DESTINATION MATERNITY CORPORATION

DESTINATION MATERNITY CORPORATION

Previous company name
MOTHERS WORK, INC.
Name change date
12/8/2008
Company Overview
Mothers Work, Inc., with headquarters located in Philadelphia, Pennsylvania, USA, is a designer, manufacturer and retailer of maternity clothing. Founded by Rebecca Matthias as a catalog business in 1982, Mothers Work has grown to become the world’s largest maternity apparel retailer, employing approximately 5,000 people in more than 1,500 locations in the United States. Mothers Work also operates 739 leased departments, predominantly under the trade names Motherhood, A Pea in the Pod, Destination Maternity and Mimi Maternity. Since the time of its initial public offering in March 1993, Mothers Work has grown as a result of the addition of new stores, the acquisition of existing maternity stores, new brands, increased sales volume and a large group of tea m members.
Business Summary
Destination Maternity Corporation is the designer and retailer of maternity apparel in the United States and is the nationwide chain of maternity specialty stores. As of September 30, 2010, the Company operated 1,725 retail locations, including 698 stores in all 50 states, Puerto Rico, Guam and Canada, and 1,027 leased departments located within department stores and baby specialty stores throughout the United States. As of September 30, 2010, it also provided maternity apparel to Kohl’s, which operated approximately 1,089 stores throughout the United States. The Company operates its 698 stores under three retail nameplates: Motherhood Maternity, A Pea in the Pod and Destination Maternity. In addition to its 698 stores, it operates 1,027 maternity apparel departments, which it refers to as leased departments, within retailers, such as Sears, Kmart, Macy’s, Bloomingdale’s, BabiesRUs, Boscov’s and Gordmans.
Description and history
Destination Maternity Corporation, incorporated in 1982, is the designer and retailer of maternity apparel in the United States and is the nationwide chain of maternity specialty stores. As of September 30, 2010, the Company operated 1,725 retail locations, including 698 stores in all 50 states, Puerto Rico, Guam and Canada, and 1,027 leased departments located within department stores and baby specialty stores throughout the United States. As of September 30, 2010, it also provided maternity apparel to Kohl’s, which operated approximately 1,089 stores throughout the United States. The Company operates its 698 stores under three retail nameplates: Motherhood Maternity, A Pea in the Pod and Destination Maternity. In addition to its 698 stores, it operates 1,027 maternity apparel departments, which it refers to as leased departments, within retailers, such as Sears, Kmart, Macy’s, Bloomingdale’s, BabiesRUs, Boscov’s and Gordmans.

The Company is the maternity apparel provider in each of its leased department relationships. As of September 30, 2010, it had 31 international franchised locations, consisted of eight stand-alone stores in the Middle East operated under one of its retail nameplates, and 23 shop-in-shop locations in India, in which it has a Company branded department operated under the Mom & Me retail nameplate owned by its India franchise partner. It also sells merchandise on the Internet, through DestinationMaternity.com and it various brand-specific Websites. As of September 30, 2010, the Company operated 36 Motherhood stores in Canada and a Motherhood Website under MotherhoodCanada.ca.

Motherhood Maternity Stores

As of September 30, 2010, Motherhood Maternity was its chain with 567 stores. Motherhood stores average approximately 1,800 square feet and are located in mid-priced and moderate regional malls, strip and power centers, and central business districts. Motherhood stores include 84 outlet locations that carry Motherhood-branded merchandise, as well as some closeout merchandise. During the fiscal year ended September 30, 2010 (fiscal 2010), it opened three new Motherhood stores and outlets and closed 27 Motherhood stores and outlets, with 14 of these store closings related to Destination Maternity store openings. As of September 30, 2010, it operated 36 Motherhood stores in Canada.

