United States Of America : Net loss soars higher at The Children's Place in Q2FY16

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Net loss soars higher at The Children's Place in Q2FY16

27
Aug '15

Net loss for the three months to August 1, 2015 soared higher over the same period of the earlier fiscal at US based kids apparel retailer The Children's Place.

For the second quarter of fiscal 2016, the retailer said its net loss amounted to $13.7 million, or $0.67 loss per diluted share compared to net loss of $10.7 million, or $0.49 loss per diluted share in the prior fiscal second quarter.

“Adjusted net loss however was lower at $6.8 million or $0.33 loss per diluted share, inclusive of a negative $0.02 impact due to foreign exchange,” the clothing retailer said in a press release.

Net sales were down at $366.5 million in the reporting quarter as against net sales of $384.6 million for the second quarter of fiscal 2015, while comparable retail sales declined 3.5 per cent year on year.

“The quarter included the negative impact of approximately $6.4 million from currency exchange rate fluctuations,” Children's Place added.

For the second quarter of current fiscal, gross profit fell to $115.0 million compared to $119.1 million in the same quarter last fiscal.

Selling, general and administrative expenses were $118.3 million vis-a-vis $117.1 million in the second quarter of fiscal 2015.

For the quarter under review, operating loss also rose higher at $20.1 million as against $16.5 million in previous year's second quarter.

During the second quarter, the Company recorded charges of $11.2 million for unusual items, which include, certain non-recurring items, costs related to a class action wage and hour legal settlement, impairment charges, etc.

Consistent with its store fleet optimisation initiative, the Company opened 1 store and closed 7 during the second quarter of fiscal 2016.

It ended the second quarter with 1,086 stores and square footage of 5.07 million, a decrease of 2.8 per cent compared to the prior year's same period.

The Company's international franchise partners opened 6 stores in the second quarter, and ended the quarter with 85 international franchise stores in 11 countries.

During the second quarter of fiscal 2014, the retailer returned approximately $24 million to shareholders through the repurchase of 324,100 shares and its quarterly dividend payment.

Year to date, the retailer has repurchased 971,800 shares for approximately $62 million and since 2009 and has returned over $560 million to its investors through share repurchases and dividends.

At the end of the second quarter of 2015, approximately $78 million remained available for future share repurchases.

Additionally, the board of directors approved a quarterly dividend of $0.15 per share, payable on October 8, 2015 to shareholders of record at the close of business on September 17, 2015. (AR)

Fibre2Fashion News Desk – India

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