Home / Knowledge / News / Apparel/Garments / Comparable sales decline at The Children's Place
Comparable sales decline at The Children's Place
May '12
The Children's Place Retail Stores Inc. the largest pure-play children's specialty apparel retailer in North America, announced net sales increased 2% to $438.5 million for the thirteen weeks ended April 28, 2012, compared to $430.8 million in the first quarter of fiscal 2011. Comparable retail sales declined 0.7% for the quarter.

GAAP net income was $23.6 million, or $0.96 per diluted share, in the first quarter of 2012. As adjusted, net income was $27.1 million, or $1.10 per diluted share, compared to $29.1 million, or $1.10 per diluted share, in the first quarter of 2011.

During the quarter, the Company undertook several actions to reduce operating costs going forward, including consolidating from three to two US distribution centers, streamlining its field workforce and restructuring corporate headquarters, which it expects will result in annual savings of approximately $9 million.

The Company incurred expenses of approximately $2.8 million associated with these actions during the quarter which the Company deems to be unusual in nature. Additionally, during the quarter the Company impaired an oversized store, incurred accelerated depreciation for seven Canadian store remodels, and wrote off obsolete supplies and fixture costs.

Adjusted net income is a non-GAAP measure. The Company believes the excluded transactions are not indicative of the performance of its core business and that by providing this supplemental disclosure to investors it will facilitate comparisons of its past and present performance. A reconciliation of net income as reported is included in this press release in Table 3.

"We made good progress in the first quarter - tightly managing our inventory, reducing expenses and improving operational efficiencies across the organization - and we delivered adjusted earnings per share consistent with last year, in spite of significantly higher product costs," commented Jane Elfers, President and Chief Executive Officer.

The Company opened 18 stores and closed 5, ending the first quarter with 1,062 stores.

Share Repurchase Program

During the first quarter of fiscal 2012, the Company repurchased 377 thousand shares for $19.2 million and completed the $100 million share repurchase program announced in March 2011. A new $50 million share repurchase program was authorized by the Board of Directors in March 2012. Under the new program, the Company may repurchase shares in the open market at current market prices at the time of purchase or in privately negotiated transactions.

The timing and actual number of shares repurchased under the program will depend on a variety of factors including price, corporate and regulatory requirements, and other market and business conditions, and the Company may suspend or discontinue the program at any time, and may thereafter reinstitute purchases, all without prior announcement.

The Company updated its guidance to reflect first quarter results and now projects that non-GAAP adjusted earnings per diluted share will be between $3.15 and $3.30, compared to its initial guidance of $3.10 to $3.30, assuming positive low-single digit comparable retail sales.

The Company provided initial guidance for the second quarter of fiscal 2012, and is forecasting a non-GAAP adjusted loss per share between $0.65 and $0.70, assuming positive low-single digit comparable retail sales.

This earnings guidance assumes that currency exchange rates will remain where they are and does not include the impact of further potential share repurchases.

The Children's Place is the largest pure-play children's specialty apparel retailer in North America.

The Children's Place Retail Stores Inc

Must ReadView All

Textiles | On 23rd Mar 2017

South Korean Samil Spinning acquires Buhler Quality Yarns

South Korean yarn producer Samil Spinning has acquired US based...

Apparel/Garments | On 23rd Mar 2017

E-retailers to pay up to 1% TCS under GST

E-retail marketplaces will need to deduct up to 1 per cent tax...

Textiles | On 23rd Mar 2017

Lanxess to expand chemical intermediates capacity

The Advanced Industrial Intermediates business unit of German...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search