Women's apparel retailer Dress Barn (NASDAQ: DBRN) took its turn in the earnings confessional this morning, reporting a 38% increase in fourth-quarter profit. The company posted a profit of $33.6 million, or 48 cents per share, up from $24.4 million (35 cents) in the year-ago period. Excluding unique items, DBRN would have earned 45 cents per share, topping analysts' expectations of 42 cents. Sales were up 11% during the reporting period to $379.9 million - above the consensus view of $377.1 million - and same-store sales grew by 5%.
DBRN officials were realistic about the current economic environment, however. While the trendier maurices brand has continued to post strong sales, economic concerns have indirectly resulted in greater-than-expected inventory levels at the eponymous Dressbarn chain. As a result, first-quarter markdowns have increased. For fiscal 2008, Dress Barn expects to earn between $1.40 and $1.50 per share, below analysts' outlook of $1.54 per share (before items). Same-store sales are expected to rise 3% to 4%.
In early trading, DBRN shares have rallied 5.6%. The stock has subsequently gapped higher above its 10-day and 20-day moving averages, which have worked in tandem to guide the shares lower since early June. What the stock has yet to overcome, however, is its 10-week moving average, which marked DBRN's intraday high so far today. This descending intermediate-term trendline has been acting as resistance for the past three months, and seems intent on continuing to challenge the shares.
Prior to Dress Barn's last earnings report, I'd enjoyed a trip to a family wedding in New Orleans, at which many of my female relatives, young and ... not as young ... were decked out in cute Dress Barn fashions. I finally headed to the store myself and while the particular location I visited was out of my size in many items, I did find sensible but fashionable business-casual items for a very reasonable price. In fact, I think I got a blouse, dress pants, and a skirt all for under a C-note. Not bad at all, but would you really expect couture-like prices from a shop with "Barn" in its name?
Beth Gaston Moon is an analyst at Schaeffer's Investment Research. She does not own any Dress Barn shares.
Prior to Dress Barn's last earnings report, I'd enjoyed a trip to a family wedding in New Orleans, at which many of my female relatives, young and ... not as young ... were decked out in cute Dress Barn fashions. I finally headed to the store myself and while the particular location I visited was out of my size in many items, I did find sensible but fashionable business-casual items for a very reasonable price. In fact, I think I got a blouse, dress pants, and a skirt all for under a C-note. Not bad at all, but would you really expect couture-like prices from a shop with "Barn" in its name?
Beth Gaston Moon is an analyst at Schaeffer's Investment Research. She does not own any Dress Barn shares.
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Reader Comments (Page 1 of 1)
10-19-2007 @ 1:02AM
Mary said...
Ladies, I must warn you.... Do not use your Dress Barn credit cards. If you are one day late with a payment they add ten dollors a month to your bill even if the balance is paid in full. No wonder they are financially secure. They take our money for nothing. NOTHING........ Then they send it to a collection agency and ruin your credit rating.