Dress Barn, Inc. (NASDAQ – DBRN) today reported sales and earnings results for its fourth quarter and fiscal year ended July 25, 2009.

Fiscal Fourth Quarter Results

Net sales for the fiscal fourth quarter ended July 25, 2009 increased 4% to $398.9 million from $382.3 million for the fiscal fourth quarter ended July 26, 2008. Comparable store sales for the quarter increased 1%.

By division, net sales for dressbarn stores increased 6% to $253.7 million compared to $238.5 million for the fourth quarter of fiscal 2008, driven primarily by a comparable store sales increase of 4% for the quarter. Net sales for maurices stores increased 1% to $145.2 million compared to $143.8 million for the fourth quarter of fiscal 2008. The increase was driven by new stores offset by a comparable store sales decrease of 5% for the quarter.

Net earnings for the fiscal fourth quarter were $26.4 million, or $0.41 per diluted share. During the quarter the Company incurred certain unusual items that are not indicative of on-going operations. Accordingly, a GAAP to non-GAAP reconciliation of these items is provided later in this release for a more valid comparison to the prior year. Net earnings on this non-GAAP basis were $25.2 million, or $0.39 per diluted share. This compares to net earnings of $22.1 million, or $0.34 per diluted share for the fourth quarter of fiscal 2008.

2009 Fiscal Year Results

Net sales for the fiscal year ended July 25, 2009 increased 3% to $1.494 billion from $1.444 billion for the fiscal year ended July 26, 2008. Comparable store sales for the year were flat.

By division, net sales for dressbarn stores increased 2% to $906.2 million compared to $887.6 million for fiscal 2008; comparable store sales for the fiscal year were flat. Net sales for maurices increased 6% to $588.0 million, compared to $556.6 million for fiscal 2008; comparable store sales for the year decreased 1%.

Net earnings for fiscal 2009 were $69.7 million, or $1.11 per diluted share. Net earnings on the non-GAAP basis described later in this release were $68.5 million or $1.09 per diluted share. This compares to net earnings of $74.1 million, or $1.15 per diluted share for fiscal 2008.

Commentary

David R. Jaffe, President and Chief Executive Officer commented, “We are pleased with our performance in a challenging environment due largely to effective merchandising that has communicated an appealing combination of fashion and value to consumers. At the same time, we have continued to carefully control costs and inventory levels and remain focused on generating cash.”

Mr. Jaffe continued, “This year, we generated $115 million of free cash flow. Our long-held belief continues to be that a highly liquid balance sheet positions us well to continue to grow our business.

We are awaiting completion of our previously announced merger with Tween Brands, whose dominant position in the tween specialty retailing market can further extend our demographic reach and create significant value for our shareholders.”

Mr. Jaffe concluded, “As we move forward, we believe that there remains an excellent opportunity for our concepts to perform well and for our company to expand the scope of its business. We will continue to have significant untapped liquidity and look to maximize the performance of our operations in the year ahead. While we expect the consumer environment to remain challenging, we believe we are in the right position to make the most of the opportunities for growth.”

Reconciliation of GAAP to Non-GAAP Earnings and Diluted EPS

Net earnings and diluted earnings per share, excluding the impairment and merger related costs offset by the tax benefit of the prior year’s tax positions are shown below as non-GAAP measures. Because management believes these expenses and tax benefit may not be indicative of normal operating items, management believes these non-GAAP measures are useful to investors as an alternative for measuring the Company’s operating performance and comparing it against the prior year fiscal fourth quarter and fiscal year.

Fourth Quarter Fiscal 2009:
(in millions, except per share amounts)			Earnings before income taxes		Income taxes		Net earnings		Diluted earnings per share ..
Reported GAAP Basis			$ 35.0		$ 8.6		$ 26.4		$ 0.41
Adjustments to SG&A expenses:
Merger related costs			3.6		1.0		2.6		0.04
Impairment of trade name			2.0		0.8		1.2		0.02
Tax benefit of prior year’s tax positions			–		5.0		(5.0)		(0.08)
Non-GAAP basis			$ 40.6		$ 15.4		$ 25.2		$ 0.39
Fiscal Year 2009:
(in millions, except per share amounts)			Earnings before income taxes		Income taxes		Net earnings		Diluted earnings per share
Reported GAAP Basis			$ 106.6		$ 36.9		$ 69.7		$ 1.11
Adjustments to SG&A expenses:
Merger related costs			3.6		1.0		2.6		0.04
Impairment of trade name			2.0		0.8		1.2		0.02
Tax benefit of prior year’s tax positions			–		5.0		(5.0)		(0.08)
Non-GAAP basis			$ 112.2		$ 43.7		$ 68.5		$ 1.09

Merger Update

On June 24, 2009, the Company entered into a definitive agreement with Tween Brands, Inc. pursuant to which a subsidiary of the Company agreed to merge with Tween Brands, Inc. in a stock-for-stock transaction. The transaction continues to progress with anticipated completion in the fourth quarter of calendar 2009. On July 28, 2009, the Company and Tween Brands, Inc. submitted notification and report forms under the Hart Scott Rodino Act with the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice. The Hart Scott Rodino Act waiting period expired with no comment. In addition, on August 11, 2009, the Company filed a registration statement on Form S-4 with the Securities and Exchange Commission. The S-4 contains Tween Brands, Inc. proxy statement. Once the S-4 is declared effective, Tween Brands, Inc. is required to distribute a definitive proxy statement to its stockholders in connection with a meeting of Tween Brands stockholders to approve the merger agreement.

Fiscal July 2010 Guidance

The Company’s guidance for earnings per diluted share for fiscal July 2010 is in the range of $1.10 to $1.20. This guidance is based solely on dressbarn and maurices estimated results. We expect to update this guidance after the completion of the Tween Brands merger. This estimate is also based upon various assumptions for the year including a low single digit increase in comparable store sales. Fiscal 2010 is a 53-week year, with the fourth quarter including 14 weeks. The Company plans to open approximately 50 stores and close 25 stores, ending fiscal 2010 with approximately 1,585 dressbarn and maurices stores in operation.

Conference Call Information

The Company will conduct a conference call today, September 16, 2009 at 4:30 PM Eastern Time to review its fourth quarter and year-end financial results followed by a question and answer session. Parties interested in participating in this call should dial in at (617) 213-8836 prior to the start time, the passcode is 61075161. The call will also be simultaneously broadcast at www.dressbarn.com. A recording of the call will be available shortly after its conclusion and until October 16, 2009 by dialing (617) 801-6888, the passcode is 61288879.

ABOUT DRESS BARN, INC.

Dress Barn, Inc. (NASDAQ – DBRN), is a leading national specialty apparel retailer offering quality career and casual fashion apparel through its dressbarn and maurices brands. As of July 25, 2009, the Company operated 838 dressbarn stores in 47 states and 721 maurices stores in 44 states. For more information, please visit www.dressbarn.com and www.maurices.com.

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