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Destination Maternity Corporation Reports Sales for February 2009

Posted on: Thursday, 5 March 2009, 05:00 CST

Comparable Store Sales Decrease 3.5% on a Reported Basis, and Increase 0.2% after Adjusting for Calendar Shift

PHILADELPHIA, March 5 /PRNewswire-FirstCall/ -- Destination Maternity Corporation (Nasdaq: DEST), the world's leading maternity apparel retailer, today announced that net sales for the month of February 2009 decreased 6.6% to $42.7 million from $45.7 million reported for the month of February 2008. The Company also announced that its comparable store sales for the month of February 2009 decreased 3.5% on a reported basis (based on 959 locations), versus a comparable store sales increase of 4.8% for February 2008 on a reported basis (based on 1,402 locations). February 2008 was a 29-day month due to the leap year and, thus, included one extra day of sales compared to February 2009 and February 2007. After adjusting for this "calendar shift" effect by comparing sales for the first 28 days of February for each year, comparable store sales for the month of February 2009 increased 0.2%, versus an adjusted comparable store sales increase of 0.8% in February 2008. The decrease in total reported sales for the month compared to February 2008 resulted primarily from a decrease in sales due to having one less day in February 2009 compared to February 2008 and a decrease in Sears(R) leased department sales, due to the closure of all of the Company's remaining leased departments within Sears stores during the month of June 2008.

Ed Krell, Chief Executive Officer of Destination Maternity, noted, "We are very pleased with our 0.2% comparable store sales increase for February after adjusting for having one less day than last February, especially in light of the continued extremely difficult overall retail environment and the significant comparable store sales declines experienced by many retailers in recent months. In addition, we are pleased to have achieved this sales performance with significantly lower inventory levels and markdown levels versus last year, and improved merchandise gross margin performance versus last year."

During February 2009, the Company opened one store and closed four stores. As of the end of February 2009, the Company operates 736 stores, 354 leased department locations and 1,090 total retail locations, compared to 766 stores, 770 leased department locations and 1,536 total retail locations operated at the end of February 2008. The decrease in leased department locations at the end of February 2009 versus the end of February 2008 predominantly reflects the closure of the leased departments within Sears stores as compared to the 477 Sears leased departments operated by the Company at the end of February 2008, partially offset by the opening of an additional 52 Babies"R"Us(R) leased department locations in January 2009 and an additional 17 Babies"R"Us leased department locations in February 2009.

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." As of February 28, 2009, Destination Maternity Corporation operates 1,090 retail locations, including 736 stores, predominantly under the tradenames Motherhood Maternity(R), A Pea in the Pod(R), and Destination Maternity(R), and sells on the web through its DestinationMaternity.com and brand-specific websites. In addition, Destination Maternity Corporation distributes its Oh Baby by Motherhood(TM) collection through a licensed arrangement at Kohl's(R) stores throughout the United States and on Kohls.com.

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 expected net sales, comparable store sales, other results of operations, liquidity and financial condition, expense savings, 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 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, 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, potential additional 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

Source: PR Newswire

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