UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 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): May 3, 2007
THE
CHILDREN’S PLACE RETAIL STORES, INC.
(Exact
name of registrant as specified in charter)
|
Delaware
|
0-23071
|
31-1241495
|
|
(State
or Other Jurisdiction
|
(Commission
File
|
(IRS
Employer
|
|
of
Incorporation)
|
Number)
|
Identification
No.)
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915
Secaucus Road, Secaucus, New Jersey, 07094
(Address
of Principal Executive Offices) (Zip Code)
(201)
558-2400
(Registrant’s
telephone number, including area code)
Not
applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
| o |
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
| o |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
| o |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
|
| o |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
|
Item
2.02 Results of Operations and Financial Condition
On
May
10, 2007, we issued a press release announcing
certain financial information for
the
fiscal month and quarter ended May
5,
2007 and updated guidance for the first quarter and for fiscal year 2007.
A
copy of
our press release relating to the foregoing is attached hereto as Exhibit
99.1
and is
incorporated in this Item 2.02 by reference.
The
information contained under this Item 2.02 shall not be deemed “filed” for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), or incorporated by reference in any filing under the Securities
Act of 1933, as amended, or the Exchange Act, except as shall be expressly
set
forth by specific reference in such a filing.
Item
8.01 Other Events
In
our
May 10, 2007 press release we announced
that due to our previously announced restatement of financial results, we will
postpone our annual stockholder meeting, originally scheduled for June 21,
2007.
We will announce a new date for our annual stockholder meeting after we file
our
annual report on Form 10-K.
We
are
currently involved in a lawsuit filed in the California Superior Court by a
former employee of the Company alleging violations of the California Labor
Code
and California Business and Professions Code. On May 3, 2007, the California
Court of Appeal issued an order in this case directing the lower court to
certify a class of former and current non-exempt managers in California. In
addition, the California Supreme Court rendered a decision recently in another
case, in which we are not involved as a defendant, that may have an impact
on
the statute of limitations for one of the claims in our case. We have denied
any
and all liability in this case and are assessing this recent
decision.
Item
9.01 Financial Statements and Exhibits
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(a)
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Financial
Statements of Business Acquired: Not applicable
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||
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(b)
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Pro
Forma Financial Information: Not applicable
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(c)
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Exhibits:
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| 99.1 Press Release dated May 10, 2007. |
[SIGNATURE
BLOCK FOLLOWS]
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, 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/ Susan
Riley
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|
| Name: | Susan Riley | |
| Title: |
Executive Vice President, Finance
and
Administration
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|
Dated:
May 10, 2007
FOR
IMMEDIATE
THE
CHILDREN’S PLACE RETAIL STORES, INC. REPORTS CONSOLIDATED
APRIL
SALES UP 1%; CONSOLIDATED COMPARABLE STORE SALES DOWN 2%
~
Company Updates First Quarter, Full Year Guidance ~
~
Company Postpones Annual Shareholder Meeting ~
Secaucus,
New Jersey - May 10, 2007 - The Children’s Place Retail Stores, Inc. (Nasdaq:
PLCE)
today
announced sales of $140.3 million for the four-week period ended May 5,
2007, a
1% increase compared to sales of $139.2 million for the four-week period
ended
April 29, 2006. Consolidated comparable store sales decreased 2% compared
to
last year’s 22% increase. During April 2007, the Company opened four Children’s
Place stores and closed one.
