Earnings Preview: The Dress Barn, Inc. (DBRN)

The Dress Barn, Inc. (NASDAQ: DBRN) is currently lower on the session by 0.74%, trading at $24.56. The company is scheduled to report earnings today, after the closing bell.

• Estimates

The Street is looking for Q4 earnings per share of $0.49 on revenue of $679.23 million. These estimates have stayed the same over the past 90 days. The Whisper number for DBRN is $0.49.

• Guidance

The Street is looking for Q1 EPS of $0.59 on revenue of $696.05 million. The full year 2010 estimates are $1.83 per share on revenue of $2.34 billion; FY 2011 is at $2.14 per share on revenues of $2.74 billion.

• Technical Picture

DBRN has been consolidating lower for the past five months; this comes after an immense rally from late 2008, when the stock was trading at $6.50, to April of 2010, when DBRN hit $30.00. On a near-term basis the stock has popped above the 50-day moving average.

• Volatility

Both historical volatility and implied volatility have been down-trending over the past few months after a spike higher in mid-May. Currently HI is at 43% and IV is at 38%. The front month $24.00/25.00 strangle is trading at 73.77%; the October $24.00/25.00 strangle is trading at 39.70%

The Dress Barn, Inc. operates women's apparel specialty stores, principally under the names dressbarn, dressbarn woman and maurices. As of July 25, 2009, the company operated 1,559 stores in 48 states and the District of Columbia, including 684 dressbarn Combo stores, 721 maurices stores, 120 dressbarn stores and 34 dressbarn woman stores. Its dressbarn stores are typically operated as Combo stores, offering both dressbarn and larger-sized dressbarn woman merchandise.

The Dress Barn, Inc. also operates stand-alone dressbarn and dressbarn woman stores in certain markets. Its dressbarn brands cater to 35 to 55 year-old women, sizes 4 to 24.

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