![]() |
UNITED STATES: Children's Place sales grow by 10%
The Children's Place Retail Stores, Inc. reported financial results for the third quarter and fiscal year-to-date ended November 1, 2008. Results from continuing operations for the third quarters and fiscal year-to-date periods ended November 1, 2008 and November 3, 2007 are based on The Children's Place business only.
The Disney Store North America ("DSNA") business has been classified as a discontinued operation in accordance with generally accepted accounting principles ("GAAP") reflecting the Company's exit of the business.
Third Quarter:
Net sales from continuing operations for the third quarter increased 5% to $450.6 million, compared to $430.6 million in the third quarter of 2007.
Comparable store sales increased 2% in the third quarter of 2008 on top of a 1% increase for the same period last year.
Income from continuing operations after tax was $28.4 million, or $0.96 earnings per share, in the third quarter of 2008, compared to $14.9 million, or $0.51 per share, in the third quarter of 2007.
The Company's third quarter income from continuing operations included several items which the Company deems to be unusual or one-time in nature, including:
In the third quarter of 2008, income of $5.9 million pre-tax, primarily from transition services being provided to the acquirer of the DSNA business; and
In the third quarter of 2007, severance expense of $4.0 million pre-tax, professional and legal fees of $2.3 million pre-tax associated with the Company's 2006 stock option investigation and related restatements, stock option tolling expense of $0.3 million pre-tax and fees for the review of strategic alternatives of $0.1 million pre-tax.
Excluding the unusual or one-time items mentioned above from the third quarters of both years, adjusted income from continuing operations after tax was $24.9 million, or $0.84 earnings per share, in the third quarter of 2008, compared to $19.4 million, or $0.66 per share, in the third quarter of 2007.
The third quarter income from continuing operations excluding these items is a non-GAAP measure. The Company believes the excluded items are not indicative of the performance of its core business and that by providing this supplemental disclosure to investors it will facilitate comparisons of its past and present performance.
A reconciliation of income from continuing operations as reported is included in this press release in Table 3.
Net income, including the impact of discontinued operations, was $24.1 million in the third quarter of 2008, or $0.81 earnings per share, compared to $12.3 million, or $0.42 per share, for the same period last year.
During the third quarter, the Company opened 19 stores and closed one.
Fiscal Year-to-Date:
Net sales from continuing operations increased 10% to $1,188.9 million, for fiscal year-to-date 2008, compared to $1,077.1 million forthe same period of 2007. Comparable store sales increased 5% year-to-date 2008 on top of a 1% increase for the same period last year.
Income from continuing operations after tax was $50.6 million, or $1.72 earnings per share, year-to-date 2008, compared to $14.2 million, or $0.49 per share, for the same period last year.
Excluding the unusual or one-time items from both years, income from continuing operations after tax was $44.7 million, or $1.52 earnings per share, year-to-date 2008, compared to $22.1 million, or $0.74 per share, for the same period 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 $43.6 million, or $1.48 earnings per share, year-to-date 2008, compared to a loss of $1.1 million, or $0.04 loss per share, for the same period last year.
Year-to-date, the Company opened 22 stores and closed six.
Chuck Crovitz, Interim Chief Executive Officer of The Children's Place Retail Stores, Inc., commented, "We were pleased with our sales and earnings growth during the third quarter, in spite of the weakening economic conditions and reduced shopper traffic.
We believe our positive results are attributable to the strength of The Children's Place brand -- which offers great color, outfitting and fashion at a tremendous value -- as well as the many actions the Company has taken over the past year to reduce inventory levels, right-size our cost structure, strengthen the balance sheet and refocus efforts on our core The Children's Place brand.
"We believe The Children's Place is uniquely well-positioned for this economy as we offer parents the fashion and value they are looking for, coupled with an excellent customer experience to help expedite and simplifyIncome from continuing operations after tax was $50.6 million, or $1.72 earnings per share, year-to-date 2008, compared to $14.2 million, or $0.49 per share, for the same period last year.
Excluding the unusual or one-time items from both years, income from continuing operations after tax was $44.7 million, or $1.52 earnings per share, year-to-date 2008, compared to $22.1 million, or $0.74 per share, for the same period 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 $43.6 million, or $1.48 earnings per share, year-to-date 2008, compared to a loss of $1.1 million, or $0.04 loss per share, for the same period last year.
Year-to-date, the Company opened 22 stores and closed six.
Chuck Crovitz, Interim Chief Executive Officer of The Children's Place Retail Stores, Inc., commented, "We were pleased with our sales and earnings growth during the third quarter, in spite of the weakening economic conditions and reduced shopper traffic.
We believe our positive results are attributable to the strength of The Children's Place brand -- which offers great color, outfitting and fashion at a tremendous value -- as well as the many actions the Company has taken over the past year to reduce inventory levels, right-size our cost structure, strengthen the balance sheet and refocus efforts on our core The Children's Place brand.
"We believe The Children's Place is uniquely well-positioned for this economy as we offer parents the fashion and value they are looking for, coupled with an excellent customer experience to help expedite and simplify their holiday shopping. However, we expect this holiday season to be a very challenging one as the macroeconomic environment remains weak and is impacting consumers' purchasing power."
![]() |
Source: Agencies • News Courtesy: BharatTextile.com
|
![]() |