EX-99.1 2 v132995_ex99-1.htm

Exhibit 99.1

 
NEWS RELEASE
DRESS BARN, INC. REPORTS FISCAL FIRST QUARTER SALES AND EARNINGS

SUFFERN, NY - NOVEMBER 19, 2008 - Dress Barn, Inc. (NASDAQ - DBRN) today reported sales and earnings results for its fiscal first quarter ended October 25, 2008.

Net sales for the fiscal first quarter ended October 25, 2008 increased 3% to $376.4 million, compared to net sales of $363.7 million for the fiscal first quarter ended October 27, 2007. Comparable store sales for the quarter decreased 1%.

By division, net sales at dressbarn stores increased 2% to $232.8 million compared to net sales of $228.2 million in the first quarter of fiscal 2008. Comparable store sales for the quarter were flat to last year. Net sales at maurices stores increased 6% to $143.6 million compared to net sales of $135.5 million in the first quarter of fiscal 2008. Comparable store sales for the quarter decreased 3%.

Net earnings for the fiscal first quarter increased 4% to $20.5 million, or $0.32 per diluted share. This compares to net earnings of $19.6 million, or $0.30 per diluted share, for the comparable period of fiscal 2008.

Commentary

David R. Jaffe, President and Chief Executive Officer stated, “We are pleased to have generated solid first quarter results that exceeded our expectations. In view of the current condition of the consumer market, we have carefully adjusted our inventory levels and promotional strategy. We have also moderated our outlook for the remainder of our fiscal year given the difficult and highly promotional retail environment.”

Mr. Jaffe continued, “We believe our brands have a significant advantage in this retail climate as both benefit from a strong value message.”

Mr. Jaffe concluded, “We will maintain our focus on preserving our strong and liquid balance sheet, which ended the quarter with approximately $300 million in cash and marketable securities, while continuing to tightly control our inventories and costs.”
 
 
 
 

Exhibit 99.1
 
Revised Fiscal July 2009 Guidance
Given the current weakness in consumer spending that may well persist for the remainder of our fiscal year ending July 25, 2009, the Company revised its guidance for earnings per diluted share to the range of $0.90 to $1.00 from its previous guidance of $1.23 to $1.28. This revised earnings per share estimate is based upon various assumptions, including approximately 64.5 million fully diluted shares outstanding and a comparable store sales decrease in the mid-single digit range for the remainder of the fiscal year.

Conference Call Information

The Company will conduct a conference call today, November 19, 2008 at 4:30 PM Eastern Time to review its fiscal first quarter financial results followed by a question and answer session. Parties interested in participating in this call should dial in at (617) 597-5346 five minutes prior to the start time, the passcode is 91244776. The call will also be simultaneously broadcast at www.dressbarn.com. A recording of the call will be available shortly after its conclusion and until December 19, 2008 by dialing (617) 801-6888 with the passcode of 87956205.

ABOUT DRESS BARN, INC.
Dress Barn, Inc. (NASDAQ - DBRN), is a leading national specialty apparel retailer offering quality casual and career fashion apparel through its dressbarn and maurices brands. As of October 25, 2008, the Company operated 841 dressbarn stores in 46 states and 692 maurices stores in 44 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 26, 2008.

CONTACT:
Dress Barn, Inc.
Investor Relations
(845) 369-4600
 
 
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Exhibit 99.1
 
Dress Barn, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings- Unaudited
Amounts in thousands, except per share amounts
 
   
Thirteen Weeks Ended
  
   
October 25,
  
 
  
October 27,
  
 
  
   
2008
      
2007
      
   
 
      
 
      
Net sales
  
$
376,398
    
100.0
%
$
363,724
    
100.0
%
Cost of sales, including
                         
occupancy and buying costs
    
229,198
    
60.9
%
  
224,215
   
61.6
%
Gross profit
    
147,200
    
39.1
%
  
139,509
   
38.4
%
Selling, general and
                         
administrative expenses
    
102,688
    
27.3
%
  
96,735
   
26.6
%
Depreciation and amortization
    
12,204
    
3.2
%
  
11,581
   
3.2
%
Operating income
    
32,308
    
8.6
%
  
31,193
   
8.6
%
                           
Interest income
    
2,002
    
0.5
%
  
1,541
   
0.4
%
Interest expense
    
(1,226
)
  
-0.3
%
  
(1,215
)
  
-0.3
%
Other (expense) income
    
453
    
0.1
%
  
378
    
0.1
%
Earnings before income taxes
    
33,537
    
8.9
%
  
31,897
   
8.8
%
Income taxes
    
13,053
    
3.5
%
  
12,274
   
3.4
%
Net earnings
  
$
20,484
    
5.4
%
$
19,623
    
5.4
%
                           
Earnings per share:
                          
Basic
  
$
0.34
        
$
0.33
        
Diluted
  
$
0.32
        
$
0.30
        
                           
Weighted average shares outstanding:
                          
Basic
    
60,337
          
60,107
       
Diluted
    
64,901
          
65,891
       

 
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Exhibit 99.1
 
Dress Barn, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets- Unaudited
Amounts in thousands
 
   
October 25,
  
October 27,
  
ASSETS
    
2008
    
2007
  
Current Assets:
          
Cash and cash equivalents
  
$
144,275
  
$
46,999
  
Marketable security investments
   
102,121
    
150,592
  
Merchandise inventories
    
187,104
    
193,500
  
Deferred income tax asset
    
9,678
   
3,395
 
Prepaid expenses and other
    
20,212
    
18,874
  
Total Current Assets
    
463,390
    
413,360
  
               
Property, Plant and Equipment
    
538,475
    
496,116
  
Less accumulated depreciation and amortization
    
261,572
    
234,414
  
Property, Plant and Equipment, net
    
276,903
    
261,702
  
               
Deferred Income Taxes
    
-
   
9,089
  
Intangible Assets, net
    
107,549
    
108,626
  
Goodwill
    
131,318
    
130,656
  
Marketable Security Investments
    
51,954
    
-
  
Other Assets
    
17,800
    
21,590
  
TOTAL ASSETS
  
$
1,048,914
  
$
945,023
  
 
              
LIABILITIES AND SHAREHOLDERS' EQUITY
              
Current Liabilities:
              
Accounts payable - trade
  
$
111,327
  
$
95,395
  
Accrued salaries, wages and related expenses
    
28,743
    
25,228
  
Other accrued expenses
    
54,280
    
48,451
  
Customer credits
    
14,237
    
14,980
  
Income taxes payable
    
3,664
   
9,269
 
Current portion of long-term debt
    
1,294
    
116,227
  
Total Current Liabilities
    
213,545
    
309,550
  
             
Long-Term Debt
   
142,097
    
28,227
  
Deferred Rent and Lease Incentives
    
64,284
    
55,363
  
Deferred Compensation and Other Long Term Liabilities
    
42,204
    
53,473
  
Deferred Income Tax Liability
    
14,746
    
-
 
Total Liabilities
    
476,876
    
446,613
  
Shareholders' Equity
    
572,038
    
498,410
  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  
$
1,048,914
  
$
945,023
  
 
 
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