Dress Barn fiscal 3Q earnings top analyst outlook

Earnings for the quarter ended April 26 rose to $24.9 million, or 39 cents per share, from $23.1 million, or 33 cents per share, in the same quarter a year ago.

Analysts surveyed by Thomson Financial forecast third-quarter earnings of 26 cents per share.

Dress Barn noted that per-share earnings were boosted by about 5 cents due to a decrease in the number of diluted shares outstanding. The company said earnings were also improved by a lower effective tax rate for certain one-time items.

Quarterly sales rose 1 percent to $352.6 million, from $347.9 million in the prior year.

Same-store sales, however, fell 3 percent during the period. Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

Same-store sales for Dressbarn stores dropped 6 percent, while comparable-store sales at the company's Maurices stores gained 5 percent.

President and Chief Executive David R. Jaffe said the company focused on managing its inventory and reducing expenses to contend with the slowdown in consumer spending that hurt Dressbarn sales. He noted the company's Maurices stores outperformed expectations.

"While the quarter exceeded our earnings expectations, we remain concerned about a potential further deterioration of the tough retail environment and currently expect an increase in the promotional competitive landscape," Jaffe said.

Dress Barn shares jumped 40 cents, or 2.9 percent, to $14.41 in after-hours trading. Earlier, the stock added 6 cents to close at $14.01.