Q1 GAAP Diluted EPS of $0.17, a decrease from last year’s Q1 GAAP Diluted EPS of $0.40, and at the low end of prior guidance of $0.17-$0.26 provided on November 17, 2011.

Q1 Non-GAAP Adjusted Diluted EPS of $0.20, a decrease from last year’s Q1 Non-GAAP Adjusted Diluted EPS of $0.44, and at the low end of prior guidance of $0.20-$0.29.

Projected full year Fiscal 2012 GAAP Diluted EPS of $1.26-$1.51, a projected decrease from Fiscal 2011 full year GAAP Diluted EPS of $1.75, and a decrease compared to prior EPS guidance of $1.55-$1.78.

Projected full year Fiscal 2012 Non-GAAP Adjusted Diluted EPS of $1.37-$1.62, a projected decrease from Fiscal 2011 full year Non-GAAP Adjusted Diluted EPS of $1.87, and a decrease compared to prior Adjusted Diluted EPS guidance of $1.66-$1.89.

Projected full year Fiscal 2012 free cash flow (defined as net cash provided by operating activities minus capital expenditures) of approximately $20 to $26 million, a projected increase from Fiscal 2011 free cash flow of $9.2 million.

GAAP net income for the first quarter of fiscal 2012 was $2.3 million, a decrease compared to GAAP net income of $5.2 million for the first quarter of fiscal 2011. GAAP diluted earnings per share for the first quarter of fiscal 2012 was $0.17, a decrease compared to $0.40 for the first quarter of fiscal 2011. This first quarter fiscal 2012 GAAP earnings performance was at the low end of the Company’s guidance, provided in its November 17, 2011 press release, of GAAP diluted earnings per share of between $0.17 and $0.26.

Non-GAAP adjusted net income (before stock-based compensation expense and loss on extinguishment of debt) for the first quarter of fiscal 2012 was $2.6 million, a decrease from the comparably adjusted non-GAAP net income of $5.7 million for the first quarter of fiscal 2011. Non-GAAP adjusted diluted earnings per share for the first quarter of fiscal 2012 was $0.20 per share, a decrease from the comparably adjusted non-GAAP diluted earnings per share of $0.44 for the first quarter of fiscal 2011. This first quarter fiscal 2011 non-GAAP adjusted earnings performance was at the low end of the Company’s guidance, provided in its November 17, 2011 press release, of non-GAAP adjusted diluted earnings per share of between $0.20 and $0.29.

Adjusted EBITDA was $8.3 million for the first quarter of fiscal 2012, a decrease compared to the $13.3 million of Adjusted EBITDA for the first quarter of fiscal 2011. Adjusted EBITDA is defined in the financial tables at the end of this press release.

Net sales for the first quarter of fiscal 2012 increased 0.7% to $136.4 million from $135.4 million for the first quarter of fiscal 2011. The increase in sales for the first quarter of fiscal 2012 compared to fiscal 2011 resulted primarily from increased sales due to the expansion of the Company’s maternity apparel leased department relationship with Macy’s®, partially offset by: (1) a decrease in comparable sales, (2) decreased sales related to the Company’s continued efforts to close underperforming stores, and, to a much lesser extent, (3) a decrease in sales due to the closure of all of the Company’s remaining leased departments within Kmart® stores during the month of October 2011. The net sales of $136.4 million for the first quarter were below the Company’s guidance range of $138 to $142 million provided in November 2011.

Comparable sales (which include Internet sales) for the first quarter of fiscal 2012 decreased 4.1% versus a comparable sales increase of 2.1% for the first quarter of fiscal 2011. The comparable sales decrease of 4.1% during the first quarter of fiscal 2012 was below the Company’s guidance range of a decrease between 0.5% and 3.5% provided in November 2011. The Company estimates that the cannibalization impact of the leased department expansion with Macy’s in February 2011 hurt its first quarter comparable sales by between 1 and 2 percentage points. The Company’s Internet sales, which are included in the Company’s reported comparable sales, increased 30% for the first quarter of fiscal 2012, on top of an 18% increase in the first quarter of fiscal 2011.

