"During the past six months we have refined our merchandise assortment, increased the penetration of our plus size business and continued our store expansion and remodel programs."
During the second quarter of fiscal 2008, Deb Shops opened three new stores, remodeled six existing locations and closed one store.
The Company also added a net of two plus-size departments and as of July 31, 2007, operated plus-size departments in 188 Deb Shops stores. For the year-to-date period, Deb Shops opened five new stores, remodeled nine existing locations and closed four stores.
Barry Susson, CFO of Deb Shops added, "We are pleased with our year-to-date performance, particularly given the challenging retail environment and the later start to the back-to-school selling season."
"We believe the progress we have made over the past several years to create a stronger, more well-balanced operating platform has enabled us to improve our financial position and continue to return value to our shareholders."
Deb Shops Inc is a national specialty retailer of fashionable apparel, shoes and accessories for juniors in both regular and plus sizes. The Company operates 338 specialty apparel stores in 42 states under the DEB and Tops 'N Bottoms names.
Merger Agreement:
As previously announced on July 27, 2007, the Company signed a definitive merger agreement in which Lee Equity Partners, LLC through its affiliate DSI Holdings, LLC ("DSI") will acquire 100% of the outstanding shares of Deb Shops for $27.25 per share of common stock in an all-cash transaction. Consummation of the proposed merger is subject to certain conditions.
Due to the signing of the merger agreement, the Company has discontinued providing earnings guidance and will not hold a second quarter earnings conference call.
marketing@alchempro.com
