Tween Brands moves to profit in 3Q from loss

AP News
|
Posted: Nov 16, 2009 4:58 PM

Kids clothing retailer Tween Brands Inc. said Monday that higher sales and lower costs helped it climb to a third-quarter profit from a year-ago loss which included hefty restructuring expenses.

The clothing retailer, based in New Albany, Ohio, earned $5.9 million, or 23 cents per share, in the quarter that ended Oct. 31. That compares with a loss of $831,000, or 3 cents per share, a year earlier, which included an $11.5 million charge for restructuring efforts.

Adjusted profit of 58 cents per share beat a 26-cent-per-share consensus estimate of analysts polled by Thomson Reuters. The adjusted profit excludes a $2.8 million merger charge and a $3.9 million writedown in the value of assets.

Revenue rose 2 percent to $259.3 million from $254.3 million, also topping analysts' $232 million forecast. Sales at stores open at least a year fell 2 percent during the period, but were offset by a 35 percent jump in online and direct-to-customer sales.

"We continue to increase our share of the 7-14 Tween Girl apparel market and this has helped us significantly improve comparable store sales in the current economy. This momentum, along with the proposed merger with Dress Barn, which our stockholders are scheduled to vote on next week, has us very energized as we look forward to the future," said Chairman and CEO Michael Rayden in a statement.

Tween Brands shares rose 4 cents to $9.13 in after-hours trading Monday after closing at $9.09, up 4 percent on the day.