Market Overview

Destination Maternity Corporation Provides Update on Corporate Restructuring


Focus on Rationalizing Product Mix and Reducing Costs

Expects Net Savings of $1.2 - $1.4 Million in FY'19

Destination Maternity Corporation (NASDAQ:DEST) (the "Company")
announced today a restructuring of the Company's corporate product and
sourcing teams as part of its efforts to reduce costs following ongoing
rationalization of the Company's overall product mix and improvements in
inventory efficiency. These efforts are expected to yield net cost
savings of approximately $1.2 million - $1.4 million in fiscal year
2019. This restructuring is part of the initial stages of Destination
Maternity's broader strategic plan focused on improving its long-term
growth and profitability.

Marla Ryan, CEO of Destination Maternity commented, "Recognizing the
need to focus our product assortment, rationalize costs and improve
inventory efficiency, we completed an in-depth review of our product
offer, overall inventory levels and distribution channels. Through this
effort, we identified profitable solutions to improve our product mix
and reduce inventory as we begin 2019. We also made the difficult
decision to reduce headcount in our product and sourcing divisions to
better rationalize resources and costs across the organization.

"While these actions are never easy, the changes we are implementing
will enable us to become a leaner and more nimble organization. They
will also allow us to reallocate more of our resources on becoming a
digital flagship serving the needs of today's millennial moms and
moms2be. While there is certainly more work ahead of us, I am encouraged
by what we have achieved to date and the opportunities ahead."

Destination Maternity expects the restructuring to result in a one-time
severance charge of approximately $0.5 million during the third quarter
of 2018.

Forward-Looking Statements

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 release or made from time to time by management of the
Company, including those regarding various business and financing
initiatives, involve risks and uncertainties, and are subject to change
based on various important factors. The following factors, among others,
could cause actual results to differ materially from those expressed or
implied in any of the forward-looking statements in this press release:
the strength or weakness of the retail industry in general and of
apparel purchases in particular; our ability to successfully manage our
various business initiatives; our ability to enter into definitive
documentation for the refinancing facility with Bank of America in the
timeframe expected or at all; our ability to successfully manage our
real estate relationships; overall economic conditions and other factors
affecting consumer confidence, demographics and other macroeconomic
factors that may impact the level of spending for apparel (such as
fluctuations in pregnancy rates and birth rates), availability of
suitable store locations, our ability to develop and source merchandise
and other factors set forth in the Company's periodic filings with the
Securities and Exchange Commission. Although it is believed that the
expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will prove
to have been correct and persons reading this release are therefore
cautioned not to place undue reliance on these forward-looking
statements which speak only as at the date of this release. The Company
assumes no obligation to update or revise the information contained in
this release (whether as a result of new information, future events or
otherwise), except as required by applicable law.

About Destination Maternity

Destination Maternity Corporation (NASDAQ:DEST) is the world's largest
designer and retailer of maternity apparel. As of August 4, 2018,
Destination Maternity operates 1,114 retail locations in the United
States, Canada and Puerto Rico, including 480 stores, predominantly
under the trade names Motherhood Maternity®, A Pea in the Pod® and
Destination Maternity®, and 634 leased department locations. The Company
also sells merchandise on the web primarily through its brand-specific
websites, and, as well as through its website. Destination Maternity has
international store franchise and product supply relationships in the
Middle East, South Korea, Mexico, Israel and India. As of August 4,
2018, Destination Maternity has 188 international franchised locations,
including 11 standalone stores operated under one of the Company's
nameplates and 177 shop-in-shop locations.

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