12 761
Fashion Jobs
By
Reuters
Published
May 27, 2010
Download
Download the article
Print
Text size

Dress Barn third quarter beats Wall Street

By
Reuters
Published
May 27, 2010

May 26 (Reuters) - Women's clothing retailer Dress Barn Inc's (DBRN.O) adjusted third-quarter profit scraped past market estimates, driven mainly by sales at its Justice brand.


Photo: www.dressbarn.com

The retailer forecast comparable sales for the fourth quarter to rise in the mid-single digits and kept its 2010 earnings-per-share outlook of between $1.80 and $1.85.

The Justice brand came to Dress Barn in November last year after the retailer bought teen-apparel seller Tween Brands Inc to capture a larger share of the tween girls' apparel market.

Same-store sales for the third quarter grew 14 percent.

"Our comparable store-sales increase in the third quarter was driven both by growth in transactions and average transaction size," Chief Executive David Jaffe said on a conference call with analysts.

Dress Barn, which operates its namesake, Maurices and Justice brands earned $48.0 million, or 59 cents a share, for the quarter ending April 24, compared with $23.1 million, or 37 cents a share, a year ago.

Excluding items, it earned 60 cents a share.

Analysts on average were looking for a profit of 59 cents a share, before items, according to Thomson Reuters I/B/E/S.

Revenue jumped 77 percent to $665.5 million, beating analysts' expectations of $645.8 million.

Sales at the Justice brand accounted for $245.1 million in the quarter, the company said.

On the conference call, Dress Barn said it was growing market share in the Justice brand.

Shares of the Suffern, New York-based company closed at $26.63 Wednesday 26 May on Nasdaq. (Reporting by Vidya Lakshmi in Bangalore; Editing by Unnikrishnan Nair)

© Thomson Reuters 2024 All rights reserved.