SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
| Date of Report (date of earliest event reported) | February 26, 2004 |
(Exact name of registrant as specified in its charter)
|
Delaware
(State or other jurisdiction of incorporation) |
0-23071 (Commission File Number) |
31-1241495 (IRS Employer ID Number) |
| 915 Secaucus Road, Secaucus, New Jersey | 07094 |
| (Address of principal executive offices) | (Zip Code) |
| Registrant's Telephone Number, including area code: | (201) 558-2400 |
(Former name or former address, if changed since last report)
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
| Exhibit Number 99 |
Description Press release dated February 26, 2004. |
Item 12. Results of Operations and Financial Condition.
On February 26, 2004, The Children’s Place Retail Stores, Inc. issued a press release announcing financial information for the fiscal quarter and fiscal year ended January 31, 2004. A copy of this press release is included as Exhibit 99 hereto.
[Remainder of page intentionally left blank;
signature on following page.]
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
THE CHILDREN'S PLACE RETAIL STORES, INC. By: /s/ Seth L. Udasin Name: Seth L. Udasin Title: Vice President and Chief Financial Officer |
Dated: February 26, 2004
INDEX TO EXHIBITS
Current Report on Form 8-K
Dated February 26, 2004
The Childrens Place Retail Stores, Inc
| Exhibit No. 99 |
Description Press Release issued by the Company on February 26, 2004 |
EXHIBIT 99
PRESS RELEASE
FOR IMMEDIATE RELEASE
THE CHILDREN'S PLACE REPORTS 2003 FOURTH QUARTER
AND FISCAL YEAR FINANCIAL RESULTS
~ Net Sales Increased 19% for the Fourth Quarter;
Comparable Store Sales Increased 9% ~
~ Earnings Per Share Increased to $0.55, Compared to $0.09 Last Year ~
~ February Comparable Store Sales Up 22% Month-to-Date ~
Secaucus, New Jersey - February 26, 2004 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today reported financial results for the fourth quarter and fiscal year ended January 31, 2004.
Fourth Quarter
| • | Net sales for the fourth quarter increased 19% to $234.6 million, compared with $196.7 million for the same period in 2002. |
| • | Comparable store sales increased 9% in the quarter, versus a 19% decrease for the same period last year. |
| • | Net income was $15.2 million, compared to net income of $2.3 million a year earlier. |
| • | Earnings per share were $0.55 compared to earnings per share of $0.09 in the fiscal 2002 period. |
| • | The Company opened four new stores and closed two during the fourth quarter. |
Fiscal Year 2003
| • | Net sales for the fiscal year increased 19% to $797.9 million, from $671.4 million in 2002. |
| • | Comparable store sales increased 4% for the fiscal year, compared to a 16% decrease last year. |
| • | Net income was $23.0 million, compared to net income of $8.9 million last year. |
| • | Earnings per share were $0.85 compared to earnings per share of $0.33 in 2002. |
| • | The Company opened 53 new stores and closed five during the fiscal year. |
The Company also noted that February comparable store sales are up 22% month-to-date.
"Our strategy to consistently deliver fashion, value, and quality to our customers is well on target," said Ezra Dabah, Chairman and Chief Executive Officer of The Children's Place. "Our fiscal 2003 performance reveals the successful execution of that strategy. We are gaining market share, enhancing our brand message, and most importantly we are achieving strong customer acceptance of our merchandise offerings."
"In 2004, we will build upon our solid foundation by focusing on increasing store productivity as our number one priority. We have significant growth ahead of us with several key initiatives underway: increasing customer conversion; continued emphasis on merchandise quality; further elevating our brand image; maximizing our outlet business; and continued expansion into Canada, Puerto Rico, and the Western United States. We have a strong management team in place and we are confident in our long term success in the 0 to 10 age market."
The Children's Place will host a webcast of its fourth quarter conference call today at 10:00 a.m., Eastern Time. Interested parties are invited to listen to the call at the Company's web site, www.childrensplace.com. An archive of the webcast will be available on the site through Wednesday, March 3, 2004.
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 January 31, 2004, the Company operated 691 stores, including 649 stores in the United States and 42 stores in Canada. 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, Chief Financial Officer, 201/558-2409 Heather Anthony, Director, Investor Relations, 201/558-2865 |
(Tables Follow)
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
13 Weeks Ended: 52 Weeks Ended:
-------------- ---------------
January 31, February 1, January 31, February 1,
---------- ---------- ---------- ----------
2004 2003 2004 2003
---- ---- ---- -----
Net sales $ 234,569 $ 196,664 $ 797,938 $ 671,409
Cost of sales 133,952 125,229 485,671 422,721
------- ------- ------- -------
Gross profit 100,617 71,435 312,267 248,688
Selling, general and
administrative expenses 65,831 53,988 235,293 194,907
Asset impairment charges 448 3,170 448 3,170
Depreciation and amortization 10,471 9,735 40,028 35,746
------ ----- ------ ------
Operating income 23,867 4,542 36,498 14,865
Interest expense (income), net (127) (64) (255) (547)
------- ------- ------- -------
Income before income taxes 23,994 4,606 36,753 15,412
Provision for income taxes 8,819 2,317 13,796 6,478
----- ----- ------ -----
Net income $ 15,175 $ 2,289 $ 22,957 $ 8,934
=========== =========== =========== ============
Basic income per share $ 0.57 $ 0.09 $ 0.86 $ 0.34
Basic weighted average number
of shares outstanding 26,726 26,562 26,646 26,501
Diluted income per share $ 0.55 $ 0.09 $ 0.85 $ 0.33
Diluted weighted average number
of shares outstanding 27,510 26,718 27,099 26,978
THE CHILDREN'S PLACE RETAIL STORES, INC
CONDENSED BALANCE SHEETS
(In thousands)
January 31, 2004 February 1, 2003
---------------- ----------------
(Unaudited)
Current assets:
Cash and cash equivalents $ 74,772 $ 36,645
Accounts receivable 8,462 13,571
Inventories 96,128 75,417
Other current assets 20,070 19,570
------ ------
Total current assets 199,432 145,203
Property and equipment, net 144,610 155,000
Other assets, net 13,979 9,125
------ -----
Total assets $ 358,021 $ 309,328
========= =========
Current liabilities:
Revolving credit facility $ 0 $ 0
Accounts payable 35,173 30,805
Accrued expenses and
other current liabilities 49,984 35,124
------ ------
Total current liabilities 85,157 65,929
Other liabilities 17,956 14,391
------ ------
Total liabilities 103,113 80,320
Stockholders' equity 254,908 229,008
------- -------
Total liabilities and stockholders' equity $ 358,021 $309,328
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