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Dress Barn (NASDAQ: DBRN) shares are trading nearly 6% higher this afternoon on the heels of its strong third-quarter earnings release. The retailer, which also parents the Maurice's chain of trendy apparel, said quarterly income reached $23.1 million, or 33 cents per share, up from $20 million (29 cents) last year. Sales were 6% higher at $347.9 million. Same-store sales rose 2% during the three-month period, while May same-store sales surged 10%. Results were mixed in terms of Wall-Street estimates; analysts were expecting per-share earnings of 31 cents on $350 million in revenue.
The future looks bright, as Dress Barn officials lifted the company's full-year guidance to a range of $1.38 to $1.40 per share, up from previous targets of $1.30 to $1.35 per share. Analysts are currently targeting per-share earnings of $1.33.
Last weekend at my cousin's wedding, Dress Barn was the talk of the rehearsal dinner. My 61 year-old mother, 68-year-old aunt, and the 27-year-old bride (my now cousin-in-law) were all outfitted in super-cute (age-appropriate) threads from the discount retailer. All bragged about the low prices - my aunt had picked up two skirts, a dress, and three blouses for about $150. I was simply shocked by how one store had produced such successful shopping excursions for all three ladies, despite their range of ages and tastes.
I've never been to a Dress Barn before, I must admit - I think I was off put by the name, as I envisioned rifling for my latest business-casual outfit through a trough of hay. But now I've learned I've apparently missed the boat (and needed a 68 year old to clue me into the latest trend). With three more weddings and rehearsal dinners to attend in the next four months, affordable dress clothes are definitely on my list, and Dress Barn will be one of my shopping stops.
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
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