The Dress Barn (DBRN) is expected to report Q1 earnings after market close Wednesday, November 19, with a conference call scheduled for 4:30 pm ET.
Analysts are looking for a profit of 27c on revenue of $370.4M. The consensus range is 27c to 28c for EPS, according to First Call, and revenue of 368.9M to $371.9M, according to First Call. In September, the company forecast FY09 EPS $1.23 to $1.28 vs. First Call consensus of $1.15.
U.S. consumers have stayed away from department stores for months as rising food and fuel prices put pressure on budgets hurt by job losses, the credit crunch and the turmoil in the housing market. In particular, women's apparel retailers have been among the hardest hit in the retail sector. Instead of spending at department stores, consumers are flocking to wholesale clubs and discount apparel chains.
While Dress Barn is likely to miss its outlook for the full year, C.L. King analyst Mark Montagna believes the retailer will likely fare better than its peers. He believes guidance will be reduced because the company had likely not factored in "brutal economic headlines and realities" over the past few weeks when it gave guidance. Dress Barn shares have fallen approximately 30% since the beginning of the year.