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PHILADELPHIA, Aug. 6 /PRNewswire-FirstCall/ -- Destination Maternity Corporation (Nasdaq: DEST), the world's leading maternity apparel retailer, today reported sales for the month of July 2009. Net sales for the month of July 2009 decreased 8.4% to $38.5 million from $42.0 million reported for the month of July 2008. Comparable store sales for the month of July 2009 decreased 8.3% on a reported basis, and decreased approximately 9.0% after adjusting for the "days adjustment calendar timing shift." For July 2008, the Company's comparable store sales increased 2.8% on a reported basis. The decrease in total reported sales for July 2009 compared to July 2008 resulted primarily from the decrease in comparable store sales.

Ed Krell, Chief Executive Officer of Destination Maternity, noted, "Our sales for the month of July were in line with our recent guidance but weaker than originally planned, which we attribute to: (i) the continued extremely difficult overall retail environment; (ii) continued unfavorable weather, with much cooler than normal weather in many regions of the country, dampening demand for summer apparel; (iii) our relatively strong comparable store sales last July; and (iv) our ability to be much less price promotional this July versus a year ago, due to our strong inventory control and much lower inventory level than a year ago, with our end of June 2009 inventory 24% lower than a year ago. With our much cleaner inventory position versus a year ago, our merchandise gross margin this July was significantly higher than last July. Our comparable store sales decrease of 8.3% for July was within our guidance range of a decrease of between 7% and 9% provided in our July 29, 2009 press release."

During July 2009, the Company closed two stores. As of the end of July 2009, the Company operates 728 stores, 357 leased department locations and 1,085 total retail locations, compared to 759 stores, 294 leased department locations and 1,053 total retail locations operated at the end of July 2008.

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 July 2009, there was one more Friday and one less Tuesday compared to July 2008, which the Company estimates favorably impacted its reported comparable store sales for July 2009 by approximately 0.7 percentage points.

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 July 31, 2009, 1,085 retail locations, including 728 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. Destination Maternity also 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, and, beginning in October 2009, will also offer its Two Hearts Maternity(R) by Destination Maternity collection in Sears(R) stores and certain Kmart(R) 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.