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Dress Barn increases full year earnings guidance
03 Mar '10
6 min read
By division, net sales for dressbarn increased 6% to $457.3 million compared to $429.4 million for the first six months of fiscal 2009, driven primarily by a comparable store sales increase of 5% for the fiscal six months. Net sales for maurices increased 10% to $319.8 million compared to $290.2 million for the first six months of fiscal 2009. The increase was driven by a comparable store sales increase of 4% and a 7% increase in average square footage. Net sales for Justice were $221.1 million since the merger on November 25, 2009. During this period, comparable store sales increased 19%.
Net earnings for the fiscal six months increased to $43.4 million, or $0.61 per diluted share compared to recast GAAP net earnings of $17.9 million, or $0.29 per diluted share for the first six months of fiscal 2009. Interest expense in both periods includes non-cash, imputed interest recorded in accordance with our adoption of Accounting Standards Codification (ASC) 470-20.
Net earnings on a non-GAAP basis increased to $53.1 million, or $0.74 per diluted share compared to net earnings for the first six months of 2009 of $16.9 million, or $0.27 per diluted share. During this six month period, the Company incurred items that management believes are not indicative of ongoing operations in the amount of $15.0 million of pretax charges versus a pretax benefit of $1.6 million last year. A GAAP to non-GAAP reconciliation of these items is provided later in this release.
SG&A expenses for the fiscal six months were $285.5 million, or 28.6% of sales compared to $205.7 million, or 28.6% of sales in the prior year six month period. SG&A expenses on a non-GAAP basis were $276.2 million, or 27.7% of sales compared to $207.3 million, or 28.8% of sales in the prior year six month period. The decrease of 110 basis points as a percent of sales was primarily due to leverage from the increased comparable store sales.
Operating income for the fiscal six months was $80.9 million, or 8.1% of sales compared to $29.9 million, or 4.2% of sales in the prior year fiscal six month period. On a non-GAAP basis operating income increased to $90.1 million, or 9.0% of sales compared to $28.2 million, or 3.9% of sales in the prior year six month period. This increase is primarily due to improved gross profit and leverage from increased comparable store sales.
David R. Jaffe, President and Chief Executive Officer commented, "Our combination of fashion, attractive pricing, and strong customer service is a winning formula that is providing great value to our customers. We are very pleased with the performance of each of our three concepts. Our sales trends are strong, our inventory and margins are at good levels, and we are seeing improving unit-level productivity."
Mr. Jaffe continued, "We are very pleased to have maintained a very strong balance sheet after our recent merger with Justice. We believe that, over time, the adoption of best-practices across our organization will yield material benefits for each concept we operate. Our strong cash position, low debt levels, and excellent cash generation ability position us well to drive value to shareholders through a range of potential methods and strategies. We are very excited to be emerging from the difficult market of the past few years as one of the industry's largest and most diversified specialty retailers with powerful opportunities for continued growth."
Net earnings for the fiscal six months increased to $43.4 million, or $0.61 per diluted share compared to recast GAAP net earnings of $17.9 million, or $0.29 per diluted share for the first six months of fiscal 2009. Interest expense in both periods includes non-cash, imputed interest recorded in accordance with our adoption of Accounting Standards Codification (ASC) 470-20.
Net earnings on a non-GAAP basis increased to $53.1 million, or $0.74 per diluted share compared to net earnings for the first six months of 2009 of $16.9 million, or $0.27 per diluted share. During this six month period, the Company incurred items that management believes are not indicative of ongoing operations in the amount of $15.0 million of pretax charges versus a pretax benefit of $1.6 million last year. A GAAP to non-GAAP reconciliation of these items is provided later in this release.
SG&A expenses for the fiscal six months were $285.5 million, or 28.6% of sales compared to $205.7 million, or 28.6% of sales in the prior year six month period. SG&A expenses on a non-GAAP basis were $276.2 million, or 27.7% of sales compared to $207.3 million, or 28.8% of sales in the prior year six month period. The decrease of 110 basis points as a percent of sales was primarily due to leverage from the increased comparable store sales.
Operating income for the fiscal six months was $80.9 million, or 8.1% of sales compared to $29.9 million, or 4.2% of sales in the prior year fiscal six month period. On a non-GAAP basis operating income increased to $90.1 million, or 9.0% of sales compared to $28.2 million, or 3.9% of sales in the prior year six month period. This increase is primarily due to improved gross profit and leverage from increased comparable store sales.
David R. Jaffe, President and Chief Executive Officer commented, "Our combination of fashion, attractive pricing, and strong customer service is a winning formula that is providing great value to our customers. We are very pleased with the performance of each of our three concepts. Our sales trends are strong, our inventory and margins are at good levels, and we are seeing improving unit-level productivity."
Mr. Jaffe continued, "We are very pleased to have maintained a very strong balance sheet after our recent merger with Justice. We believe that, over time, the adoption of best-practices across our organization will yield material benefits for each concept we operate. Our strong cash position, low debt levels, and excellent cash generation ability position us well to drive value to shareholders through a range of potential methods and strategies. We are very excited to be emerging from the difficult market of the past few years as one of the industry's largest and most diversified specialty retailers with powerful opportunities for continued growth."
Dress Barn Inc
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