Earnings Beat Lifts Dress Barn

Shares of Dress Barn(DBRN Quote) climbed Wednesday after the women's apparel retailer posted a 15% rise in third-quarter earnings and boosted its full-year forecast.

Shares were up $1.11, or 5.1%, to $22.83 in recent trading.

The Suffern, N.Y.-based company earned $23.1 million, or 33 cents a share, in the first quarter, up from $20 million, or 29 cents a share, a year ago. Sales increased 6% to $347.9 million.

Analysts polled by Thomson Financial projected earnings of 31 cents a share on $350 million in revenue.

Dress Barn's same-store sales, or sales at stores open at least a year, rose 2%.

"In general, the business is strong, reinforcing our belief that our spring/summer offerings are fashion-right," David Jaffe, president and CEO, said in a news release. "Dressbarn and Maurices showed sales strength across a variety of merchandise categories during the period, with dress selling particularly strong and enjoying one of the most successful seasons to date."

Jaffe also said the company's Maurices chain will exit the men's business and introduce female plus-sizes by mid-June.

"This is a key brand builder allowing Maurices to focus on a similar and related group of customers," he said.

The company raised its full-year guidance to a range of $1.38 to $1.40 a share, up from its previous forecast of $1.30 to $1.35 a share. Wall Street is expecting earnings of $1.33 a share.

Separately, Dress Barn reported a 10% jump in May same-store sales, with the Dressbarn chain recording a 7% increase in comps and Maurices posting an 18% rise. Total sales for May increased 14% to $134.9 million.

Dress Barn's report came a day after fellow women's apparel retailer Coldwater Creek(CWTR Quote) also reported stronger-than-expected first-quarter earnings, with a 31% jump in sales. Shares of Coldwater were surging $3.18, or 15%, to $24.08.