Secaucus, New Jersey - August 11, 2000 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today reported record sales and earnings for the second quarter ended July 29, 2000.

"We are extremely gratified with the Company's record performance by reporting a profit in what is traditionally the weakest quarter of the year for the Company. This strong performance was driven by an exciting Summer line, our strategically planned promotional activity and a well-received Back-to-School line, together with the continued improvement of our operating and marketing strategies," commented Ezra Dabah, Chairman and Chief Executive Officer.

Second Quarter

• Net sales for the quarter increased 46% to $107.7 million, compared with $73.9 million for the same period in 1999.
• Comparable store sales increased 7% for the quarter, on top of a 19% increase for the same period last year.
• Net earnings were $1.5 million, up 8% from $1.4 million a year earlier.
• Diluted earnings per share increased to $0.06 compared with $0.05 per share in the 1999 period.
• The Company opened 36 new stores during the second quarter.

Six Months

• Net sales for the six-month period increased 43% to $237.8 million from $166.5 million in the same period in 1999.
• Comparable store sales increased 6% for the period, compared with a 26% increase for the same period last year.
• Net earnings were $10.9 million, up 24% from $8.8 million a year earlier.
• Diluted earnings per share increased to $0.41 compared with $0.33 in the 1999 period.
• The Company opened 79 new stores during the six month period.

Mr. Dabah concluded, "Our aggressive growth strategy is on schedule with 36 new stores opened this quarter, bringing the total new stores opened in the first half of the year to 79 stores. Once again, it is exciting to note that our new stores continue to perform especially well, exceeding our plans in every new market. We now look forward to opening a total of 105 stores during fiscal 2000."

The Children's Place will host a webcast of its second quarter earnings conference call today at 10:00 a.m., Eastern Standard Time. Investors and the media are invited to listen to the call at the Company's Web site at www.childrensplace.com/Info/CompanyInfo.jsp

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 July 29, 2000, the Company operated 371 stores in 42 states and sells merchandise through its World Wide Web site located at www.childrensplace.com

This press release contains certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Company's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof.

THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)

13 Weeks Ended:

26 Weeks Ended:

	July 29, 2000			July 31,1999			July 29, 2000			July 31, 1999
Net Sales	$	107,690		$	73,920		$	237,772		$	166,541
Cost of sales	67,160			47,123			140,384			100,421
Gross profit	40,530				26,797			97,388		66,120
Selling, general, and administrative expenses	30,952				20,855			65,128		43,449
Pre-opening costs	1,586				767			4,269		1,968
Depreciation and amortization	5,054			2,891			9,525			6,187
Operating income	2,938				2,284			18,466		14,516
Interest (income) expense, net	277				(39)			458		(189)
Other expense, net	124			40			127			45
Income before income taxes	2,537				2,283			17,881		14,660
Provision (benefit) for income taxes	1,021			881			6,991			5,875
Net income (loss)	$	1,516		$	1,402		$	10,890		$	8,785
Diluted earnings (loss) per share		$0.06			$0.05			$0.41			$0.33
Diluted weighted average number of shares outstanding		26,662			26,742			26,511			26,681

 

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

	July 29, 2000			July 31, 1999
Current assets:
Cash and cash equivalents	$	4,769		$	1,722
Accounts receivable	14,368			5,063
Inventories	62,914			46,438
Other current assets	16,493			16,557
Total current assets	98,544			69,780
Property and equipment, net	110,264			70,925
Other assets, net	9,973			7,588
Total assets	$	218,781		$	148,293
Current liabilities:
Revolving credit facility		28,968			16,549
Accounts payable		27,272			18,177
Accrued expenses and other current liabilities	25,032			18,457
Total current liabilities	81,272			53,183
Other liabilities	5,506			3,551
Total liabilities	86,778			56,734
Stockholders' equity	132,003			91,559
Total liabilities and stockholders' equity	$	218,781		$	148,293