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Earnings Calls: 
Dress Barn Earnings Call, Third Quarter 2008
Author: Maclintosh Kuhlengisa
123jump.com
Last Update: 4:51 PM EDT May 29 2008

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The specialty apparel retailer reported an earnings increase of 8% to $24.9 million or 39 cents a share, as total sales increased 1% to $352.6 million, versus $347.9 million last year, while comparable store sales decreased 3%. While the sales results reflect the continued slowdown in consumer spending, the firm controlled inventory and saw strong merchandise margins.


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Gary Giblen (Goldsmith & Harris): In your overlap competitors, do see specific things that lead you to believe that it is going to be extremely promotional?

David Jaffe: It is already happening. Whether it’s the mailers that we all get or the SSIs or we all shop our competition, and the tenure of the promotions and the depth, the breadth of them throughout the store just feels more intensive as we get further and further into the season than it did last year.

We just realize that to move goods in this market, you have got to make sure that everybody understands you are offering a great value, and so some of the things we talked about speak to that point specifically.

Gary Giblen (Goldsmith & Harris): And is the competitive intensity, has it leveled out or is it seeming to getting more intense?

David Jaffe: It seems like it is leveling off as we approach the end of the season, but you know, we are going to watch it. Just to go back to our May results, a month ago, we thought we had everything under control and then the bottom fell out a little bit, and we dropped from a trend of down five to down twelve.
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