MWRK Mothers Work (MM)

PHILADELPHIA, Aug. 7 /PRNewswire-FirstCall/ -- Mothers Work, Inc. (NASDAQ:MWRK), the world's leading maternity apparel retailer, today announced that net sales for the month of July 2008 decreased 0.6% to $42.0 million from $42.2 million reported for the month of July 2007, and announced that its comparable store sales increased 2.8% for the month of July 2008. The slight decrease in sales versus last year resulted primarily from a decrease in Sears(R) leased department sales, due to the closure of all of the Company's remaining leased departments within Sears stores during the month of June 2008, substantially offset by increases in comparable store sales, sales from the Company's licensed relationship and internet sales. The Company's comparable store sales for July 2008 increased 2.8% (based on 991 locations) versus a comparable store sales decrease of 9.4% (based on 1,388 locations) for July 2007. The comparable store sales decrease of 9.4% for July 2007 was unfavorably impacted by approximately 2 to 3 percentage points due to having four Saturdays in July 2007 compared to five Saturdays in July 2006. During July 2008, the Company opened one store and closed three stores. As of the end of July 2008, the Company operates 759 stores, 294 leased department locations and 1,053 total retail locations, compared to 785 stores, 802 leased department locations and 1,587 total retail locations operated at the end of July 2007. The decrease in leased department locations at the end of July 2008 versus the end of July 2007 reflects the closure of the leased departments within Sears stores as compared to the 508 Sears leased departments operated by the Company at the end of July 2007. Rebecca Matthias, President and Chief Creative Officer of Mothers Work, noted, "We are very pleased to report another month of strong sales performance, despite the continued weak overall economic and retail environment, as we delivered a comparable store sales increase of 2.8%, which was in line with our revised guidance of a 2.0% to 3.5% July comparable store sales increase that we provided in our July 29, 2008 press release. "Looking forward, we continue to feel very good about our product lines and we are optimistic about seeing continued improvement in our sales trend as we anniversary weaker sales results compared to a year ago, and as we continue to refine our merchandise assortments and our in-store merchandise presentation. However, we recognize that we are faced with a continued weak overall economic and retail environment and, thus, we are managing our inventory and expenditures very tightly. We feel strongly that the strategic restructuring and streamlining of our merchandise brands and store nameplates that we announced on July 1, 2008, will help improve our long-term profitability by simplifying our brand structure, reducing our cost structure, and leveraging both our renowned A Pea in the Pod luxury brand and our growing multi-brand Destination Maternity store brand. We continue to focus on developing great maternity product under each of our brands and on improving our sales and profitability performance." Mothers Work is the world's largest designer and retailer of maternity apparel, using its custom TrendTrack(TM) merchandise analysis and planning system as well as its quick response replenishment process to "give the customer what she wants, when she wants it." As of July 31, 2008, Mothers Work operates 1,053 maternity locations, including 759 stores, predominantly under the tradenames Motherhood Maternity(R), A Pea in the Pod(R), Mimi Maternity(R), and Destination Maternity(R), and sells on the web through its DestinationMaternity.com and brand-specific websites. In addition, Mothers Work distributes its Oh Baby by Motherhood(TM) collection through a licensed arrangement at Kohl's(R) stores throughout the United States and on Kohls.com. 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 expected net sales, comparable store sales, other results of operations, liquidity and financial condition, expense savings, 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: our ability to successfully manage our various business initiatives, 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 preferences and spending patterns, demographics and other macroeconomic factors that may impact the level of spending for maternity apparel, overall economic conditions and other factors affecting consumer confidence, 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, ability to hire and develop senior management and sales associates, ability to develop and source merchandise, 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. Mothers Work press releases available through Company News On-Call at http://www.prnewswire.com/comp/581877.html DATASOURCE: Mothers Work, Inc. CONTACT: Judd P. Tirnauer, Senior Vice President & Chief Financial Officer, +1-215-873-2278 Web site: http://www.motherswork.com/ Company News On-Call: http://www.prnewswire.com/comp/581877.html

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