NEW YORK (
shares ticked lower in extended trading after the Suffern, N.Y.-based off-price women's apparel retailer came in shy of Wall Street's profit expectations for its fiscal fourth-quarter results.
After the closing bell, the company reported a non-GAAP profit of $37.9 million, or 47 cents a share, for the fourteen-week period ended July 31, on sales of $710.9 million. Although the top-line number was above the consensus $690 million view, the profit fell short of the 49 cents a share average estimate of analysts polled by
Dress Barn also gave an outlook for fiscal 2011 ending next July, saying it expects non-GAAP earnings of $2.05 to $2.15 a share. Wall Street's current estimate is for earnings of $2.09 a share for the year.
The stock fell 1.8% to $24 on volume of around 160,000 in late trades, according to
. In the regular session ahead of the company's report, the shares lost 1.3% on volume of 1.3 million. Based on their close at $24.44, the shares were up around 7.2% so far in 2010.
David Jaffe, the company's CEO, also spoke in a statement about how the company was faring during back-to-school season.
"Our performance for the early Fall period has been good overall and we continue to be focused on maintaining strong margins, creating operating leverage, and taking advantage of opportunities to further improve on our store productivity levels in each concept," Jaffe said. "We are pleased to see continuing momentum in our businesses, particularly with our maurices and Justice concepts during the key back-to-school retailing season."
Wall Street was bullish about the stock ahead of the report with six of the seven analysts covering the company at either buy (2) or strong buy (4). The median 12-month price target on the stock was $30, implying upside of around 20% from current levels.
Written by Michael Baron in New York.
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