DEBS Deb Shops (MM)

Updates Full-Year Sales and Earnings Estimates PHILADELPHIA, Oct. 5 /PRNewswire-FirstCall/ -- Deb Shops, Inc. (NASDAQ:DEBS) today reported that comparable store sales increased 6.8% for the month ended September 30, 2006. Total sales increased 10.4% to $28.3 million from $25.6 million for the month ended September 30, 2005. The Company reports financial results on the calendar month. Therefore, differences in timing will occur when comparing Deb Shops' results to those of retailers reporting on a 4-5-4 calendar. During the month of September 2006, there were five Saturdays compared to four Saturdays in September 2005. The month of October 2006 will have one fewer Saturday than October 2005. Based on current information, Deb Shops expects fiscal 2007 sales to be in the range of $325 million to $330 million, versus prior guidance of $320 to $325 million. This is based on a projected low- to mid-single-digit comparable store sales decrease for the remainder of the fiscal year, offset by net new store growth. Accordingly, fiscal 2007 earnings per share are expected to range from $1.40 to $1.50, versus prior guidance of $1.30 to $1.40. Marvin Rounick, President and CEO of Deb Shops, stated, "We were pleasantly surprised by our September sales performance, which includes the benefit of an additional Saturday in 2006 compared to 2005. Our performance during September indicates that the negative business conditions we experienced during the summer of 2006 may not be as severe as we originally anticipated. As a result, we have revised our sales and earnings expectations for the remainder of fiscal year 2007." For the remainder of fiscal year 2007, Deb Shops, Inc. expects to report monthly sales according to the following calendar: Month End Reporting Date October 2006 November 2, 2006 November 2006 December 5, 2006* December 2006 January 4, 2007 January 2007 February 2, 2007* *Denotes dates that differ from reporting dates under the 4-5-4 calendar. 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 336 specialty apparel stores in 42 states under the DEB and Tops 'N Bottoms names. The Company has made in this release, and from time to time may otherwise make, "forward-looking statements" (as that term is defined under federal securities laws) concerning the Company's future operations, performance, profitability, revenues, expenses, earnings and financial condition. This release includes, in particular, forward-looking statements regarding expectations of future performance, store openings and closings and other matters. Such forward-looking statements are subject to various risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors. Such factors may include, but are not limited to, the Company's ability to improve or maintain sales and margins, respond to changes in fashion, find suitable retail locations and attract and retain key management personnel. Such factors may also include other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2006. The Company assumes no obligation to update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. DATASOURCE: Deb Shops, Inc. CONTACT: Barry Susson, Chief Financial Officer, Deb Shops, Inc., +1-215-676-6000 x362, or Brendon Frey, Integrated Corporate Relations, +1-203-682-8200 Web site: http://www.debshops.com/

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