The Children's Place Updates Financial Outlook for 2002 Second Quarter & Full Year
As a result, the Company now expects a net loss per share of $0.35 to $0.40 for the second quarter ending August 3, 2002.
"While we experienced some improvement in business in early July, sales have significantly declined over the last two weeks. As a result, we are left with more summer merchandise than we expected and are taking additional markdowns to clear this inventory and avoid further distracting from the presentation of our back-to-school floor set," said Ezra Dabah, Chairman and Chief Executive Officer of The Children's Place. "Based on current sales trends, coupled with lower back-to-school inventory levels, we are taking a more cautious outlook toward the balance of the year, and now expect second half earnings to be equal to last year's results. We are confident that the merchandise strategies we have been implementing will maintain the company on a path of continued growth and profitability."
The Children's Place will report July sales results on Thursday, August 8, 2002, and second quarter results on Thursday, August 15, 2002, before the market opens.
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 6, 2002, the Company operated 575 stores in 47 states. The Company also sells its merchandise through its virtual store located at www.childrensplace.com.
This press release 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 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
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