The company has expanded its license agreements beyond Kohl's and Sears and is converting some of its Macy's leased departments from its Motherhood Maternity brand to Mimi Maternity departments that carry both Motherhood and Mimi brands. In addition, it recently implemented agreements with the Boscov's and Gordmans regional department store chains.

Under the agreements, "we pay a percentage of sales and provide some shopkeeping labor," Krell said, although, unlike Sears, the Boscov's and Gordmans units do not have their own brands. Mothers Work now has departments in 50 Boscov's and 10 Gordmans. The latter will roll out to all 50 Gordman units by mid- to late-February, he said.

In all, the company plans to open between 15 and 20 new stores in 2007 and close between 40 and 55. Many of the closing are related to the opening of multi-brand units. There will also be between 100 and 125 new licensed department locations in 2007.

"We are optimistic about building our strong fiscal 2006 results and delivering even stronger financial results for fiscal 2007," Mathias said. The company raised its earlier 2007 net sales forecast of from between $602 million and $620 million to between $615 million and $627 million.

MWRK stock rallied on the Nasdaq to close at $57.26 a share on Nov. 21, following release of the quarterly results. That represented a 21.7%-increase for the day and lifted shares to a new 52-week high and a stunning increase from the 52-week low of $8.15 a share, which occurred nearly a year ago.