Home / Knowledge / News / Apparel/Garments / Children's Place reduces Q2FY15 net loss by more than 50%
Children's Place reduces Q2FY15 net loss by more than 50%
23
Aug '14
Pure-play children's specialty apparel retailer and NASDAQ-listed, The Children's Place managed to reduce its net loss by more than 50 percent year-on-year for the thirteen weeks to August 2, 2014 period.

Net loss slipped to $10.7 million or negative $0.49 earnings per share in the second fiscal quarter of 2014, compared to a net loss of $23.6 million or negative $1.05 per share from the same fiscal quarter of 2013.

Net sales at Children's Place slipped marginally to $384.6 million in the second quarter of 2014, vis-à-vis, $382.4 million in the second quarter of 2013. However, comparable retail sales rose 0.8 percent in the second quarter 2014.

Children's Place said the second quarter of 2014 quarter included a negative impact of approximately $2.8 million from currency exchange rate fluctuations.

Gross profit in the 13 weeks to August 2013 period stood at $119.1 million, down from $126.2 million in the second quarter of 2013, while gross profit margins as a percentage of sales declined 200 basis points to 31 percent of sales, from fixed costs and merchandise margin deleverage.

Children's Place was able to reduce its selling, general and administrative expenses in the second quarter of 2014 to $117.1 million compared to $124.4 million in the second quarter of 2013.

Operating loss too fell to $16.5 million in the quarter under review, against operating loss of $35.6 million in the second quarter of 2013. Children's Place said that in the second quarter of 2014, it incurred asset impairment charges of $4.0 million.

Children's Place opened 10 stores and closed 3 during the second quarter of 2014 and ended the quarter with 1,113 stores spread over 5.215 million sq. feet, down 1.4 percent compared to the prior year quarter. In the same quarter, it also opened 6 overseas stores.

During the second quarter of 2014, Children's Place repurchased 301,301 shares for approximately $14.5 million. At the end of the second quarter, $73.7 million of the $100 million share repurchase program authorized in March 2014 remained available for future share repurchases.

Children's Place now expects full-year 2014 adjusted net income per diluted share to be in the range of $2.95 to $3.05, which compares to previous guidance of adjusted net income per diluted share in the range of $2.90 to $3.05.

This guidance assumes comparable retail sales for the year will be flat to negative 1 percent. The retailer estimates a $0.09 negative impact from foreign exchange in fiscal 2014.

CEO Jane Elfers said, “We remain committed to the continued execution of our key initiatives, ecommerce growth, expansion of our wholesale and global business, investments in seamless retail and state of the art systems, and fleet rationalization to deliver long-term sustainable growth."

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Lee Cooper

Apparel/Garments | On 28th Mar 2017

CCI clears FLFL proposal to divest Lee Cooper

The Competition Commission (CCI) of India has approved the proposal...

Textiles | On 28th Mar 2017

Bardoli CEFC to benefit south Gujarat MSMEs

India’s first common engineering facility centre (CEFC) at Bardoli,...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


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