Destination Maternity Opens First Shop-In-Shops In Mexico

World's Leading Maternity Apparel Retailer Launches 46 Shop-In-Shops with Franchise Partner El Puerto de Liverpool

Philadelphia, PA /PRNewswire/ - Destination Maternity Corporation (NASDAQ: DEST), the world's leading maternity apparel retailer, today announced the commencement of its planned expansion into Mexico with the opening of 46 Destination Maternity® branded shop-in-shops through a previously announced international franchise agreement with El Puerto de Liverpool, S.A.B. de C.V., the largest department store operator in Mexico.

These shop-in-shops are located within El Puerto de Liverpool's Liverpool and Fabricas de Francia branded department stores across Mexico's major cities, including Mexico City, Guadalajara, Monterrey, Queretaro, Veracruz and Villahermosa. Each approximately 800 square foot shop-in-shop carries Destination Maternity's Motherhood Maternity® branded maternity apparel, with select locations also carrying the Company's A Pea in the Pod® branded maternity apparel.

The Company expects that Destination Maternity branded shop-in-shops will open in approximately 53 more El Puerto de Liverpool department stores over the next 12 months, bringing the total Destination Maternity branded shop-in-shops in Mexicoto approximately 99. In addition, the Company expects that the first freestanding Destination Maternity store in Mexico will open in early Summer 2014. Located in Interlomas Mall in Mexico City, this 2,600 square-foot space will contain both Motherhood Maternity and A Pea in the Pod branded maternity apparel, and offer the complete Destination Maternity experience, including nursing apparel and accessories.

"We are very excited about our relationship with El Puerto de Liverpool and are very pleased with the quick pace of the rollout of the Destination Maternity, Motherhood Maternity and A Pea in the Pod brands in Mexico," said Ed Krell, Chief Executive Officer of Destination Maternity Corporation. "El Puerto de Liverpool has shown tremendous partnership and effort when it comes to ensuring that the execution of our brand within its shop-in-shops is consistent in all locations, from product presentation to customer service. We look forward to continuing our rollout in Mexico, both through shop-in-shops and freestanding stores, through this important franchise relationship."

El Puerto de Liverpool Chief Executive Officer Jorge A. Salgado said, "We are very pleased to launch this partnership with Destination Maternity, whose brands are recognized worldwide. We are sure that our customers will find this new offering very attractive and it will substantially improve our assortment in such a relevant category for our stores."

Under a multi-year franchise agreement, Destination Maternity has granted El Puerto de Liverpool the right to operate branded retail locations and market merchandise in Mexico under the Company's Motherhood Maternity, A Pea in the Pod and Destination Maternity brands. El Puerto de Liverpool is the Company's distributor in Mexico of maternity and nursing apparel merchandise from Destination Maternity and suppliers designated by Destination Maternity. In addition to Mexico, Destination Maternity currently has franchise relationships in the Middle East and South Korea.

About Destination Maternity Corporation
Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel. In the United States and Canada, as of March 31, 2014, Destination Maternity operates 1,906 retail locations, including 578 stores, predominantly under the trade names Motherhood Maternity®, A Pea in the Pod®, and Destination Maternity®, and 1,328 leased department locations, 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 has international store franchise and product supply relationships in the Middle East, South Korea and Mexico. As of March 31, 2014, Destination Maternity has 32 international franchised locations, including 19 Destination Maternity branded stores and 13 shop-in-shop locations.

About El Puerto de Liverpool, S.A.B. de C.V.
El Puerto de Liverpool, S.A.B. de C.V. is the largest full-scale department store company in Mexico, with over 100 units in operation, under three different brand names: Liverpool, Fabricas de Francia, and Liverpool Duty Free. Liverpool has more than 1.4 million square meters of sales floor and is present in 57 cities throughout the Mexican Republic. Liverpool's real estate operations are supported by 22 shopping malls in 14 different Mexican cities, in which Liverpool has more than 430 thousand square meters of gross leasing space. Liverpool is the third largest credit card issuer in Mexico, with more than 3.5 million cards. With more than 40 store fronts in several shopping malls, Liverpool also represents specialty retail firms in Mexico including Aeropostale, Banana Republic, Chico´s, Destination Maternity, Etam and Gap.

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 international expansion, 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 business and its 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, the continuation of the regular quarterly cash dividend, the trading liquidity of our common stock, changes in market interest rates, our ability to successfully manage and accomplish our planned relocation of our headquarters and distribution center facilities with minimal disruption to our overall operations, 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.