Monday, speciality apparel retailer Dress Barn Inc. (DBRN) raised its earnings forecast by $0.05 for the fiscal year ending July 31, 2010, as a result of better than expected holiday sales.
Suffern, New York-based Dress Barn raised its full year earnings forecast to a range of $1.40 to $1.50 per share from the previous range of $1.35 to $1.45, due to better than expected holiday season sales and margin performance.
On an average, four analysts polled by Thomson Reuters currently expect the company to earn $1.43 per share for the full year. Analysts' estimates typically exclude one-time items.
The company noted that comparable store sales for the holiday season, from Black Friday to the Saturday after New Year's Day, was up 10% on a consolidated basis, with dressbarn reporting an increase of 3%, maurices up 3% and Justice showing an increase of 17% for the period.
Dress Barn also said that the exchange offer for the redemption of its $112.5 million convertible senior notes announced on December 23, 2009 will expire on January 22 and expects to settle it on January 27. The company indicated a full redemption would eliminate $112.5 million of debt and $9 million of annual interest expense, while still maintaining about $250 million of cash and investments.
DBRN is currently trading at $24.00,down $0.92 or 3.69% on a volume of 1.70 million shares on the Nasdaq.
For comments and feedback: editorial@rttnews.com