Outlook
The Company updated its guidance for fiscal 2011 and now projects earnings per diluted share from continuing operations will be in the range of $3.24 to $3.29 for fiscal 2011, compared to its previous guidance of $3.13 to $3.25. The Company is providing initial guidance for earnings per diluted share from continuing operations for the fourth quarter of 2011 to be in the range of $1.19 to $1.24, assuming flat to slightly positive comparable retail sales.
The Company expects gross margin expansion of 30 to 50 basis points in fiscal 2011 due to a higher IMU, lower markdowns and disciplined inventory management. SG&A is expected to deleverage 60 to 80 basis points, as the Company anticipates higher variable and equity compensation payout in fiscal 2011.
In addition, the Company plans to remodel 12 stores in January 2012 which is expected to negatively impact earnings by approximately 4 cents per diluted share for the fourth quarter and fiscal 2011.
The earnings guidance for the fourth quarter and fiscal 2011 assumes that currency exchange rates will remain where they are today, 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 Company designs, contracts to manufacture and sells fashionable, high-quality merchandise at value prices, primarily under the proprietary "The Children's Place" brand name.
The Children's Place Retail Stores Inc
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