The Dress Barn, Inc.
The Dress Barn, Inc. (DBRN) recently surged higher on strong Q3 results from November and optimistic earnings guidance.
Company Description
Dress Barn, Inc. operates a chain of woman’s apparel specialty stores in the United States. The company was founded in 1962, owns more than 1,500 stores in 48 states and has a market cap of $1.39 billion.
Shares of DBRN have been on a bit of a roll lately, recently hitting a new 52-week high on strong Q3 results and bullish 2010 earnings guidance.
The company’s Nov 19 Q3 results included 7% sales growth from last year to $404 million. Earnings came in at 37 cents, 4 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last 3 quarters by an average of 15%.
Sales at Dress Barn’s Maurices led the way, up 9% to $156 million, with sales at actual Dress Barn stores was up 6% to $248 million. The company also strengthened its balance sheet, building its cash and equivalents by $140 million to $284 million.
Estimates and Guidance
On Dec 16 Dress Barn raised its 2010 guidance to $1.35-$1.45 per share, up from the previous range between $1.20 and $1.35. Analysts are bullish on the DBRN’s long-term prospects as well, with the current-year estimate pegged at $1.76, a 23% growth projection.
Valuation
Based on the current-year estimate of $1.43, DBRN is trading with a forward P/E of 16X, in line with the overall market.
The Chart
Shares of DBRN recently jumped higher on news of the strong Q3 results and the higher 2010 earnings guidance. Take a look at the chart below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service.