Total
Sales (millions):
|
April
2007
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April
2006
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%
Increase
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First
Quarter
2007
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First
Quarter 2006
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%
Increase
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|
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The
Children’s Place brand
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$
104.2
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$
104.2
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0%
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$
356.0
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$
322.0
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11%
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Disney
Store
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$
36.1
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$
35.0
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3%
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$
122.9
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$
104.5
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18%
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Total
Company
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$
140.3
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$
139.2
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1%
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$
478.9
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$
426.5
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12%
|
Comparable
Store Sales Increase/(Decrease):
|
April
2007
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April
2006
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First
Quarter 2007
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First
Quarter 2006
|
|
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The
Children’s Place brand
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(1)%
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20%
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2%
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9%
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Disney
Store
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(4)%
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30%
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8%
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16%
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Total
Company
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(2)%
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22%
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4%
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10%
|
As
previously announced, due to the extra week in fiscal 2006, the Company’s fiscal
2007 comparable store sales have shifted by one week as compared to the
corresponding period of fiscal 2006. Any references made today and going
forward
regarding last year’s comparable store sales results will be on the “adjusted”
basis. For a breakdown of the Company’s fiscal 2006 comparable store sales on an
“as reported” and “as adjusted” basis, please refer to the Company’s March 8,
2007, press release.
At
this
time, the Company anticipates reporting preliminary earnings per share
of $0.40
to $0.42 for the first quarter of fiscal 2007, below previous guidance.
While
consolidated comparable stores sales results came in at the low end of
previous
guidance, sales were lower than planned and markdowns were higher at both
brands
than previously anticipated, primarily due to continued poor Spring performance
at The Children’s Place, lack of newness at Disney Store and the unfavorable
weather experienced in April. This earnings per share range also includes
approximately $2.5 million, pre-tax, in costs paid or accrued in association
with the stock option investigation and related expenses.
-
more
-
PLCE:
April 2007 Sales Release
Page
2
For
fiscal 2007, at this time, the Company anticipates earnings per share of
$3.45
to $3.55, also below previous guidance. While the Company remains cautiously
optimistic regarding the second half of the year, April results and current
business trends have made it more difficult to achieve the Company’s previous
earnings expectation. This updated guidance reflects the $2.5 million, pre-tax,
in stock option investigation and related expenses incurred in the first
quarter
but does not contemplate additional residual expenses the Company may incur
as a
result of the conclusion of the investigation.
Separately,
the Company stated that, due to its previously announced restatement of
financial results, the Company will postpone its annual shareholder meeting,
originally scheduled for June 21, 2007. The Company will announce a new date
for
its annual shareholder meeting at a later date.
In
conjunction with today’s April 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, May 17, 2007. 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 plans to report preliminary first quarter results on Tuesday,
May 22, 2007. The Company will host a conference call on that date to be
broadcast live at 10:00 a.m. Eastern Time. Interested parties are invited
to
listen to the call by dialing (785) 424-1053 and providing the Conference
ID,
PLCE. The call will also be webcast live and can be accessed via the Company’s
web site, www.childrensplace.com.
A
replay of the call will be available approximately one hour after the conclusion
of the call, until midnight on May 29, 2007. To access the replay, please
dial
(402) 220-1182, or you may listen to the audio archive on the Company’s website,
www.childrensplace.com.
The
Children’s Place Retail Stores, Inc. is a leading specialty retailer of
children’s merchandise. The Company designs, contracts to manufacture and sells
high-quality, value-priced merchandise under the proprietary “The Children’s
Place” and licensed “Disney Store” brand names. As of May 5, 2007, the Company
owned and operated 868 The Children’s Place stores and 328 Disney Stores in
North America and The Children’s Place online store 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, as well as the risks and
uncertainties relating to the Company's stock option grants and procedures
and
the recently completed investigation by the special committee of the Company’s
Board of Directors, the previously announced pending restatement of the
Company’s historical financial statements, the delays in filing the Company’s
periodic reports with the Securities and Exchange Commission, the outcome
of the
informal investigation of the Company being conducted by the Securities and
Exchange Commission, potential other governmental proceedings, the shareholder
litigation commenced against the Company and certain of its officers and
directors,
and
the potential impact of each
of these matters on the Company, as well as matters relating to the Company’s
discussions with The Walt Disney Company. 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. The Company undertakes 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 Company or any other person
that
the events or circumstances described in such statement are
material.
| CONTACT: |
The
Children’s Place Retail Stores, Inc.
Heather
Anthony, Senior Director, Investor Relations, (201) 558-2865
Susan
LaBar, Manager, Investor Relations, (201)
453-6955
|
###