EX-99 2 d0404release.txt EXHIBIT 99.1- PRESS RELEASE [GRAPHIC OMITTED][GRAPHIC OMITTED] www.dressbarn.com NEWS RELEASE CONTACT: ARMAND CORREIA SENIOR VICE PRESIDENT & CFO (845) 369-4600 FOR IMMEDIATE RELEASE MAY 19, 2004 THE DRESS BARN, INC. REPORTS FISCAL THIRD QUARTER EARNINGS RESULTS SUFFERN, NY - MAY 19, 2004 - 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 earnings and sales for the third quarter ended April 24, 2004. For the thirteen-week fiscal period ended April 24, 2004, net earnings increased 107% to $5.4 million, or $0.18 per diluted share, compared to $2.6 million, or $0.09 per diluted share for the same quarterly period in the prior year. As previously reported, net sales for this quarterly period increased 11% to $183.3 million, compared to $165.7 million last year. Same-store sales increased 7% for this quarterly period. For the nine-month fiscal period ended April 24, 2004, net earnings increased 4% to $16.7 million, or $0.56 per diluted share, compared to $16.0 million, or $0.49 per diluted share last year. Net sales for this nine-month period increased 5% to $546.9 million compared to $519.0 million during the prior year. Same-store sales increased 2% for this period. "We are pleased with our third quarter results and the increased earnings over last year", said Elliot S. Jaffe, Chairman of The Dress Barn, Inc. "Our results were driven by strong same-store sales and gross margin performance throughout the quarter. Our inventory levels are in line with our current sales trends, and expenses continue to be well controlled." As of April 24, 2004, the Company operated 793 stores (186 Dress Barn, 54 Dress Barn Woman and 553 Combination Stores) in 45 states. As previously announced, the Company will host a conference call this afternoon at 3:00 p.m. Eastern Time to review its third quarter 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) 786-2963, the passcode is 66263235. A replay of the call will be available until May 28, 2004 by dialing (617) 801-6888, the passscode is 51870276. 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 26, 2003 and Form 10-Q for the fiscal quarter ended January 24, 2004. 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 expressed 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 - Unaudited Dollars in thousands except per share amounts
Thirteen Weeks Ended Thirty-Nine Weeks Ended ---------------------------------------------------------------------------------------- April 24, April 26, April 24, April 26, 2004 2003 2004 2003 ------------- -------------- ------------- ------------- Net sales $183,331 100.0% $165,692 100.0% $546,928 100.0% $518,990 100.0% Cost of sales, including occupancy and buying costs 119,080 65.0% 110,354 66.6% 350,237 64.0% 337,325 65.0% ------------- -------------- ------------- ------------- Gross profit 64,251 35.0% 55,338 33.4% 196,691 36.0% 181,665 35.0% Selling, general and administrative expenses 50,388 27.5% 46,973 28.3% 152,102 27.8% 142,671 27.5% Depreciation expense 4,963 2.6% 5,193 3.2% 17,415 3.2% 17,225 3.3% ------------- -------------- ------------- ------------- Operating income 8,900 4.9% 3,172 1.9% 27,174 5.0% 21,769 4.2% Interest income 553 0.2% 507 0.4% 1,767 0.3% 2,891 0.5% Interest expense (1,347) (0.7)% - - (3,918) -0.7% - - Other income 381 0.2% 398 0.2% 1,144 0.2% 398 0.1% ------------- -------------- ------------- ------------- Earnings before income taxes 8,487 4.6% 4,077 2.5% 26,167 4.8% 25,058 4.8% Income taxes 3,098 1.7% 1,468 0.9% 9,498 1.8% 9,022 1.7% ------------- -------------- ------------- ------------- Net earnings $5,389 2.9% $2,609 1.6% $16,669 3.1% $16,036 3.1% ============= ============== ============= ============= Earnings per share: Basic: $0.18 $0.09 $0.57 $0.50 ============= ============== ============= ============= Diluted: $0.18 $0.09 $0.56 $0.49 ============= ============== ============= ============= Average shares outstanding Basic: 29,522 29,125 29,343 31,903 ------------- -------------- ------------- ------------- Diluted: 30,370 29,847 30,031 32,656 ------------- -------------- ------------- -------------
The Dress Barn, Inc. and Subsidiaries Condensed Consolidated Balance Sheets - Unaudited Dollars in thousands
April 24, April 26, ASSETS 2004 2003 ------------------- ------------------- Current Assets: Cash and cash equivalents $66,248 $44,720 Marketable securities and investments 127,103 52,404 Merchandise inventories 112,636 118,777 Prepaid expenses and other 6,586 3,233 ------------------- ------------------- Total Current Assets 312,573 219,134 ------------------- ------------------- Property and Equipment 136,557 136,549 Deferred Income Taxes 8,620 5,798 Other Assets 7,464 4,908 ------------------- ------------------- $465,214 $366,389 =================== =================== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable- trade $83,751 $64,853 Accrued salaries, wages and related expenses 20,422 18,869 Litigation accrual 35,911 3,686 Other accrued expenses 32,254 30,404 Customer credits 8,792 7,664 Income taxes payable 4,197 7,603 Current portion of long-term debt 1,019 - ------------------- ------------------- Total Current Liabilities 186,346 133,079 ------------------- ------------------- Long-Term Debt 32,252 - Shareholders' Equity 246,616 233,310 ------------------- ------------------- $465,214 $366,389 =================== ===================