Mother Works announces restructuring plan, reaffirms FY08 guidance
Mothers Work Inc. (Nasdaq:MWRK) announced Tuesday it would implement a strategic restructuring plan that will streamline merchandise brands and store nameplates to reduce costs. The Philadelphia-based maternity clothing retailer operates stores under the nameplates: Motherhood Maternity, Mimi Maternity, A Pea in the Pod and Destination Maternity. As part of the restructuring plan, Mimi Maternity’s merchandise will be re-branded under the A Pea in the Pod brand. The company will also rename its 48 single-brand Mimi Maternity stores to A Pea in the Pod. The company said it expects to realize about $5 million in annual expense savings from these moves.
On Tuesday, the company also reaffirmed its fiscal third-quarter earnings per share guidance and its full fiscal-year guidance estimates. Mother Works Inc. trading was mostly flat Tuesday, up to $10.25, an $0.18 increase over Monday’s close.
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