EX-99 3 d0703release.txt PRESS RELEASE THE DRESS BARN INC. EXHIBIT 99.1 www.dressbarn.com NEWS RELEASE CONTACT: ARMAND CORREIA SENIOR VICE PRESIDENT & CFO (845) 369-4600 FOR IMMEDIATE RELEASE SEPTEMBER 17, 2003 THE DRESS BARN, INC. REPORTS FISCAL FOURTH QUARTER AND YEAR END RESULTS SUFFERN, NY - SEPTEMBER 17, 2003 - The Dress Barn, Inc. (NASDAQ - DBRN), one of the nation's leading women's specialty retailers offering quality career and casual fashion apparel at value prices, today reported financial results for its fourth quarter and fiscal year ended July 26, 2003. Net sales for the quarter ended July 26, 2003 increased 1% to $188.1 million compared to $186.7 million for the same quarterly period last year. Same store sales decreased 2%. As previously reported, fourth quarter earnings were impacted by a $32 million litigation charge, resulting in an after-tax earnings effect of $20.5 million. This charge resulted in a reported net loss of $8 million, or $0.27 loss per share, compared to net earnings of $13.4 million, or $0.36 per share, for the same quarterly period last year. The Company continues to strongly believe there is no merit for the jury award and is vigorously pursing an appeal. Quarterly net earnings, excluding the effect of this charge, would have been $12.5 million or $0.42 per share, which was favorably impacted by the successful 8 million share Dutch Auction tender offer completed during the year. Net sales for the fiscal year ended July 26, 2003 were $707.1 million compared to the prior year's $717.1 million. Same store sales decreased 4.6% during this period. Net earnings for the fiscal year were $8.0 million, or $0.25 per share. This compares to net earnings of $37.9 million, or $1.01 per share last year. Fiscal year net earnings, excluding the effect of the litigation charge, would have been $28.5 million, or $0.89 per share. This year's net earnings per share were favorably impacted by $0.05 per share as a result of the Dutch Auction tender offer. Elliot S. Jaffe, Chairman of the Board, commented: "Our fourth quarter, even after excluding the litigation charge, was disappointing, but did show improvement in both sales and earnings performance over the previous quarters. As a result, we are cautiously optimistic heading into the fall season, when sales comparisons become easier." "The retail climate remains challenging. We will be using conservative management of inventories and costs. Financially, our strong and highly liquid balance sheet gives us the strength and staying power to withstand any further economic weakness, as we continue to grow our business." As of July 26, 2003, the Company operated 772 stores in 44 states. As previously announced, The Company will host a conference call on Thursday, September 18, 2003 at 3:00 p.m. (Eastern) to review its fiscal fourth quarter and year end financial results. The conference call will be webcast by CCBN and can be accessed at The Dress Barn, Inc.'s web site at www.dressbarn.com. The dial-in number is (617) 786-2960 and the pass code is 19417493. A replay of the call will be available until October 1, 2003 by dialing (617) 801-6888, the pass code is 94205948. Statements and comments made in this press release and during the scheduled conference call not historical in nature are "forward-looking statements", within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. Such factors may be described in our filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended July 27, 2002 and Form 10-Q for the fiscal quarter ended April 26, 2003. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized. The conference call will be recorded on behalf of The Dress Barn, Inc. and consists of copyrighted material. It may not be re-recorded, re-produced, transmitted or re-broadcast, in whole or in part, without the Company's express written permission. Accessing the call or the rebroadcast represents consent to these terms and conditions. Participation in the call serves as consent to having any comments or statements made appear on any transcript, broadcast or rebroadcast of this call. The Dress Barn, Inc. and Subsidiaries Condensed Consolidated Statements of Earnings Dollars in thousands except per share amounts Thirteen Weeks Ended ------------------------------------------ July 26, July 27, 2003 2002 ------------- -------------- Net sales $188,131 100.0% $186,697 100.0% Cost of sales, including occupancy and buying costs 115,853 61.6% 112,431 60.2% ------------- -------------- Gross profit 72,278 38.4% 74,266 39.8% Selling, general and administrative expenses 49,795 26.5% 49,177 26.3% Depreciation expense 3,631 1.9% 5,606 3.1% Litigation charge 32,000 17.0% --- ------------- -------------- Operating (loss) income (13,148) (7.0%) 19,483 10.4% Interest income- net 277 0.2% 1,482 0.8% Other income 381 0.2% --- ------------- -------------- (Loss) earnings before income (12,490) (6.6%) 20,965 11.2% taxes Income tax (benefit) expense (4,498) (2.4%) 7,547 4.0% ------------- -------------- Net (loss) earnings ($7,992) (4.2%) $13,418 7.2% ============= ============== (Loss) earnings per share: Basic: ($0.27) $0.37 ============= ============== Diluted: ($0.27) $0.36 ============= ============== Average shares outstanding Basic: 29,165 36,465 ------------- -------------- Diluted: 29,851 37,514 ------------- -------------- The Dress Barn, Inc. and Subsidiaries Condensed Consolidated Statements of Earnings Dollars in thousands except per share amounts Fifty-Two Weeks Ended ------------------------------------------ July 26, July 27, 2003 2002 ------------- -------------- Net sales $707,121 100.0% $717,136 100.0% Cost of sales, including occupancy and buying costs 453,178 64.1% 453,428 63.2% ------------- -------------- Gross profit 253,943 35.9% 263,708 36.8% Selling, general and administrative expenses 192,466 27.2% 186,375 26.0% Depreciation expense 20,856 3.0% 23,508 3.3% Litigation charge 32,000 4.5% --- ------------- -------------- Operating income 8,621 1.2% 53,825 7.5% Interest income- net 3,168 0.5% 5,458 0.8% Other income 779 0.1% --- ------------- -------------- Earnings before income taxes 12,568 1.8% 59,283 8.3% Income tax expense 4,524 0.7% 21,342 3.0% ------------- -------------- Net earnings $8,044 1.1% $37,941 5.3% ============= ============== Earnings per share: Basic: $0.26 $1.04 ============= ============== Diluted: $0.25 $1.01 ============= ============== Average shares outstanding Basic: 31,219 36,495 ------------- -------------- Diluted: 31,942 37,516 ------------- -------------- The Dress Barn, Inc. and Subsidiaries Condensed Consolidated Balance Sheets Dollars in thousands July 26, July 27, ASSETS 2003 2002 ------------- -------------- Current Assets: Cash & cash equivalents $37,551 $83,690 Marketable securities 113,897 159,049 Merchandise inventories 110,348 113,371 Prepaid expenses and other 9,112 3,593 ------------- -------------- Total Current Assets 270,908 359,703 Property and Equipment 135,904 93,426 Deferred Income Taxes 11,255 5,869 Other Assets 4,896 3,999 ------------- -------------- $422,963 $462,997 ============= ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities $163,049 $128,744 Long-Term Debt 33,021 --- Shareholders' Equity 226,893 334,253 ------------- -------------- $422,963 $462,997 ============= ==============