Children's Place delivers top-line growth in third quarter
The Children's Place Retail Stores, Inc. reported financial results for the third quarter and fiscal year-to-date 2009. Results from continuing operations for the third quarter and fiscal year-to-date periods ended October 31, 2009 and November 1, 2008 are based on The Children's Place business only. The Disney Store North America business has been classified as discontinued operations in accordance with generally accepted accounting principles reflecting the Company's decision to exit the business.
• Net sales from continuing operations for the third quarter of 2009 increased 3% to $463.2 million, compared to $450.6 million in the third quarter of 2008.
• Comparable retail sales, which include online sales, declined 2% in the third quarter of 2009 following a 4% increase during the same period last year.
• Income from continuing operations was $38.2 million, or $1.38 per diluted share, in the third quarter of 2009, compared to $28.4 million, or $0.96 per diluted share, in the third quarter of 2008.
• Net income, which includes the impact of discontinued operations, was $37.8 million in the third quarter of 2009, or $1.37 per diluted share, compared to $24.1 million, or $0.81 per diluted share, in the third quarter of 2008.
• Inventory per square foot increased 3% at the end of the third quarter of 2009 compared to the third quarter of 2008.
• At the end of the third quarter of 2009, the Company had a cash balance of $104.4 million and no bank borrowings.
• During the third quarter of 2009, the Company opened 13 stores, and ended with 950 stores.
• Net sales from continuing operations were $1,180.8 million for fiscal year-to-date 2009, a 1% decline compared to $1,188.9 million for the same period of the prior year.
• Comparable retail sales declined 3% year-to-date 2009 following a 6% increase last year.
• Income from continuing operations was $54.7 million, or $1.88 per diluted share, fiscal year-to-date 2009, compared to $50.6 million, or $1.72 per diluted share, last year. The Company's fiscal year-to-date income from continuing operations includes the following items which the Company deems to be unusual or one-time in nature:
o In fiscal 2009, gains included a $4.8 million income tax benefit from excess foreign tax credits generated by the repatriation of cash from Canada, a $4.7 million, pre-tax, favorable settlement of an IRS employment tax audit related to stock options, and a tax benefit of $4.5 million from the settlement of an IRS income tax audit. These gains were partially offset by $2.9 million of pre-tax expenses associated with previously announced restructuring programs, $2.4 million of pre-tax expenses associated with the pre-payment of the Company's term loan, $2.0 million of pre-tax expenses incurred in connection with the recent proxy contest and an asset impairment charge of $0.8 million, pre-tax, for an underperforming store that has been open for less than two years.