Gross margin for the first quarter of fiscal 2012 was 51.0%, a decrease versus last year’s first quarter gross margin of 53.9%, due primarily to lower merchandise margin driven by higher promotional activity, higher markdowns and higher product costs. Gross margin for the first quarter was somewhat lower than planned, due to price promotional activity and additional markdowns taken to spur sales and manage inventory.

The Company made an optional $5.0 million prepayment on its Term Loan in the first quarter of fiscal 2012.

On January 25, 2012 the Company announced that its Board of Directors declared a regular quarterly cash dividend of $0.175 per share, payable March 28, 2012 to stockholders of record at the close of business on March 7, 2012.

On March 1, 2011, the Company effected a two-for-one stock split in the form of a stock dividend. All share and per share amounts included in this first quarter fiscal 2012 earnings release give effect to the stock split and have been adjusted retroactively for all periods presented.

Store Openings (1)

Total

Multi-Brand Store Openings

Store Closings (1)

Total

Closings Related to Multi-Brand Store Openings

Period End Retail Location Count (1)

Stores

Leased Department Locations

Total Retail Locations (1)

International Franchised Location Openings

Stores

Shop-in-Shop Locations

Total International Franchised Location Openings

International Franchised Location Closings

Stores

Shop-in-Shop Locations

Total International Franchised Location Closings

Period End International Franchised Location Count

Stores

Shop-in-Shop Locations

Total International Franchised Locations

Net sales in the $545 to $556 million range, representing projected sales between flat and a 1.9% increase versus fiscal 2011 net sales of $545.4 million. The planned flat to slightly increased sales for fiscal 2012 versus fiscal 2011 is driven primarily by: (1) the additional four to five months of sales related to the expansion into 517 additional Macy’s locations in the second quarter of fiscal 2011; and (2) a projected comparable sales change of between a decrease of 0.3% to an increase of 2.0%, with comparable sales projected to be stronger in the second half of the year versus the first half of the year, as we are able to benefit from our merchandising initiatives; partially offset by (3) decreased sales related to our continued efforts to close underperforming stores and, to a lesser extent (4) the closure of our remaining 291 Kmart leased department locations during October 2011. The Company projects the cannibalization impact of the Macy’s leased department expansion to hurt fiscal 2012 comparable sales by approximately 1 percentage point.

Gross margin for fiscal 2012 is expected to decrease between 70 and 120 basis points versus fiscal 2011, with lower year-over-year gross margin for the first half of fiscal 2012, partially offset by somewhat improved year-over-year gross margin in the second half of the year.

Total selling, general and administrative expenses (SG&A) are planned to be higher than fiscal 2011 in dollar terms and essentially equal to or slightly higher than fiscal 2011 as a percentage of net sales. The projected SG&A increase for the full year primarily results from additional operating expenses resulting from the full year impact of the Macy’s leased department expansion in the second quarter of fiscal 2011, as well as other inflationary expense increases and targeted expense increases to help drive sales, partially offset by lower incentive compensation and continued overall tight management of expenses.

Operating income in the $28.6 to $34.1 million range, a projected decrease compared to fiscal 2011 operating income of $38.2 million.

GAAP diluted earnings per share of between $1.26 and $1.51 per share for fiscal 2012, a projected decrease compared to earnings of $1.75 per share (diluted) for fiscal 2011.

Non-GAAP adjusted diluted earnings per common share (before restructuring and other charges, stock-based compensation expense, and loss on extinguishment of debt) is projected to be between $1.37 and $1.62 per share for fiscal 2012, a projected decrease versus non-GAAP adjusted diluted earnings per share of $1.87 per share for fiscal 2011.

Adjusted EBITDA in the $45.5 to $51.0 million range, a projected decrease compared to the fiscal 2011 Adjusted EBITDA of $54.4 million.

