The Children's Place Reports 17% EPS Increase for the First Quarter
-- Company Reiterates 25% EPS Growth for 2002 --
-- Company Reports Record Operating Margin of 14% --
The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today reported record
sales and earnings for the first quarter, ended May 4, 2002.
-- Net sales for the quarter increased 8% to $173.0 million.
-- Comparable store sales decreased 11% in the quarter,
compared to a 2% decrease for the same period last year.
-- Net income was $15.2 million, a 19% increase from $12.8
million in the year-ago period.
-- Diluted earnings per share increased 17% to $0.56 compared
to $0.48 per share in the 2001 period.
-- The Company opened 34 new stores during the first quarter.
"We are pleased with the results of the first quarter 2002, as we posted a
record operating margin in a difficult retail environment," commented Ezra
Dabah, Chairman and Chief Executive Officer. "Looking ahead, due to our sales
trends, we are reducing our revenue projections for the full year. However,
given our anticipated improvement in gross margin, along with tighter management
of our operating expenses, we remain comfortable with our previously stated 25%
earnings per share increase for 2002 versus last year."
The Children's Place will host a webcast of its first quarter earnings conference call today at 10:00 a.m., Eastern Time. Investors and the media 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 same site.
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 May 4, 2002, the Company operated 554 stores in 47 states. 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.
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
13 Weeks Ended:
---------------
May 4, 2002 May 5, 2001
----------- -----------
Net sales $ 173,047 $ 160,461
Cost of sales 93,919 92,299
------------------ ------------------
Gross profit 79,128 68,162
Selling, general, and
administrative expenses 46,373 41,252
Depreciation and amortization 8,270 5,869
------------------ ------------------
Operating income 24,485 21,041
Interest (income)
expense, net (246) 31
------------------- --------------------
Income before income taxes 24,731 21,010
Provision for income taxes 9,523 8,192
------------------ ------------------
Net income $ 15,208 $ 12,818
================== ==================
Diluted earnings per share $ 0.56 $ 0.48
Diluted weighted average
number of shares
outstanding 27,348 26,844
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED BALANCE SHEET
(In thousands)
(Unaudited)
May 4, 2002 May 5, 2001
----------- -----------
Current assets:
Cash and cash equivalents $ 66,204 $ 24,193
Accounts receivable 14,439 13,165
Inventories 49,772 48,404
Other current assets 18,295 14,529
------------------ ------------------
Total current assets 148,710 100,291
Property and equipment, net 149,889 137,749
Other assets, net 6,145 5,165
------------------ ------------------
Total assets $ 304,744 $ 243,205
================== ==================
Current liabilities:
Accounts payable $ 22,072 $ 19,874
Accrued expenses and other
current liabilities 37,844 35,612
------------------ ------------------
Total current liabilities 59,916 55,486
Other liabilities 11,512 7,459
------------------ ------------------
Total liabilities 71,428 62,945
------ ------
Stockholders' equity 233,316 180,260
------------------ ------------------
Total liabilities and
stockholders' equity $ 304,744 $ 243,205
================== ==================
CONTACT: The Children's Place Retail Stores, Inc.
Seth Udasin, 201/558-2409
or
Morgen-Walke Associates, Inc.
Suzanne Rosenberg/Ankit Goyal
Media: Laura Novak/Stephanie Sampiere
212/850-5600
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