EX-99.2 5 v077062_ex99-2.htm Unassociated Document
EXHIBIT 99.2
 
  
  

NEWS RELEASE

DRESS BARN, INC. REPORTS THIRD QUARTER RESULTS

-- 3Q ‘07 Comparable Sales Increase 2 Percent --
-- 3Q ‘07 Earnings Increase 15 Percent --
-- maurices Introducing Female Plus-Sizes --
-- Raises Earnings Guidance for Fiscal 2007 --
-- Changes Sales Reporting Schedule --

SUFFERN, NY - MAY 30, 2007 - Dress Barn, Inc. (NASDAQ - DBRN) today reported sales and earnings results for its fiscal third quarter ended April 28, 2007.

Fiscal Third Quarter Results

Net sales for the fiscal third quarter ended April 28, 2007 increased 6% to $347.9 million compared to $327.2 million for the fiscal third quarter ended April 29, 2006. Comparable store sales increased 2% compared to a 7% increase for the same fiscal quarter last year.

Net earnings for the fiscal third quarter ended April 28, 2007 increased 15% to $23.1 million, or $0.33 per diluted share. This compares to net earnings of $20.0 million, or $0.29 per diluted share for the comparable fiscal quarter last year.

Fiscal Nine-Month Results

Net sales for the fiscal nine months ended April 28, 2007 increased 9% to $1.05 billion compared to $957.0 million reported for the comparable fiscal nine-month period ended April 29, 2006. Comparable store sales increased 5% compared to a 9% increase for the same fiscal nine-month period last year.

Net earnings for the fiscal nine months ended April 28, 2007 increased 24% to $67.6 million, or $0.97 per diluted share. This compares to net earnings of $54.5 million, or $0.81 per diluted share for the comparable period last year.

Quarterly Commentary

David R. Jaffe, President and Chief Executive Officer of Dress Barn, Inc. commented, “We were pleased with our overall third quarter results. In general, the business is strong, reinforcing our belief that our spring/summer offerings are fashion-right. dressbarn and maurices showed sales strength across a variety of merchandise categories during the period, with dress selling particularly strong and enjoying one of the most successful seasons to date. Our merchandising teams have done a tremendous job, and we are particularly pleased with the strong sales momentum shown through May.”


“As a strategic initiative to improve our performance even further, maurices is in the process of re-merchandising a portion of the store footprint by exiting the underperforming men’s business and introducing female plus-sizes. This is a key brand builder allowing maurices to focus on a similar and related group of customers. We expect to launch plus-sizes at maurices by mid-June and are excited about the potential of the line, which, we believe, will enhance sales productivity.”

“Our solid balance sheet continues to strengthen and our operations are generating strong cash flows. Overall, given the recent increased sales trends, we are comfortable with our inventory levels going forward, and we remain optimistic that the improved sales trends will continue through the remainder of our fiscal fourth quarter.”

Raises Fiscal July, 2007 Earnings Guidance

As a result of third quarter results, and the better-than-expected May sales performance announced this morning, the Company is raising its earnings per share guidance for the full fiscal year ending July 28, 2007 to the range of $1.38 to $1.40 from its previous earnings per share guidance of $1.30 to $1.35.

Change In Sales Reporting Schedule Effective Fiscal Year 2008

As previously announced, beginning with the first fiscal quarter ending October 27, 2007, and consistent with practices at other retailers, the Company will begin reporting consolidated sales and comparable store sales on a quarterly basis, and will discontinue reporting sales results on a monthly basis.

Conference Call Information

The Company will host a conference call today, May 30, 2007 at 8:30 AM Eastern Time to review its fiscal third quarter financial results followed by a question and answer session. Parties interested in participating in the conference call should dial-in five minutes prior to the conference call at (617) 786-2964; the passcode is 37652413. The conference call will also be simultaneously broadcast at www.dressbarn.com. A recording of the conference call will be available shortly after its conclusion and until June 2, 2007 by dialing (617) 801-6888; the passcode is 80967082.

About Dress Barn, Inc.

Dress Barn, Inc. (NASDAQ - DBRN), is a leading national specialty apparel retailer offering quality career and casual fashion apparel through its dressbarn and maurices brands. As of May 26, 2007, the Company operated 823 dressbarn stores in 46 states and 587 maurices stores in 42 states. For more information, please visit www.dressbarn.com and www.maurices.com.

Forward-Looking Statements

Certain statements made within this press release may constitute “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. The Company does not undertake to publicly update or review its forward-looking statements even if experience or future changes make it clear that our projected results expressed or implied will not be achieved. Detailed information concerning a number of factors that could cause actual results to differ materially from the information contained herein is readily available on our most recent report on Form 10-K for the year ended July 29, 2006 and Form 10-Q for the quarter ended January 27, 2007.


The conference call will be recorded on behalf of 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.

CONTACT:
Dress Barn, Inc.
 
