Dress Barn, Inc. (DBRN) just hit a new 52-week high on better than expected Q2 results from early March that included an awesome 48% earnings surprise.
Second-Quarter Results
Sales for the period were up 73% from last year to $594 million. The gain was driven by the company’s November merger with Justice, but when breaking out each segment on an individual basis, the numbers still look solid.
Segment Results
Dress Barn sales were up 7% from last year to $209 million, with comparative store sales up 6%. Maurices saw sales increase 12% to $164 million, with same-store sales up 5%. And finally, same-store sales at Justice were up 19% from last year to $221 million.
Dress Barn also saw its operating income spike, coming in at $43 million, or 7.3% of sales, compared to a $2.4 million last year. The gains were driven by gross margin expansion and strong same-store sales results.
Balance Sheet
Dress Barn’s balance sheet improved from last year too, with cash and equivalents up $82 million to $253 million while long-term debt dropped almost $100 million to $25 million.
Estimates
Estimates advanced on the good quarter, with the current year adding 11 cents in the last month to $1.58 and the next year adding 4 cents to $1.97, a bullish 24% growth projection.
DBRN still looks reasonably priced, trading with a forward P/E multiple of 17X, in line with the overall market.
The Chart
DBRN hit a new 52-week high on the good quarter. If shares do pull back, look for support at this breakout area. Take a look below.
Last Week’s Momentum Zacks Rank Buy Stocks
Treehouse Foods Inc. (THS) recently hit a new 52-week high on better than expected Q4 results from February 11 that included an 18% earnings surprise. Read Full Article.
Cinemark Holdings Inc. (CNK) recently hit a new 52-week high just above $17 on strong Q4 results from late February that pushed estimates higher. Read Full Article.
Ameriprise Financial, Inc. (AMP) recently rebounded from a key trend line to jump back within striking distance of the 52-week high at $42.98. Shares of AMP have been trending higher for most of the last month on the heels of the company’s better than expected Q4 results from early February. Read Full Article.
Starbucks Corp. (SBUX) recently rebounded from a key trend line to move back within striking range of the 52-week high at $24.45. The move higher comes on the heels of the company’s better than expected Q1 results from late January. Read Full Article.
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. Zacks Investment Research
