SECAUCUS, N.J.--(BUSINESS WIRE)--July 9, 2001--The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today announced sales of $43.4 million for the five-week period ended July 7, 2001, a 5% increase over sales of $41.5 million reported for June 2000.

Comparable store sales for the five-week period decreased 16% as compared to a 4% increase for the restated five-week period ended July 8, 2000. The Company opened 2 new stores during June 2001. Based on current sales trends, the Company now anticipates second quarter results to range between a loss of $0.13 to $0.17 per share.

Total sales for the twenty-two weeks ended July 7, 2001 increased 17% to $240.1 million from $205.8 million reported in the year-ago period. Year-to-date, comparable store sales decreased 7% versus a 5% increase in the prior year period.

"Our revised outlook for the second quarter reflects an overall slowdown in store traffic, which we attribute to a difficult economic environment. Beginning in the third quarter, we will increase our level of fashion merchandise to generate greater excitement in our stores and improve our sales and profit margin," stated Ezra Dabah, Chairman and Chief Executive Officer. "Despite the shortfall in sales, our inventory per store for Spring and Summer is lower than last year's levels. We expect to enter the important second half of the year without the need for excessive markdowns or promotions."

In conjunction with The Children's Place June sales release, you are invited to listen to the Company's pre-recorded June sales call with Seth Udasin, Chief Financial Officer and Treasurer, which will be available beginning at 8:00 a.m. Eastern Time today through July 19, 2001. To access the call, please visit the following web address: http://www.childrensplace.com/Info/CompanyInfo.jsp or dial (402) 530-9317. This call will be held in lieu of the previously announced sales call scheduled for July 12, 2001.

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 7, 2001, the Company operated 460 stores in 44 states. The Company also sells its merchandise through its virtual store located at 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.

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