Dress Barn, Inc.

Dress Barn, Inc. (DBRN), the specialty clothing retailer, recently surprised on the Zacks Consensus Estimate for the second consecutive quarter as sales jumped 4% in the fiscal-fourth quarter.

On Sep 16, the company reported earnings per share of 39 cents, or 3 cents higher, than the Zacks Consensus Estimate. This was a 5 cent improvement over the fourth quarter of the prior year.

Out of the company's two divisions, dressbarn and maurice stores, it was dressbarn that saw the better performance. Sales rose 6% to $253.7 million from $238.5 million in the fourth quarter of 2008. Same store sales jumped 4%.

Maurice stores grew sales by 1% to $145.2 million from $143.8 million a year ago. Same store sales fell 5% but new stores offset the decrease.

For the full fiscal year, comparable store sales were flat while net sales rose 3%.

The company is in the key value pricing end of the retail market. It is counting on the consumer's quest for value to continue to generate increased sales in fiscal 2010.

It also expects to complete the merger with Tween Brands which will give the company an entryway into the tween specialty retail market and expand its demographic reach.

Company Guided Under Analysts' View on 2010

Dress Barn provided its first look at fiscal 2010, forecasting earnings per share in the range of $1.10 to $1.20. This range does not include the Tween merger. The guidance will be updated after that transaction is completed.

The range was below the Zacks Consensus Estimate for the year which had called for $1.23. In the last week, the one covering analyst for the year lowered estimates to $1.20, or the high end of company's guidance range. The first quarter Zacks Consensus Estimate also fell by a penny to 31 cents.

Value Fundamentals

Dress Barn is now a Zacks #2 Rank (buy) stock. It is a little cheaper than when I last reviewed it in June. The company now trades at 13.9x forward earnings compared to 14.12 last June. It has a price-to-book ratio of 1.73. Dress Barn also has a solid 1-year return on equity of 11.4%.

Read the June 16 article.

Update to Previous Value Zacks Rank Buy Stocks

Casey's General Stores Inc. (CASY - Snapshot Report) saw same store sales rise 6.4% in the fiscal first quarter thanks to better gasoline margins. The company has surprised on estimates 2 out of the last 4 quarters by an average of 17.50%. CASY is trading with a forward P/E of 14.42. Read the full article.

Lincoln Educational Services Corporation (LINC - Snapshot Report) reported two record quarters in a row and raised guidance as its student population swelled. It has surprised on estimates 4 quarters in a row by an average of 125.28%. LINC is trading with a PEG ratio of just 0.90. Read the full article.

Goldman Sachs Group Inc. (GS - Analyst Report) is hitting new 52-week highs but its stock remains cheap as earnings estimates rise. The company is trading at just 10.9x estimates. As trading revenues have soared, analysts expect year over year earnings growth of 261.78%. Read the full article.

Del Monte Foods Company (DLM) posted record first quarter earnings as sales rose 12%. The company has posted big surprises the last four quarters, averaging 246.91%. DLM is trading at 12.1x forward earnings. Read the full article.

Read the full analyst report on ASNA