Open 5 to 11 new stores during the year, including 5 to 9 new multi-brand Destination Maternity stores, and close approximately 30 to 40 stores, with 9 to 16 of these planned store closings related to openings of new Destination Maternity stores.

Capital expenditures planned at between $11.5 and $14.0 million compared to fiscal 2011 capital expenditures of $12.3 million. After deducting projected tenant construction allowance payments to us from store landlords, the Company expects net cash outlay for capital projects to be between $9.0 million and $11.0 million, compared to $9.1 million in fiscal 2011.

Inventory at fiscal 2012 year end planned to be approximately 2-6% lower (approximately $2 to $5 million lower) than fiscal 2011 year end.

Given these assumptions, the Company plans to generate free cash flow (defined as net cash provided by operating activities minus capital expenditures) of approximately $20 to $26 million for the full year fiscal 2012, a projected increase from fiscal 2011 free cash flow of $9.2 million. Based on the Company’s current quarterly dividend rate of $0.175 per share, the dividend will use approximately $9.3 million of cash flow for fiscal 2012.

Net sales in the $133 to $137 million range.

A projected comparable sales change of between a decrease of 1% to an increase of 3%, on a reported basis. It is important to note that we expect our reported comparable sales for the second quarter of fiscal 2012 to benefit by approximately 2 percentage points due to: (1) having an extra day in the quarter versus last year, due to 2012 being a leap year; and (2) the benefit of a days shift in the calendar month of March compared to last year, with an extra Friday and Saturday compared to last March, and one less Tuesday and Wednesday compared to last March. Adjusting out these “calendar shift” benefits, our days-adjusted projected comparable sales for the second quarter is between a decrease of 3% and an increase of 1%. Also, we project the cannibalization impact of the Macy’s leased department expansion to hurt our second quarter comparable sales by approximately 1 percentage point.

GAAP diluted earnings per common share of between $0.21 and $0.31 per share, versus the GAAP diluted earnings per share of $0.43 for the second quarter of fiscal 2011.

Non-GAAP adjusted diluted earnings per common share (before stock-based compensation expense and loss on extinguishment of debt) of between $0.24 and $0.34 per share, versus comparably adjusted non-GAAP diluted earnings per share of $0.45 for the second quarter of fiscal 2011.”

Net sales

Cost of goods sold

Gross profit

Gross margin

Selling, general and administrative expenses (SG&A)

SG&A as a percentage of net sales

Store closing, asset impairment and asset disposal expenses

Operating income

Interest expense, net

Loss on extinguishment of debt

Income before income taxes

Income tax provision

Net income

Net income per share – basic (1)

Average shares outstanding – basic (1)

Net income per share – diluted (1)

Average shares outstanding – diluted (1)

Supplemental information:

Net income, as reported

Add: stock-based compensation expense, net of tax

Add: loss on extinguishment of debt, net of tax

Adjusted net income, before stock-based compensation expense and loss on extinguishment of debt

Adjusted net income per share – diluted, before stock-based compensation expense and loss on extinguishment of debt (1)

ASSETS

Current assets:

Cash and cash equivalents

Trade receivables, net

Inventories

Deferred income taxes

Prepaid expenses and other current assets

Total current assets

Property, plant and equipment, net

Other assets

Total assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Line of credit borrowings

Current portion of long-term debt

Accounts payable

Accrued expenses and other current liabilities

Total current liabilities

Long-term debt

Deferred rent and other non-current liabilities

Total liabilities

Stockholders’ equity

Total liabilities and stockholders’ equity

Cash and cash equivalents

Inventories

Property, plant and equipment, net

Line of credit borrowings

Total debt

Net cash (debt) (1)

Stockholders’ equity

Operating Activities

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Stock-based compensation expense

Loss on impairment of long-lived assets

Loss on disposal of assets

Loss on extinguishment of debt

Deferred income tax (benefit) provision

Amortization of deferred financing costs

Changes in assets and liabilities:

