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Consumer environment to remain challenging, Dress Barn
17 Sep '09
5 min read
Mr. Jaffe concluded, “As we move forward, we believe that there remains an excellent opportunity for our concepts to perform well and for our company to expand the scope of its business. We will continue to have significant untapped liquidity and look to maximize the performance of our operations in the year ahead. While we expect the consumer environment to remain challenging, we believe we are in the right position to make the most of the opportunities for growth.”
Reconciliation of GAAP to Non-GAAP Earnings and Diluted EPS
Net earnings and diluted earnings per share, excluding the impairment and merger related costs offset by the tax benefit of the prior year's tax positions are shown below as non-GAAP measures. Because management believes these expenses and tax benefit may not be indicative of normal operating items, management believes these non-GAAP measures are useful to investors as an alternative for measuring the Company's operating performance and comparing it against the prior year fiscal fourth quarter and fiscal year.
Merger Update
On June 24, 2009, the Company entered into a definitive agreement with Tween Brands, Inc. pursuant to which a subsidiary of the Company agreed to merge with Tween Brands, Inc. in a stock-for-stock transaction. The transaction continues to progress with anticipated completion in the fourth quarter of calendar 2009. On July 28, 2009, the Company and Tween Brands, Inc. submitted notification and report forms under the Hart Scott Rodino Act with the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice. The Hart Scott Rodino Act waiting period expired with no comment. In addition, on August 11, 2009, the Company filed a registration statement on Form S-4 with the Securities and Exchange Commission. The S-4 contains Tween Brands, Inc. proxy statement. Once the S-4 is declared effective, Tween Brands, Inc. is required to distribute a definitive proxy statement to its stockholders in connection with a meeting of Tween Brands stockholders to approve the merger agreement.
Fiscal July 2010 Guidance
The Company's guidance for earnings per diluted share for fiscal July 2010 is in the range of $1.10 to $1.20. This guidance is based solely on dressbarn and maurices estimated results. We expect to update this guidance after the completion of the Tween Brands merger. This estimate is also based upon various assumptions for the year including a low single digit increase in comparable store sales. Fiscal 2010 is a 53-week year, with the fourth quarter including 14 weeks. The Company plans to open approximately 50 stores and close 25 stores, ending fiscal 2010 with approximately 1,585 dressbarn and maurices stores in operation.
Reconciliation of GAAP to Non-GAAP Earnings and Diluted EPS
Net earnings and diluted earnings per share, excluding the impairment and merger related costs offset by the tax benefit of the prior year's tax positions are shown below as non-GAAP measures. Because management believes these expenses and tax benefit may not be indicative of normal operating items, management believes these non-GAAP measures are useful to investors as an alternative for measuring the Company's operating performance and comparing it against the prior year fiscal fourth quarter and fiscal year.
Merger Update
On June 24, 2009, the Company entered into a definitive agreement with Tween Brands, Inc. pursuant to which a subsidiary of the Company agreed to merge with Tween Brands, Inc. in a stock-for-stock transaction. The transaction continues to progress with anticipated completion in the fourth quarter of calendar 2009. On July 28, 2009, the Company and Tween Brands, Inc. submitted notification and report forms under the Hart Scott Rodino Act with the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice. The Hart Scott Rodino Act waiting period expired with no comment. In addition, on August 11, 2009, the Company filed a registration statement on Form S-4 with the Securities and Exchange Commission. The S-4 contains Tween Brands, Inc. proxy statement. Once the S-4 is declared effective, Tween Brands, Inc. is required to distribute a definitive proxy statement to its stockholders in connection with a meeting of Tween Brands stockholders to approve the merger agreement.
Fiscal July 2010 Guidance
The Company's guidance for earnings per diluted share for fiscal July 2010 is in the range of $1.10 to $1.20. This guidance is based solely on dressbarn and maurices estimated results. We expect to update this guidance after the completion of the Tween Brands merger. This estimate is also based upon various assumptions for the year including a low single digit increase in comparable store sales. Fiscal 2010 is a 53-week year, with the fourth quarter including 14 weeks. The Company plans to open approximately 50 stores and close 25 stores, ending fiscal 2010 with approximately 1,585 dressbarn and maurices stores in operation.
Dress Barn Inc
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