Dress Barn (NASDAQ: DBRN), a retailer that specializes in casual fashion, issued results for the fourth quarter on Wednesday after the bell. Net sales increased 4%, and adjusted income came in at 39 cents per diluted share versus 34 cents per diluted share one year ago.

The growth rates weren't all that notable, but Dress Barn, which counts Kohl's (NYSE: KSS) as a colleague, beat estimates, according to Reuters. The call was for 37 cents per share. The top line essentially met expectations.

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%.

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.

MOST NOTEWORTHY: Three consumer financial services companies, CBS Corp (CBS) and Dress Barn, Inc (DBRN) were today's noteworthy initiations:

• Calyon initiated three consumer financial services companies:
  
• American Express Co (NYSE: AXP) was initiated with a Buy rating and $67 target, based on valuation.
  
• Capital One Financial Corp (NYSE: COF) was initiated with an Add rating, as the firm believes shares should be valued in-line with comparable banks, but feels the best investors should hope for is $90/share by year-end given the current market conditions.
  
• MasterCard Inc (NYSE: MA) was started with an Add rating and $123 target, as the firm believes shares should perform well in an environment in which concerns over credit risk remain paramount.

• CBS Corp (NYSE: CBS) was initiated with an Outperform rating at Wachovia, which expects accelerated growth in 2008.

• CIBC started Dress Barn Inc (NASDAQ: DBRN) with a Sector Performer rating, citing valuation.

OTHER INITIATIONS:

• Lazard initiated Terremark Worldwide, Inc (AMEX: TWW) with a Buy rating and $10 target.

• BB&T assumed coverage of Aaron Rents, Inc (NYSE: RNT) with a Buy rating and $30 target.

• Merrill Lynch reinstated Freeport-McMoRan Copper & Gold Inc (NYSE: FCX) with a Neutral rating.

• Jefferies started NYMEX Holdings, Inc (NYSE: NMX) with a Hold rating and $140 target on valuation.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MOST NOTEWORTHY: Hansen Natural (HANS) and SAP AG (SAP) were the notable initiations today:

• JP Morgan initiated Hansen Natural Corp. (NASDAQ:HANS) with an Overweight rating and $44 target and was added to the Focus List; the firm believes Hansen is well-positioned to benefit in the rapid energy drink category, has an attractive business model and, based on its growth potential, could be an attractive acquisition target.
• Bank of America resumed their coverage of SAP AG (NYSE:SAP) with a Neutral rating and $55 target, seeing few catalysts to create an upside to consensus estimates.

OTHER INITIATIONS:

• Roth Capital initiated Kana Software Inc. (NASDAQ:KANA) with a Buy rating and $4 target, explaining that demand environment for the customer service segment of CRM is attractive, as many vendors targeting the segment are reporting strong results.
• First Albany initiated Dress Barn Inc. (NASDAQ:DBRN) with a Buy rating and $28 target, and is positive on the company's momentum, value pricing and marketing efforts.
• JP Morgan started Hain Celestial Group Inc. (NASDAQ:HAIN) with an Overweight rating; they expect high-teen annual EPS growth and believe shares will outperform the group.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Before the opening bell, Melly Alazraki touched on some of the retail sales figures and reactions and I thought it might be interesting to update the graph I posted on Monday. The chart below shows the top and bottom performing stocks from the close on Wednesday, November 22.



When we looked at this data earlier in the week, we saw that the bulk of the returns were flat to lower. With the new sales figures now rolling in, along with some earnings reports, we see some stocks are starting to emerge as winners. DSW Inc. (NYSE:DSW), Dress Barn (NASDAQ:DBRN), and Hot Topic (NASDAQ:HOTT) are currently showing gains of at least five percent from where they stood ahead of Black Friday. DSW, the strongest stock on my list, reported better-than-expected earnings of 36 cents per share last night. The shares gapped higher on the open to tag a new high.

The bottom of the graph shows that Christopher & Banks Corp (NYSE:CBK), Bebe Stores (NASDAQ:BEBE), and Coldwater Creek (NASDAQ:CWTR) appear to be struggling through this holiday season.

When you look past the specialty stocks above, it seems that there is still an overall downside bias in the mainstay retail area. Well known names such as Amazon (NASDAQ:AMZN), Federated Department Stores (NYSE:FD), Sears Holding (NASDAQ:SHLD), Wal-Mart (NYSE:WMT), Best Buy (NYSE:BBY), The Gap (NYSE:GPS), Target (NYSE:TGT), and Home Depot (NYSE:HD) are still trading below their pre-Black-Friday levels.

Nick Perry is an analyst with Schaeffer's Investment Research.