Destination Maternity Reports Sales For February 2011

Mar 03, 2011, 06:00 ET from Destination Maternity Corporation

PHILADELPHIA, March 3, 2011 /PRNewswire/ -- Destination Maternity Corporation (Nasdaq: DEST), the world's leading maternity apparel retailer, today reported that net sales for the month of February 2011 increased 8.2% to $45.5 million from $42.1 million reported for the month of February 2010.  Comparable retail sales data (which consists of comparable store sales and Internet sales) for the months of February 2011 and 2010 is included in the table below.

February 2011

February 2010

% increase (decrease)

Comparable retail sales

3.7

%

(7.4)

%

Comparable store sales

2.6

%

(9.3)

%

Internet sales

20.1

%

34.7

%

The increase in total reported sales for February 2011 compared to February 2010 resulted primarily from increased sales due to the expansion of the Company's maternity apparel leased department relationship with Macy's®, increased sales from the Company's licensed relationship, the increase in comparable store sales and increased Internet sales.

Ed Krell, Chief Executive Officer & President of Destination Maternity, noted, "We are very pleased with our 8.2% sales increase for the month of February, which reflects early results of our Macy's expansion, as well as our better than planned comparable store sales increase of 2.6%.  Our comparable store sales were positively impacted by weather conditions that changed from adverse, early in the month, to much more favorable in the latter part of the month.  Early in February, much of the country experienced winter storms and unseasonably cold weather that gave way to much warmer temperatures in many regions later in the month, benefiting sales of Spring merchandise, which represent a significantly larger percentage of our total sales for February than do sales of Fall merchandise.  We are pleased with the strong early sales results of our Spring merchandise assortments.  Also in February, we completed the significant expansion of our maternity apparel leased department relationship with Macy's, increasing our relationship from 115 Macy's store locations to 631 Macy's store locations throughout the United States, offering a mix of Motherhood Maternity® and A Pea in the Pod® branded merchandise.  We have been a proud partner with Macy's for nearly 20 years, and this expansion deepens our position as the leading maternity apparel retailer in the world."

During February 2011, the Company opened two stores, including its 27th Destination Maternity Superstore, and closed three stores, including two store closings related to the Destination Maternity Superstore opening.  As of the end of February 2011, the Company operates 678 stores, 1,702 leased department locations and 2,380 total retail locations, compared to 711 stores, 978 leased department locations and 1,689 total retail locations operated at the end of February 2010.  The increase in leased department locations at the end of February 2011 versus the end of February 2010 predominantly reflects the opening of 516 leased department locations in January and February 2011 for our Macy's expansion, and an additional 217 Sears and Kmart leased department locations in September and October 2010.

Days Adjustment Calendar Shift

Destination Maternity reports sales on a calendar month basis, rather than on a "4-5-4 retail fiscal calendar" where each fiscal week and fiscal month starts on a Sunday and ends on a Saturday.  Thus, for each calendar month, there is typically a "days adjustment calendar shift" which may help or hurt reported calendar month sales, comparable retail sales and comparable store sales due to different days of the week typically contributing more sales than other days of the week.  February has an equal number of each day of the week, except for the extra day added during a leap year, which last occurred in February 2008.  As a result, there was no calendar shift impact in February 2011 or February 2010.

Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel.  In the United States and Canada, as of February 28, 2011, Destination Maternity operates 2,380 retail locations, including 678 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 net sales, comparable retail sales, comparable store sales, other results of operations, liquidity and financial condition, 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



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