A Pea in the Pod Stores

The Company’s A Pea in the Pod brand serves both the medium-priced portion and, through its A Pea in the Pod Collection line, the luxury portion of the maternity apparel business. The Pea brand is positioned as contemporary, fashion-forward and luxury, with prices ranging from mid-priced to luxury prices, offering the mom-to-be maternity pieces. The Pea Collection is the maternity luxury line within the Pea brand. In its stores, which carry A Pea in the Pod brand merchandise, it also offers exclusive maternity versions of select styles.

Two Hearts Maternity by Destination Maternity

This collection delivers the career and casual sportswear, as well as dresses, swimwear, lingerie and nursing-friendly sleepwear, all designed to complement the pregnant silhouette. As of September 30, 2010, it had 75 Destination Maternity stores averaging approximately 4,100 square feet, including 49 Destination Maternity combo stores and 26 Destination Maternity superstores. As of September 30, 2010, it had 49 Destination Maternity combo stores. A new combo store involves closing two stores often one Motherhood store and one Pea store. During fiscal 2010, it opened five Destination Maternity combo stores. As of September 30, 2010, it had 26 Destination Maternity superstores. Destination Maternity superstores carry both of its merchandise brands (Motherhood and Pea), plus a range of maternity-related accessories, nursing products, health and fitness products, books, and body and nutritional products. Destination Maternity superstores also carry its luxury A Pea in the Pod Collection portion of the Pea brand. Its Destination Maternity superstores also typically feature a learning center area for maternity-related classes, a relax area for husbands and shoppers alike, and an inside play area for the pregnant mom’s toddlers and young children, with seven of its superstores also having its Edamame The Maternity Spa. As of September 30, 2010, Destination Maternity superstores range from nearly 4,000 square feet to approximately 11,000 square feet, with an average of approximately 6,500 square feet for the 26 stores open. During fiscal 2010, it opened four Destination Maternity superstores.

Leased Departments

In addition to the stores the Company operates, it has arrangements with department stores and baby specialty stores, including Sears, Kmart, Macy’s, Bloomingdale’s, BabiesRUs, Boscov’s and Gordmans, to operate maternity apparel departments in their stores. It is the maternity apparel provider in each of its leased department locations. The Company operates its leased departments during the same hours and days as the host store and is responsible for replenishment of the merchandise in the leased departments. These leased departments involve the lease partner collecting all of the revenue from the leased department.

Oh Baby by Motherhood

The Company’s Oh Baby by Motherhood collection is available at all Kohl’s stores under an exclusive product and license agreement. The collection features a modern assortment of fashions. As of September 30, 2010, Kohl’s operated approximately 1,089 stores throughout the United States.

International

As of September 30, 2010, it operated 36 Motherhood stores in Canada and a Motherhood Website under MotherhoodCanada.ca. As of September 30, 2010, there were eight of its franchise stores operating in the Middle East. Its Motherhood Maternity product available for sale in maternity shop-in-shops located in Mahindra Retail’s Mom & Me stores, which carry infant and children’s apparel and non-apparel merchandise, as well as maternity apparel in India. As of September 30, 2010, its Motherhood Maternity merchandise is offered in 23 Mom & Me stores in India.

Internet Operations

The Company sells its merchandise on the Internet at its DestinationMaternity.com Website, as well as its brand-specific Websites, such as Motherhood.com. It also sells merchandise through its Canadian Website, MotherhoodCanada.ca. Its DestinationMaternity.com Website contains maternity advice and information, related baby product information and editorial content.

The Company competes with Gap, JCPenney, Old Navy, Target and Wal-Mart.

Founded by Rebecca Matthias as a catalog business

Business Line
Designer and retailer of maternity clothing
Subsidiary
CAVE SPRINGS INC
Advisor
KPMG LLP
IPO date
3/1993
US SIC Code
5621
Company Address
456, North 5th Street

City province or state postal code
19123, PHILADELPHIA, PA
Phone: +1 215 873 2200
Fax: +1 215 625 6924
Country address: UNITED STATES OF AMERICA
Website url: www.motherswork.com