PHILADELPHIA, May 26 /PRNewswire-FirstCall/ -- Destination Maternity Corporation , the world's leading maternity apparel retailer, today announced that the Compensation Committee of the Company's Board of Directors granted an inducement stock option to purchase up to 70,000 shares of common stock to Emilia Fabricant, its newly appointed President, on May 24, 2010.
The stock option is a non-qualified stock option and has an exercise price of $26.88 per share, which was the closing stock price of the Company's common stock on the NASDAQ Global Market on the business day immediately preceding the grant date. The option vests 20% per year over five years with the first portion of the award vesting on the first anniversary of the date of grant, subject to Ms. Fabricant's continued service to Destination Maternity. The stock option has a maximum term of ten (10) years.
The stock option was granted as an inducement material to Ms. Fabricant's entering into employment with Destination Maternity in accordance with NASDAQ Listing Rule 5635(c)(4).
Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel. In the United States and Canada, as of April 30, 2010, Destination Maternity operates 1,686 retail locations, including 708 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. 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 changes in management, results of operations, 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 economic recovery of the retail industry in general and of 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 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, anticipated 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, goodwill impairment charges, 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, 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.
Destination Maternity Corporation
CONTACT: Judd P. Tirnauer, Senior Vice President & Chief Financial
Officer of Destination Maternity Corporation, +1-215-873-2278
Web Site: http://www.destinationmaternity.com/
