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
|
|