Investor Relations
 
(845) 369-4600
 

Dress Barn, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings- Unaudited
Amounts in thousands, except per share amounts
 
   
Thirteen Weeks Ended
  
Thirty-Nine Weeks Ended
  
   
April 28,
  
 
  
April 29,
  
 
  
April 28,
  
 
  
April 29,
  
 
  
   
2007
      
2006
      
2007
      
2006
      
   
 
      
 
      
 
      
 
      
Net sales
  
$
347,923
    
100.0%
 
$
327,176
    
100.0%
 
$
1,046,705
    
100.0%
 
$
956,972
    
100.0%
 
Cost of sales, including
                                             
occupancy and buying costs
    
205,378
   
59.0%
 
  
193,764
   
59.2%
 
  
626,182
   
59.8%
 
  
573,720
   
60.0%
 
Gross profit
    
142,545
   
41.0%
 
  
133,412
   
40.8%
 
  
420,523
   
40.2%
 
  
383,252
   
40.0%
 
Selling, general and
         
 
                            
 
administrative expenses
    
95,797
   
27.5%
 
  
89,076
   
27.2%
 
  
283,522
   
27.1%
 
  
258,614
   
27.0%
 
Depreciation and amortization
    
11,009
   
3.2%
 
  
10,279
   
3.1%
 
  
33,856
   
3.2%
 
  
30,852
   
3.2%
 
Operating income
    
35,739
   
10.3%
 
  
34,057
   
10.4%
 
  
103,145
   
9.9%
 
  
93,786
   
9.8%
 
Interest income
    
1,482
   
0.4%
 
  
804
   
0.2%
 
  
4,414
   
0.4%
 
  
1,428
   
0.1%
 
Interest expense
    
(1,282
)
  
-0.4%
 
  
(1,243
)
  
-0.4%
 
  
(3,731
)
  
-0.4%
 
  
(4,158
)
  
-0.4%
 
Other income
    
388
   
0.1%
 
  
381
   
0.1%
 
  
1,011
   
0.1%
 
  
1,144
   
0.1%
 
Earnings before income taxes
    
36,327
   
10.4%
 
  
33,999
   
10.4%
 
  
104,839
   
10.0%
 
  
92,200
   
9.6%
 
Income taxes
    
13,216
   
3.8%
 
  
13,968
   
4.3%
 
  
37,286
   
3.6%
 
  
37,689
   
3.9%
 
Net earnings
  
$
23,111
    
6.6%
 
$
20,031
    
6.1%
 
$
67,553
    
6.5%
 
$
54,511
    
5.7%
 
                                               
Earnings per share:
                                                  
Basic
  
$
0.37
        
$
0.33
        
$
1.09
        
$
0.89
        
Diluted
  
$
0.33
        
$
0.29
        
$
0.97
        
$
0.81
        
                                               
Weighted average shares outstanding:
                                    
Basic
    
62,188
         
61,569
          
61,906
         
61,071
        
Diluted
    
69,574
         
70,229
          
69,852
         
67,640
        


Dress Barn, Inc. and Subsidiaries
        
Condensed Consolidated Balance Sheets- Unaudited
        
Amounts in thousands
  
 
    
 
   
April 28,
  
April 29,
  
ASSETS
  
2007
  
2006
  
Current Assets:
          
Cash and cash equivalents
  
$
63,603
  
$
30,888
  
Restricted cash
   
-
   
100
  
Marketable securities and investments
   
152,813
   
104,287
  
Merchandise inventories
    
168,819
   
150,402
  
Deferred tax asset
    
8,755
   
-
 
Prepaid expenses and other
    
15,508
   
13,575
  
Total Current Assets
    
409,498
    
299,252
  
               
Property and Equipment
    
492,807
    
448,596
  
Less accumulated depreciation and amortization
    
238,455
   
213,662
 
Property and equipment, net
    
254,352
    
234,934
  
             
Intangible Assets, net
    
109,399
   
110,460
  
Goodwill
    
130,656
   
132,566
  
Other Assets
    
21,072
   
18,350
  
TOTAL ASSETS
  
$
924,977
  
$
795,562
  
 
              
               
LIABILITIES AND SHAREHOLDERS' EQUITY
              
Current Liabilities:
              
Accounts payable - trade
  
$
108,233
  
$
102,055
  
Accrued salaries, wages and related expenses
    
42,618
   
41,638
  
Other accrued expenses
    
47,239
   
42,592
  
Customer credits
    
20,070
   
17,218
  
Income taxes payable
    
-
   
8,031
 
Deferred tax liability
    
-
   
365
  
Current portion of long-term debt
    
1,195
   
1,133
  
Total Current Liabilities
    
219,355
    
213,032
  
           
Long-Term Debt
   
143,849
   
145,044
  
Deferred Rent and Other
    
62,158
   
46,650
  
Deferred Tax Liability
    
9,166
   
7,236
  
Total Liabilities
    
434,528
    
411,962
  
Shareholders' Equity
    
490,449
   
383,600
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  
$
924,977
  
$
795,562