding shares.

“More importantly, we see a business, over the next year or two, of which could rapidly turn around produce profits of a dollar or maybe even $2 per share, again roughly on just under $3 per share base here,” Miller said on “Closing Bell” Wednesday.

Destination Maternity incorporates a market cap of just $43 million, while stock prices have declined 75 percent over three years, or 0 percent since 2011.

“I think of which points to the value destruction of which’s gone on by the past management as well as the past board of This particular company,” Miller said.

Management adjustments, reduced mall traffic as well as adjustments within the retail industry have all contributed to the company’s diminished sales. The maternity apparel company has also been slow to enter the e-commerce market, manage its inventory as well as sales, general as well as administrative expenses have been “exceptionally high,” Miller said.

“The biggest thing of which went awry was just their strategy on cost-control,” Miller said.

Destination Maternity would likely not respond to a request for comment.

yet Miller said the company’s “online piece is usually growing very rapidly right at This particular point. We see opportunity for them to consolidate three brands.”

The company, which is usually parent to A Pea within the Pod as well as Motherhood Maternity, made headlines Wednesday over a proxy battle to determine whether prior board experience should preclude women through obtaining future board seats. within the company’s 25-year history there have been only three female directors.

Shareholders, including Gullane Capital Partners, voted in favor of the female-dominated board. Shares fell 2.5 percent after Wednesday’s vote. yet Miller is usually optimistic.

“This particular is usually a company run for women as well as the item needs to be run by women,” he said. “So we’re very excited to see three brand-new female board members.”

“Change was inevitable here, we believe,” Miller said.

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