Specialty apparel retailer Dress Barn, Inc. (DBRN), Thursday reported a rise in profit for the first quarter of fiscal 2010, helped by higher dressbarn and maurices sales and gross margins. Following better than expected results, the company also raised its earnings guidance for the fiscal 2010.
The Suffern, New York-based company's net earnings for the first quarter rose to $21.67 million or $0.33 per share from $19.73 million or $0.30 per share in the previous year. Results for the quarter include non-cash imputed interest of $1.4 million, resulting in a decrease of $0.01 in earnings per share, merger related costs of $1.6 million and impairment charges of $2.0 million.
The results for the first quarter of 2009 have been recast to include imputed interest of $1.3 million, resulting in a decrease of $0.02 in earnings per share.
On a non-GAAP basis, net earnings increased 34% to $25.0 million or $0.38 per share from $18.7 million or $0.29 per share last year.
On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased 7% to $404.09 million from $376.40 million a year ago. Comparable store sales for the quarter increased 4%. Analysts estimated revenue of $389.80 million for the first quarter.
By segment, net sales for dressbarn stores increased 6% to $248.0 million from the first quarter of fiscal 2009, driven primarily by a comparable store sales increase of 5% for the quarter. Net sales for maurices stores increased 9% to $156.1 million from last year due to a comparable store sales increase of 4% and 13 new stores opened in the quarter.
Gross profit was $163.80 million or 40.5% of net sales, compared to $147.20 million or 39.1% of net sales in the earlier year.
SG&A expenses for the first quarter were $113.8 million, compared to $102.7 million in the prior-year first quarter.
Looking forward, the company increased its earnings guidance for the fiscal 2010 to a range of $1.20 to $1.30 per share based on the company's better than expected first quarter results. This guidance includes an impact of about $0.05 to earnings per share as a result of a 53rd week of operations in fiscal 2010. Previously, the company expected fiscal 2010 earnings in the range of $1.10 to $1.20 per share.
Analysts estimate earnings of $1.20 per share for the fiscal 2010.
DBRN closed Thursday's regular trading at $20.52, down 0.58 or 2.75%, on a volume of 1.24 million shares on the Nasdaq. In after hours, the stock gained 0.69 or 3.36%, trading at $21.21.
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