SECAUCUS, N.J.--(BUSINESS WIRE)--July 8, 2004--The Children's Place Retail Stores, Inc. (Nasdaq: PLCE)

    --  Total Sales Increased 17%; Comparable Store Sales Increased 9%

    --  Company Anticipates Loss Per Share of $0.38 to $0.40 for
        Second Quarter

    --  Company Anticipates Fiscal 2004 EPS Growth of Approximately
        40%

The Children's Place Retail Stores, Inc. (Nasdaq: PLCE), today announced sales of $71.5 million for the five-week period ended July 3, 2004, a 17% increase compared to sales of $61.0 million reported for June 2003. Comparable store sales for the five-week period increased 9%, as compared to a 3% increase in the prior year period. During the month, the Company opened two stores and closed one store.

Total sales for the twenty-two weeks ended July 3, 2004, increased 22% to $354.5 million compared to sales of $290.3 million for the same period last year. Comparable store sales increased 13%, versus an 8% decrease in the same period last year. Year-to-date, the Company has opened 23 stores and closed two.

The Company stated that based on quarter-to-date financial performance and expectations for July, it anticipates reporting a loss per share in the range of $0.38 to $0.40 for the second quarter ending July 31, 2004, compared to a loss of $0.35 for the same period last year. For fiscal 2004, the Company anticipates earnings growth of approximately 40% over fiscal 2003.

"As we have previously discussed, factors impacting the second quarter include near term pressure on our initial markup, primarily due to continued investments in merchandise quality and increased cotton prices, as well as recent additions to senior management that we have not yet anniversaried," said Ezra Dabah, Chairman and Chief Executive Officer of The Children's Place. "We remain confident in the underlying strength of our business, given continued growth in comparable store sales transactions, comparable store traffic, and customer conversion rates. The strategic investments we are making in our business are yielding long term benefits, including continued increases in customer satisfaction and loyalty."

Separately, the Company noted that discussions are continuing with The Walt Disney Company to acquire and operate under a long-term license arrangement The Disney Store retail chain in the United States and Canada.

In conjunction with The Children's Place June sales release, you are invited to listen to the Company's pre-recorded monthly sales call, which will be available beginning at 7:30 a.m. Eastern Time today through Thursday, July 15, 2004. To access the call, please dial (402) 220-1182, or you may listen through the Investor Relations section of the Company's website, www.childrensplace.com.

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 ten. The Company designs, contracts to manufacture and sells its products under the "The Children's Place" brand name. As of July 3, 2004, the Company operated 712 stores, including 665 stores in the United States, 46 stores in Canada and one store in Puerto Rico. The Company also sells its merchandise through its virtual store located at www.childrensplace.com.

This press release and above referenced call may contain 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. Actual results, events, and performance may differ. Readers or listeners (on the call) are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by The Children's Place or any other person that the events or circumstances described in such statement are material.

    CONTACT: The Children's Place
             Seth Udasin, 201-558-2409
             or
             Heather Anthony, 201-558-2865

    SOURCE: The Children's Place Retail Stores, Inc.