Destination Maternity Corporation Reports Sales For October 2009

PHILADELPHIA, Nov. 5 /PRNewswire-FirstCall/ -- Destination Maternity
Corporation (Nasdaq: DEST), the world's leading maternity apparel retailer,
today reported sales for the month of October 2009. Net sales for the month
of October 2009 decreased 1.8% to $44.3 million from $45.1 million reported
for the month of October 2008. Comparable store sales for the month of
October 2009 decreased 5.2% on a reported basis, and decreased approximately
8.2% after adjusting for the "days adjustment calendar timing shift." For
October 2008, the Company's comparable store sales increased 6.0% on a
reported basis, and increased approximately 5.0% after adjusting for the
calendar shift. The decrease in total reported sales for October 2009
compared to October 2008 resulted primarily from the decrease in comparable
store sales, partially offset by increased international sales and sales from
the Company's leased department relationships, due to the re-launch of the
exclusive Two Hearts® Maternity collection in Sears® and Kmart® stores in
October 2009.

Ed Krell, Chief Executive Officer of Destination Maternity, noted, "Although
we are not pleased with our comparable store sales results for October, we are
pleased to have re-launched our exclusive Two Hearts Maternity collection in a
total of 619 Sears and Kmart stores during the month, and we are pleased with
our significantly higher merchandise gross margin than last year. We
attribute our comparable store sales decrease to: (i) the continued extremely
difficult overall retail environment; and (ii) our strong comparable store
sales performance for October of last year, when our comparable store sales
increased 5.0% after adjusting for the calendar shift. Given our very strong
comparable store sales performance in October 2008, we had planned our
comparable store sales to decrease in October 2009, although not quite to the
extent which we actually realized. Our improved merchandise gross margin
versus last year was driven by reduced product costs and reduced markdown
levels enabled by continued tight inventory control, with inventory levels
continuing to be lower than a year ago, as we continue to tightly manage our
business in this difficult sales environment. As part of the continued tight
management of our business, we are also continuing to manage our expenses very
tightly."

During October 2009, the Company opened its 23(rd) Destination Maternity
Superstore and closed three stores, including two store closings related to
multi-brand store openings. As of the end of October 2009, the Company
operates 722 stores, 976 leased department locations and 1,698 total retail
locations, compared to 752 stores, 281 leased department locations and 1,033
total retail locations operated at the end of October 2008. The increase in
leased department locations at the end of October 2009 versus the end of
October 2008 predominantly reflects the opening of 619 Sears and Kmart leased
department locations in October 2009.

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 a "days adjustment calendar shift" which may help or hurt reported
calendar month sales and comparable store sales due to different days of the
week typically contributing more sales than other days of the week. For
October 2009, there was one more Saturday and one less Wednesday compared to
October 2008. The Company estimates this calendar shift favorably impacted
its reported comparable store sales for October 2009 by approximately 3
percentage points. The comparable store sales increase of 6.0% for October
2008 was favorably impacted by approximately 1 percentage point due to having
one more Thursday and Friday and one less Monday and Tuesday in October 2008
compared to October 2007.

The Company will report results for the fourth quarter and hold an investor
conference call on November 18, 2009, at which time it will provide additional
information related to results for the fourth quarter and future financial
guidance.

Destination Maternity Corporation is the world's largest designer and retailer
of maternity apparel, using its quick response replenishment system to "give
the customer what she wants, when she wants it." In the United States and
Canada, Destination Maternity operates, as of October 31, 2009, 1,698 retail
locations, including 722 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, and, in October 2009, re-launched its Two Hearts Maternity®
by Destination Maternity collection in Sears® stores and certain Kmart® stores
through a leased department relationship with Sears. In addition, Destination
Maternity is expanding internationally and has entered into 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 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 impact of the current global economic slowdown on the retail
industry in general and on apparel purchases in particular, our ability to
successfully manage our various business initiatives, our ability to
successfully implement our merchandise brand and retail nameplate
restructuring, 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, unusual weather patterns, changes in consumer preferences and
spending patterns,demographics and other macroeconomic factors that may impact
the level of spending for maternity apparel, overall economic conditions and
other factors affecting consumer confidence, expense savings initiatives, 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, goodwill
impairment charges, ability to hire and develop senior management and sales
associates, ability to develop and source merchandise, ability to receive
production from foreign sources on a timely basis, potential stock
repurchases, potential debt prepayments, 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

Judd P. Tirnauer, Senior Vice President & Chief Financial Officer of
Destination Maternity Corporation, +1-215-873-2278