Dress Barn's Sales Soar

SUFFERN, NY-Strong sales sent first quarter profits soaring to a record 35% at women’s clothing retailer Dress Barn Inc., prompting the locally-based chain to raise its yearly profit outlook.

The company, which operates nearly 800 stores nationwide under the Dress Barn, Dress Barn Woman and Maurices flags, reported that net income for the period ended Oct. 28, 2006 increased to a record $27.4 million, or 40 cents per share, 3 cents higher than analysts had expected. Net income for the same period during 2005 was $20.4 million, or 32 cents per share. Sales also jumped 12% during the quarter, rising to a record $358.4 million from $318.9 million a year ago.

Same-store sales increased 7% in the quarter, buoyed by a 10% gain at Dress Barn stores and a 2% increase at the firm’s Maurices’ outlets, which sells casual and work clothing, mainly in smaller markets. It was the 11th consecutive quarter of comparable store sales increase, President and Chief Executive Officer David Jaffe says.

“Our business continues to show strong momentum despite increasingly difficult comparisons,” Jaffe notes. “We are very pleased to have again delivered record sales and earnings. This strong start positions us well for the year ahead, and we are increasingly confident in our ability to achieve our financial objectives.”

The solid, across-the-board performance prompted the company to upgrade its full year earning guidance to between $1.30 and $1.35. Earlier, company officials had estimated earnings of $1.25 to $1.30 per share, based on anticipated same-store sales growth of about 4% for the year.

Dress Barn also reported that sales for the period ended Nov. 25, 2006 were up 9% to $108.4 million compared to $99.3 million for the same period last year while comparable store sales increased 4% in November.