Decrease (increase) in:

Trade receivables

Inventories

Prepaid expenses and other current assets

Other non-current assets

Increase (decrease) in:

Accounts payable, accrued expenses and other current liabilities

Deferred rent and other non-current liabilities

Net cash provided by operating activities

Investing Activities

Withdrawal from grantor trust

Capital expenditures

Purchase of intangible assets

Net cash used in investing activities

Financing Activities

Decrease in cash overdraft

Repayment of long-term debt

Withholding taxes on stock-based compensation paid in connection with repurchase of common stock

Cash dividends paid

Proceeds from exercise of stock options

Excess tax benefit from exercise of stock options and restricted stock vesting

Net cash used in financing activities

Effect of exchange rate changes on cash and cash equivalents

Net Increase in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning of Period

Cash and Cash Equivalents, End of Period

Net income

Add: income tax provision

Add: interest expense, net

Add: loss on extinguishment of debt

Operating income

Add: depreciation and amortization expense

Add: loss on impairment of long-lived assets

Add: loss on disposal of assets

Add: stock-based compensation expense

Adjusted EBITDA (1)

Net sales

Operating income margin (operating income as a percentage of net sales)

Adjusted EBITDA margin (adjusted EBITDA as a percentage of net sales)

DESTINATION MATERNITY CORPORATION AND SUBSIDIARIES

Supplemental Financial Information (Continued)

Net sales

Cost of goods sold

Gross profit

Gross margin

Selling, general and administrative expenses (SG&A)

SG&A as a percentage of net sales

Store closing, asset impairment and asset disposal expenses

Restructuring and other charges

Operating income

Interest expense, net

Loss on extinguishment of debt

Income before income taxes

Income tax provision

Net income

Net income per share – basic

Average shares outstanding – basic

Net income per share – diluted

Average shares outstanding – diluted

Supplemental information:

Net income

Add: restructuring and other charges, net of tax

Add: stock-based compensation expense, net of tax

Add: loss on extinguishment of debt, net of tax

Adjusted net income, before restructuring and other charges, stock-based compensation expense, and loss on extinguishment of debt

Adjusted net income per share – diluted, before restructuring and other charges, stock-based compensation expense, and loss on extinguishment of debt

DESTINATION MATERNITY CORPORATION AND SUBSIDIARIES

Supplemental Financial Information (Continued)

Net income

Add: income tax provision

Add: interest expense, net

Add: loss on extinguishment of debt

Operating income

Add: depreciation and amortization expense

Add: loss on impairment of long-lived assets

Add: loss on disposal of assets

Add: stock-based compensation expense

Adjusted EBITDA

Add: restructuring and other charges

Adjusted EBITDA before restructuring and other charges

Net sales

Operating income margin (operating income as a percentage of net sales)

Adjusted EBITDA margin (adjusted EBITDA as a percentage of net sales)

Adjusted EBITDA margin before restructuring and other charges (adjusted EBITDA before restructuring and other charges as a percentage of net sales)

Net income per share – diluted (1)

Add: per share effect of restructuring and other charges

Add: per share effect of stock-based compensation expense

Add: per share effect of loss on extinguishment of debt

Adjusted net income per share – diluted, before restructuring and other charges, stock-based compensation expense, and loss on extinguishment of debt (1)

DESTINATION MATERNITY CORPORATION AND SUBSIDIARIES

Supplemental Financial Information (Continued)

Net income per share – diluted (1)

Add: per share effect of stock-based compensation expense

Adjusted net income per share – diluted, before stock-based compensation expense (1)

Net income

Add: income tax provision

Add: interest expense, net

Add: loss on extinguishment of debt

Operating income

Add: depreciation and amortization expense

Add: loss on impairment of long-lived assets and loss on disposal of assets

Add: stock-based compensation expense

Adjusted EBITDA

Add: restructuring and other charges

Adjusted EBITDA before restructuring and other charges