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1st Quarter 1999 Earning Release

West Caldwell, New Jersey - May 13, 1999 - The Children's Place Retail Stores, Inc. (Nasdaq:PLCE) today reported record sales and earnings for the first quarter ended May 1, 1999.

Net sales for the 13-week quarter increased 65% to $92.6 million, compared with $56.0 million for the same period in 1998.
Comparable store sales increased 32% for the quarter, compared with a 7% increase for the same period last year.
Net earnings were $7.4 million, up 169% from $2.7 million a year earlier.
Diluted earnings per share increased to $0.28, compared with $0.11 per share in the 1998 period.
The Company opened 30 new stores during the first quarter.

"We continue to be pleased by the strong customer reaction to our brand as reflected in our 32% comp store gains for the quarter," said Ezra Dabah, Chairman and Chief Executive Officer. "We are especially encouraged by the sales results of the 30 new stores opened during the quarter."

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 1, 1999, the Company operated 239 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 1, 1999

 
May 2, 1998

Net Sales $
92,621
  $
55,999
Cost of sales
53,298

 
34,084

Gross profit
39,323
 
21,915
Selling, general, and administrative expenses
22,594
 
14,460
Pre-opening costs
1,201
 
1,110
Depreciation and amortization
3,296

 
1,663

Operating income
12,232
 
4,682
Interest (income) expense, net
(150)
 
59
Other expense, net
5

 
0

Income before income taxes
12,377
 
4,623
Provision for income taxes
4,994

 
1,881

Net income $
7,383
  $
2,742
Diluted earnings per share
$
0.28
  $
0.11
Diluted weighted average number of shares outstanding
26,620
 
25,605


THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED BALANCE SHEET
(In thousands)
(Unaudited)


 
May 1, 1999

 
May 2, 1998

Current assets:          
Cash and cash equivalents $
26,015
  $
3,570
Accounts receivable
4,910
 
2,940
Inventories
28,187
 
17,977
Other current assets
10,384

 
15,915

Total current assets

69,496
 
40,402
Property and equipment, net
55,452
 
35,407
Other assets, net
7,598

 
7,213

Total assets $
132,546

  $
83,022

Current liabilities:

         
Accounts payable $
19,060
  $
9,186
Accrued expenses and other current liabilities
21,349

 
9,540

Total current liabilities
40,409
 
18,726
Other liabilities
3,334

 
2,835

Total liabilities
43,743
 
21,561
Stockholders' equity
88,803

 
61,461

Total liabilities and stockholders' equity $
132,546

  $
83,022