Dress Barn (DBRN) Shares Move Up Over 7% in Early Trading

May 29, 2008 11:15 AM EDT

Dress Barn (Nasdaq: DBRN) shares gain $1.03 (+7.35%) after reporting Q3 EPS of $0.34 (ex-items), 8 cents better the consensus estimate.

The Company reaffirms its previously announced guidance for fiscal 2008 with earnings per diluted share in the range of $1.05 to $1.10.

David R. Jaffe, President and Chief Executive Officer stated, “We were pleased to have navigated a difficult retail environment during the third quarter. While the sales results from our dressbarn stores reflect the continued slowdown in consumer spending, we controlled our inventory and saw strong merchandise margins. In addition, we were able to carefully control our expenses, which underlines the flexibility of our operations. Perhaps most importantly, maurices continued to outperform our expectations and experienced significant operating income growth during the quarter.�

“While the quarter exceeded our earnings expectations, we remain concerned about a potential further deterioration of the tough retail environment and currently expect an increase in the promotional competitive landscape. We will continue to manage our business conservatively and prudently during these uncertain times. We believe our strong balance sheet gives us the financial flexibility for growth and success when the economy improves.�

In the past 52 weeks, shares have fallen from $23 per share down to approx. $9, but have recently rebounded.

The Dress Barn, Inc. and its subsidiaries operate a chain of women's apparel specialty stores principally under the names ‘dressbarn', ‘dressbarn woman', and ‘maurices' in the United States.

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