Kids apparel retailer Children's Place sales grow by 10%
The Children's Place Retail Stores, Inc. today reported financial results for the third quarter and fiscal year-to-date ended November 1, 2008. Results from continuing operations for the third quarters and fiscal year-to-date periods ended November 1, 2008 and November 3, 2007 are based on The Children's Place business only.
The Disney Store North America ("DSNA") business has been classified as a discontinued operation in accordance with generally accepted accounting principles ("GAAP") reflecting the Company's exit of the business.
Net sales from continuing operations for the third quarter increased 5% to $450.6 million, compared to $430.6 million in the third quarter of 2007.
Comparable store sales increased 2% in the third quarter of 2008 on top of a 1% increase for the same period last year.
Income from continuing operations after tax was $28.4 million, or $0.96 earnings per share, in the third quarter of 2008, compared to $14.9 million, or $0.51 per share, in the third quarter of 2007.
The Company's third quarter income from continuing operations included several items which the Company deems to be unusual or one-time in nature, including:
In the third quarter of 2008, income of $5.9 million pre-tax, primarily from transition services being provided to the acquirer of the DSNA business; and
In the third quarter of 2007, severance expense of $4.0 million pre-tax, professional and legal fees of $2.3 million pre-tax associated with the Company's 2006 stock option investigation and related restatements, stock option tolling expense of $0.3 million pre-tax and fees for the review of strategic alternatives of $0.1 million pre-tax.
Excluding the unusual or one-time items mentioned above from the third quarters of both years, adjusted income from continuing operations after tax was $24.9 million, or $0.84 earnings per share, in the third quarter of 2008, compared to $19.4 million, or $0.66 per share, in the third quarter of 2007.
The third quarter income from continuing operations excluding these items is a non-GAAP measure. The Company believes the excluded items 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 income from continuing operations as reported is included in this press release in Table 3.
Net income, including the impact of discontinued operations, was $24.1 million in the third quarter of 2008, or $0.81 earnings per share, compared to $12.3 million, or $0.42 per share, for the same period last year.
During the third quarter, the Company opened 19 stores and closed one.
Net sales from continuing operations increased 10% to $1,188.9 million, for fiscal year-to-date 2008, compared to $1,077.1 million forthe same period of 2007. Comparable store sales increased 5% year-to-date 2008 on top of a 1% increase for the same period last year.