Dress Barn lowers EPS outlook

SUFFERN, N.Y. Dress Barn today announced that due to a comparable-store sales decline in the low single digits for the first fiscal quarter ended Oct. 27, it now estimates that first quarter earnings per diluted share will be in the range of 30 cents to 32 cents, compared to 40 cents last year.

Dress Barn has revised its estimated fiscal 2008 diluted earnings per share to be in the range of $1.25 to $1.35. The company’s previously announced guidance for full-year earnings was $1.40 to $1.50 per diluted share. This revised earnings guidance is based upon various assumptions, including estimated comparable-store sales increases in the low single digits for the remainder of the year.

According to David Jaffe, president and ceo of Dress Barn, sales have been hurt by unseasonably warm weather during September and October.” 

Jaffe added, “Our focus remains on controlling costs and balancing our dressbarn stores’ inventory. The weaker than anticipated comparable store sales and our need to bring our dressbarn stores’ inventories into line are expected to negatively impact both our first and second quarters‘ earnings. We remain optimistic for an improved business performance during the second half of our fiscal year.”