The Children's Place Reports Record Third Quarter Results
Third Quarter
- Net sales for the quarter increased 9% to $181.4 million,
compared with $165.9 million for the same period in 2000.
- Excluding sales of the Company's Yaak folding scooter, third
quarter sales increased 16% over the prior year period.
- Comparable store sales decreased 9% for the quarter, versus a
5% increase for the same period last year.
- Excluding sales of the Yaak, third quarter comparable store
sales decreased 4% from the prior year period.
- Net earnings were $18.7 million, up 11% from $16.8 million a
year earlier.
- Diluted earnings per share increased to $0.70 compared with
$0.63 in the 2000 period.
- The Company opened 33 new stores and closed its World Trade
Center store during the third quarter.
Nine Months
- Net sales for the nine-month period increased 13% to $458.2
million from $403.8 million in the same period in 2000.
- Excluding sales of the Company's Yaak folding scooter,
year-to-date sales increased 17% over the prior year period.
- Comparable store sales decreased 8% for the period, versus a
6% increase for the same period last year.
- Excluding sales of the Yaak, comparable store sales for the
nine-months decreased 6% from the prior year period.
- Net earnings were $27.6 million compared with $27.7 million a
year earlier.
- Diluted earnings per share were $1.03 compared with $1.04 in
the 2000 period.
- The Company opened 114 new stores and closed its World Trade
Center store during the nine-month period.
"We are happy to report net earnings in the third quarter of $0.70 per share and
we are especially encouraged by the growth of our average transaction size
during the quarter, despite a retail-wide slowdown in store traffic," commented
Ezra Dabah, Chairman and Chief Executive Officer. "As we enter the important
holiday selling season, we are excited, yet cautious given the uncertain
economic climate. We currently anticipate a fourth quarter earnings increase of
25% over last year to approximately $0.70 per share."
"We have successfully opened 114 new stores this year and we look forward to opening another 120 stores next year. We have identified a very exciting opportunity to expand our Children's Place/babyPLACE combo store concept. Our 23 combo stores are larger, operate at a higher level of productivity and generate our highest four-wall contribution as a percentage of sales. We look forward to capitalizing upon the combo store concept to further increase our growth potential," concluded Mr. Dabah.
The Children's Place will host a webcast of its third 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 November 3, 2001, the Company operated 513 stores in 46 states. The Company also sells its merchandise through its virtual store located at 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: 39 Weeks Ended:
--------------- ---------------
November 3, October 28, November 3, October 28,
----------- ----------- ----------- -----------
2001 2000 2001 2000
---- ---- ---- ----
Net sales $ 181,433 $ 165,887 $ 458,212 $ 403,830
Cost of sales 97,363 93,367 265,167 234,110
----------- ----------- ----------- -----------
Gross profit 84,070 72,520 193,045 169,720
Selling, general and
administrative
expenses 44,497 38,175 122,414 103,115
Pre-opening costs 1,301 766 5,243 5,035
Depreciation and
amortization 7,374 5,525 19,716 15,050
----------- ----------- ----------- -----------
Operating income 30,898 28,054 45,672 46,520
Interest expense, net 162 483 197 941
Other expense, net 33 8 140 135
----------- ----------- ----------- -----------
Income before
income taxes 30,703 27,563 45,335 45,444
Provision for
income taxes 11,984 10,718 17,690 17,709
----------- ----------- ----------- -----------
Net income $ 18,719 $ 16,845 $ 27,645 $ 27,735
=========== =========== =========== ===========
Diluted earnings
per share $ 0.70 $ 0.63 $ 1.03 $ 1.04
Diluted weighted
average number of
shares outstanding 26,876 26,921 26,907 26,646
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
November 3, October 28,
2001 2000
---------- ----------
Current assets:
Cash and cash equivalents $ 8,653 $ 7,509
Accounts receivable 19,089 13,647
Inventories 79,304 77,784
Other current assets 15,261 13,260
---------- ----------
Total current assets 122,307 112,200
Property and equipment, net 136,456 113,648
Other assets, net 15,637 10,647
---------- ----------
Total assets $ 274,400 $ 236,495
========== ==========
Current liabilities:
Revolving credit facility $ 7,365 $ 23,851
Accounts payable 26,457 26,961
Accrued expenses and
other current liabilities 35,882 30,087
---------- ----------
Total current liabilities 69,704 80,899
Other liabilities 8,557 6,016
---------- ----------
Total liabilities 78,261 86,915
Stockholders' equity 196,139 149,580
---------- ----------
Total liabilities and stockholders' equity $ 274,400 $ 236,495
========== ==========
CONTACT: The Children's Place
Seth Udasin, 201/558-2409
Chief Financial Officer
or
Morgen-Walke Associates, Inc.
Suzanne Rosenberg/David Waldman
Media: Claudine Cornelis/Laura Novak
212/850-5600