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

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Courtesy: IRRC Institute

Apparel/Garments | On 27th May 2017

Up to 7.5 mn retail jobs in US at risk due to automation

About 6-7.5 million retail jobs in the US are likely to be automated...

Textiles | On 27th May 2017

Indian textiles ministry promotes wool sector

The ministry of textiles has taken multiple steps to promote the wool ...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Mark Paterson
Technical Absorbents Ltd

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

Marten Alkhagen
Swerea IVF AB

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search