PHILADELPHIA, June 1, 2011 /PRNewswire/ -- Destination Maternity Corporation (Nasdaq: DEST), the world's leading maternity apparel retailer, today announced that the Compensation Committee of the Company's Board of Directors granted an inducement stock option to purchase up to 40,000 shares of common stock to Christopher F. Daniel, its newly appointed President, on June 1, 2011. On April 27, 2011, the Company previously announced the hiring of Mr. Daniel as its President, effective June 1, 2011.
The stock option is a non-qualified stock option and has an exercise price of $20.62 per share, which was the closing stock price of the Company's common stock on the NASDAQ Global Select Market on the business day immediately preceding the grant date. The option vests 20% per year over five years, with the first portion of the award vesting on the first anniversary of the date of grant, subject to Mr. Daniel's continued service to Destination Maternity. The stock option has a maximum term of ten (10) years.
The stock option was granted as an inducement material to Mr. Daniel's entering into employment with Destination Maternity in accordance with NASDAQ Listing Rule 5635(c)(4).
Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel. In the United States and Canada, as of May 31, 2011, Destination Maternity operates 2,361 retail locations, including 663 stores, predominantly under the tradenames Motherhood Maternity®, A Pea in the Pod®, and Destination Maternity®, and sells on the web through its DestinationMaternity.com and brand-specific websites. Destination Maternity also distributes its Oh Baby by Motherhood® collection through a licensed arrangement at Kohl's® stores throughout the United States and on Kohls.com. In addition, Destination Maternity is expanding internationally and has exclusive store franchise and product supply relationships in India and the Middle East.
The Company cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made from time to time by management of the Company, including those regarding changes in management, results of operations, and various business initiatives, involve risks and uncertainties, and are subject to change based on various important factors. The following factors, among others, in some cases have affected and in the future could affect the Company's financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any such forward-looking statements: the continuation of the economic recovery of the retail industry in general and of apparel purchases in particular, our ability to successfully manage our various business initiatives, the success of our international expansion, our ability to successfully manage and retain our leased department and licensed relationships and marketing partnerships, future sales trends in our existing store base and through the Internet, unusual weather patterns, changes in consumer spending patterns, raw material price increases, overall economic conditions and other factors affecting consumer confidence, demographics and other macroeconomic factors that may impact the level of spending for maternity apparel, expense savings initiatives, our ability to anticipate and respond to fashion trends and consumer preferences, unanticipated fluctuations in our operating results, the impact of competition and fluctuations in the price, availability and quality of raw materials and contracted products, availability of suitable store locations, continued availability of capital and financing, our ability to hire and develop senior management and sales associates, our ability to develop and source merchandise, our ability to receive production from foreign sources on a timely basis, potential stock repurchases, potential debt prepayments, the continuation of the regular quarterly cash dividend, the trading liquidity of our common stock, changes in market interest rates, war or acts of terrorism and other factors set forth in the Company's periodic filings with the Securities and Exchange Commission, or in materials incorporated therein by reference.
SOURCE Destination Maternity Corporation