Net sales for the locally based apparel retailer reached $347.9 million for the quarter ended April 28, up 6% in comparison with the same quarter a year ago. At $23.1 million, net earnings registered a 15%-increase over the prior-year quarter. And comp-store sales were up 2% this third quarter, which came on top of a 7% comp-store increase in third quarter 2006.
The third quarter was followed by success in May. Jaffe said sales for the month are 14% above May 2006 sales. "We are particularly pleased with the strong sales momentum shown through May," he said, noting the rise is better than expected.
As of May 26, the company operated 823 dressbarn units in 46 states and 587 maurices stores in 42 states. A significant shift is underway at the maurices units. Plus-size women's apparel will be launched at those stores in June.
"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 under-performing men's business and introducing female plus sizes," Jaffe said. Calling the shift "a key brand-builder," he said it allows "maurices to focus on a similar and related group of customers."
Based on third-quarter performance and better-than-expected May sales, Dress Barn raised its earnings per share guidance for the full fiscal year, which ends July 28. The company now anticipates a range of between $1.38 and $1.40 a share, compared with its previous guidance of between $1.30 and $1.35 a share.
The May data came in a statement following the conference call. For fiscal May, comp-store sales rose 10%, compared with May 2006. The dressbarn units generated a 7%-rise in comps, and maurices' comps were up 18% in comparison with the same month a year ago.
Despite disclosing May's sales success, Jaffe said the company will stop reporting sales on a monthly basis. Beginning with the retailer's first fiscal quarter ending Oct. 27 this year, it will report consolidated sales and comp-store sales only on a quarterly basis, "consistent with practices at other retailers," management said.
DBRN common stock ended trading on May 30, the day of the conference call, at $22.99 a share, up nearly 5.9% for the day. The 52-week trading range on the Nasdaq spans a high of $26.84 a share and a low of $16.91 a share.
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