1st Quarter 1998 Earnings Release
WEST CALDWELL, New Jersey - May 21, 1998 -- The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today reported record sales and earnings for the first quarter ended May 2, 1998.
Net sales for the 13-week quarter increased 43% to a record $56.0 million, compared with $39.2 million for the same period in 1997.
Comparable store sales increased 7% for the quarter, compared with a 5% increase for the same period last year.
Net earnings were a record $2.7 million, up 171% from $1.0 million a year earlier.
Diluted earnings per share increased 175% to $0.11 per share, compared with $0.04 per share in the 1997 period.
The Company opened 23 new stores during the first quarter, including its first stores in the Atlanta, St. Louis and Kansas City markets.
"Our strong first quarter performance was a result of the continued success of our unique store concept," said Ezra Dabah, Chairman and Chief Executive Officer. "Our sales and gross profit gains were driven by strong customer acceptance of our spring and summer lines across all of our divisions, led by the growth of our newborn department. In addition, the improvement in gross profit is also related to effective sourcing of our merchandise, an integral part of our strategy."
The Children's Place Retail Stores, Inc. is a leading specialty retailer of high quality, value-priced apparel and accessories for children, newborn to age twelve. The Company designs, contracts to manufacture and sells its products under the "The Children's Place" brand name. As of May 2, 1998, the Company operated 178 stores located primarily in regional shopping malls in the eastern half of the United States.
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
|
13 Weeks
Ended:
|
|
May 2, 1998
|
May 3, 1997
|
||||
| Net Sales | $ |
55,999
|
$ |
39,203
|
|
| Cost of sales |
33,866
|
25,185
|
|||
| Gross profit |
22,133
|
14,018
|
|||
| Selling, general, and administrative expenses |
14,678
|
9,695
|
|||
| Pre-opening costs |
1,110
|
472
|
|||
| Depreciation and amortization |
1,663
|
1,233
|
|||
| Operating income |
4,682
|
2,618
|
|||
| Interest expense, net |
59
|
828
|
|||
| Other expense, net |
0
|
101
|
|||
| Income before income taxes |
4,623
|
1,689
|
|||
| Provision for income taxes |
1,881
|
678
|
|||
| Net income | $ |
2,742
|
$ |
1,011
|
|
| Net income per
share: |
|
|
|||
| Basic |
$
|
0.11
|
$
|
0.05
|
|
| Diluted |
$
|
0.11
|
$
|
0.04
|
|
| Weighted average number of shares outstanding: | |||||
| Basic |
24,660
|
20,421
|
|||
| Diluted |
25,605
|
23,804
|
|||
CONDENSED BALANCE SHEET
(In thousands)
(Unaudited)
|
May 2, 1998
|
May 3, 1997
|
||||
| Current assets: | |||||
| Cash and cash equivalents | $ |
3,570
|
$ |
765
|
|
| Accounts receivable |
2,940
|
1,545
|
|||
| Inventories |
17,977
|
14,829
|
|||
| Other current assets |
15,915
|
9,392
|
|||
|
Total current assets |
40,402
|
26,531
|
|||
| Property and equipment, net |
35,407
|
23,416
|
|||
| Other assets, net |
7,213
|
15,951
|
|||
| Total assets | $ |
83,022
|
$ |
65,898
|
|
|
Current liabilities: |
|||||
| Revolving credit facility | $ |
0
|
$ |
0
|
|
| Accounts payable |
9,186
|
8,165
|
|||
| Accrued expenses and other current liabilities |
9,540
|
7,372
|
|||
| Total current liabilities |
18,726
|
16,196
|
|||
| Long term debt |
0
|
18,970
|
|||
| Other liabilities |
2,835
|
2,422
|
|||
| Total liabilities |
21,561
|
37,588
|
|||
| Stockholders' equity |
61,461
|
28,310
|
|||
| Total liabilities and stockholders' equity | $ |
83,022
|
$ |
65,898
|
|