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Children's Place achieves solid top-line growth for the quarter
21 Aug '08
5 min read
• Comparable store sales increased 7% year-to-date 2008 compared to a 1% increase last year.
• Income from continuing operations after tax was $22.2 million, or $0.75 earnings per share, year-to-date 2008, compared to a loss of $0.7 million, or $0.03 loss per share, last year.
• Excluding the unusual or one-time items from both years, income from continuing operations after tax was $19.8 million, or $0.67 earnings per share, year-to-date 2008, compared to $2.5 million, or $0.09 earnings per share, last year. As previously noted, this is a non-GAAP measure which the Company is providing as a supplemental disclosure.
• Net income including the impact of discontinued operations was $19.5 million, or $0.66 earnings per share, year-to-date 2008, compared to a loss of $13.4 million, or $0.46 loss per share, last year.
• Year-to-date, the Company opened three stores and closed five.
As previously announced, during the second quarter the Company closed on an $85 million five-year term loan to ensure adequate liquidity would be available in the event that the difficult economic conditions persist and adversely impact the Company's business.
Under negotiated terms of the loan, the Company has voluntary prepayment opportunities and is required to repay 50% of excess cash flow, as defined by the agreement, at the end of each fiscal year. The Company also signed a new credit agreement for a $200 million asset-based revolving credit facility during the quarter which replaced the revolving credit facility previously in effect.
Chuck Crovitz, Interim Chief Executive Officer of The Children's Place Retail Stores, Inc., commented, "We are gratified to see that the hard work and dedication of our entire team continued to pay off in the second quarter.
Overall, we achieved solid top-line growth for the quarter while implementing cost reduction initiatives to better support our value positioning. Our merchandise assortment for summer was very well-received by customers and our sharpened E-commerce marketing and merchandising efforts helped to drive web traffic and sales.
"We expect that consumer purchasing power will continue to be pressured by ongoing weakness in the economy and we are maintaining our focus on offering great color, great outfitting, and great fashion at a tremendous value."
• Income from continuing operations after tax was $22.2 million, or $0.75 earnings per share, year-to-date 2008, compared to a loss of $0.7 million, or $0.03 loss per share, last year.
• Excluding the unusual or one-time items from both years, income from continuing operations after tax was $19.8 million, or $0.67 earnings per share, year-to-date 2008, compared to $2.5 million, or $0.09 earnings per share, last year. As previously noted, this is a non-GAAP measure which the Company is providing as a supplemental disclosure.
• Net income including the impact of discontinued operations was $19.5 million, or $0.66 earnings per share, year-to-date 2008, compared to a loss of $13.4 million, or $0.46 loss per share, last year.
• Year-to-date, the Company opened three stores and closed five.
As previously announced, during the second quarter the Company closed on an $85 million five-year term loan to ensure adequate liquidity would be available in the event that the difficult economic conditions persist and adversely impact the Company's business.
Under negotiated terms of the loan, the Company has voluntary prepayment opportunities and is required to repay 50% of excess cash flow, as defined by the agreement, at the end of each fiscal year. The Company also signed a new credit agreement for a $200 million asset-based revolving credit facility during the quarter which replaced the revolving credit facility previously in effect.
Chuck Crovitz, Interim Chief Executive Officer of The Children's Place Retail Stores, Inc., commented, "We are gratified to see that the hard work and dedication of our entire team continued to pay off in the second quarter.
Overall, we achieved solid top-line growth for the quarter while implementing cost reduction initiatives to better support our value positioning. Our merchandise assortment for summer was very well-received by customers and our sharpened E-commerce marketing and merchandising efforts helped to drive web traffic and sales.
"We expect that consumer purchasing power will continue to be pressured by ongoing weakness in the economy and we are maintaining our focus on offering great color, great outfitting, and great fashion at a tremendous value."
Children's Place Retail Stores Inc
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