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): October 9,
2007
THE
CHILDREN’S PLACE RETAIL STORES, INC.
(Exact
name of registrant as specified in charter)
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Delaware
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0-23071
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31-1241495
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(State
or Other Jurisdiction
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(Commission
File
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(IRS
Employer
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of
Incorporation)
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Number)
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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:
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
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Item
8.01 Other Events
On
October 9, 2007, The Children’s Place Retail Stores, Inc., (the “Company”)
issued a press release containing its preliminary sales results for the
five-week period ended October 6, 2007, and lowered guidance for the
third
and fourth quarters and the full year of fiscal 2007.
A
copy of
the Company’s press release is included as Exhibit 99.1 hereto.
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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(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
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Press
Release dated October 9, 2007.
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[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.
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THE
CHILDREN’S PLACE RETAIL STORES, INC.
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By
/s/ Susan
Riley
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Name:
Susan Riley
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Title:
Executive Vice President, Finance and
Administration
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Dated:
October 9, 2007
THE
CHILDREN’S PLACE RETAIL STORES, INC. COMMENTS ON SEPTEMBER
SALES
-
Company Lowers Guidance-
-
Comments on Near Term Strategic Actions -
Secaucus,
New Jersey - October 9, 2007 - The Children’s Place Retail Stores, Inc. (NASDAQ:
PLCE)
today
announced total consolidated sales of approximately $217.8 million for the
five-week period ended October 6, 2007, an approximate 4% increase compared
to
sales of $210.3 million for the five-week period ended September 30, 2006.
Consolidated comparable store sales decreased approximately 3% for the five
weeks ended October 6, 2007, compared to a 16% increase last year. Consolidated
September comparable store sales are comprised of an approximate 2% decrease
at
The Children’s Place brand, and an approximate 6% decrease at Disney Store.
Final September sales results will be reported on Thursday, October 11, 2007,
before the market opens.
The
Company commented that in light of September sales and margin results and its
revised outlook for the month of October, it now anticipates that earnings
per
share for the third quarter of fiscal 2007 will come in at least 60% below
the
low end of its previous guidance of $0.94 to $1.02 given on August 23, 2007.
Included in this new outlook is an estimated charge of approximately $0.07
per
share related to severance payments to be made to the Company’s former chief
executive officer pursuant to the terms of his employment agreement with the
Company.
Assuming
that current sales and margin trends continue into the fourth quarter, the
Company’s earnings per share will be significantly below the low end of its
previous fourth quarter and full year earnings per share guidance of $1.79
to
$1.86 and $2.25 to $2.40, respectively. Given the recent change of the Company’s
CEO and challenging macro-economic environment, at this time the Company does
not plan to provide further guidance for the fourth quarter or the full year.
The
Company also announced that, in light of the Company’s lowered expectations
regarding fiscal 2007, it will be reversing amounts which had been accrued
in
fiscal 2006 and the first half of fiscal 2007 for its long-term management
equity compensation program. This anticipated reversal amounts to a non-cash
gain of approximately $0.25 per share which the Company now expects to be
retroactive to the first half of fiscal 2007.
“Clearly
we are disappointed with current business trends and our outlook for the second
half of the year,” said Chuck Crovitz, Interim Chief Executive Officer of The
Children’s Place Retail Stores, Inc. “Our results primarily reflect inventory
levels at both brands that are higher than we would like given current sales
trends, particularly at The Children’s Place brand. As a result, we had to take
a substantial amount of unplanned markdowns during September, resulting in
merchandise margins well below our plans. At this time, we believe these trends
are likely to continue through the remainder of the year.”
The
Company further commented that it believes certain external factors, such as
the
unseasonably warm weather particularly in the last 10 days of the month, put
substantial pressure on the business.
Mr.
Crovitz and the Board are in the process of assessing the business and are
re-evaluating its inventory strategy. Steps are being taken to reduce inventory
levels where possible. Given the Company’s merchandise buying lead times, it
will likely take several quarters to make adjustments to the extent they are
necessary.
-
more
-
PLCE:
Company Comments on September Sales
Page
2
In
addition:
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·
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Mr.
Crovitz is actively engaged with other members of management in overseeing
the updating and completion of the Company’s delinquent SEC filings.
Becoming current in its financial reporting remains a top priority
at the
Company.
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·
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The
Company’s Board of Directors has established a Search Committee comprised
of Sally Frame Kasaks and Bob Fisch to oversee the search for a permanent
chief executive officer.
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·
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The
Committee has chosen search firm Herbert Mines Associates, which
specializes in the retail and consumer products sectors, to conduct
the
search.
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As
stated
above, the Company will provide further details regarding its September sales
results on Thursday, October 11, 2007, before the market opens and will provide
a pre-recorded monthly sales call, which will be available beginning at 7:30
a.m. Eastern Time through Thursday, October 18, 2007. To access the call, please
dial (402) 220-2662 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
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 October 6, 2007, the
Company owned and operated 899 The Children’s Place stores and 328 Disney Stores
in North America and its online stores, www.childrensplace.com and
www.disneystore.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 granting practices and
the
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 pending NASDAQ
proceedings regarding the Company's continued listing, 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.
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.
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Investors:
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Heather
Anthony, Sr. Director, Investor Relations, (201)
558-2865
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Susan
LaBar, Manager, Investor Relations, (201) 453-6955
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Media:
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Melissa
Merrill/Cara O’Brien/Leigh Parrish, FD,
212-850-5600
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###