News Flash

Children's Place both brands registers higher promotional levels

11 Jan '08

2 min read

The Children's Place Retail Stores Inc announced sales results for the five-week period ended January 5, 2008.

Total sales for the five-week period ended January 5, 2008 were $314.6 million, a 1% decrease compared to sales of $318.5 million for the five-week period ended December 30, 2006. Consolidated comparable store sales increased 2% on top of last year's 6% comparable store sales increase. During fiscal December, the Company opened one The Children's Place store and seven Disney Stores.

For the nine-week holiday selling period, The Children's Place brand achieved a 7% increase in comparable store sales on top of a 4% increase for the same period last year. Disney Store reported a 5% decline in comparable store sales compared to a 12% increase last year. Both brands had higher promotional levels during the 2007 holiday season than last year.

The Company also provided an update on its strategic review that began in October, 2007. As part of this ongoing process, during December the Company retained an industry-leading retail consulting firm to help identify operational improvements that are expected to deliver enhanced shareholder value.

Additionally, the Board of Directors and management team are in the process of assessing a wide variety of options to improve the Company's business and competitive position, including a long-term strategy to realize the full potential for the Disney Store brand.

Separately, the Company commented that it will not be able to hold its fiscal 2006 Shareholder Meeting by the February 3, 2008 deadline required by the Nasdaq Stock Market listing rules due to the delayed filing of its Annual Report on Form 10-K which was filed on December 5, 2007. Accordingly, the Company will request an extension to the meeting deadline from Nasdaq and expects to hold the meeting in the Spring of 2008.

In conjunction with today's December sales release, you are invited to listen to the Company's pre-recorded monthly sales call, which will be available beginning at 7:30 a.m. Eastern Time today through Thursday, January 17, 2008.

The Children's Place Retail Stores Inc

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