Secaucus, New Jersey - May 17, 2001 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today reported record sales and earnings for the first quarter, ended May 5, 2001.

• Net sales for the quarter increased 23% to $160.5 million, compared with $130.2 million for the same period in 2000.
• Comparable store sales decreased 2% for the quarter, compared to a 5% increase for the same period last year.
• Net earnings were $12.8 million, up 37% from $9.4 million a year earlier.
• Diluted earnings per share increased 33% to $0.48 compared with $0.36 per share in the 2000 period.
• The Company opened 37 new stores during the first quarter.

"I am pleased with our first quarter, which marked our thirteenth consecutive increase in revenues and earnings," commented Ezra Dabah, Chairman and Chief Executive Officer. "Our strong 33% earnings growth was achieved despite a 2% decline in comparable store sales."

"Our aggressive growth strategy is ahead of schedule with 37 of the planned 120 new stores in 2001 opened during the first quarter," continued Mr. Dabah. "Our exceptional formula, coupled with widespread customer acceptance, further reinforces our confidence in our expansion plans as we grow The Children's Place concept to more than 1,000 stores nationwide."

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. Currently, the Company operates 449 stores in 44 states and sells 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 5, 2001			April 29, 2000
Net Sales	$	160,461		$	130,181
Cost of sales	92,299			73,432
Gross profit	68,162				56,749
Selling, general, and administrative expenses	38,964				34,067
Pre-opening costs	2,288				2,683
Depreciation and amortization	5,869			4,471
Operating income	21,041				15,528
Interest expense, net	31				181
Other expense, net	0			3
Income before income taxes	21,010				15,344
Provision for income taxes	8,192			5,970
Net income	$	12,818		$	9,374
Diluted earnings per share	$	0.48		$	0.36
Diluted weighted average number of shares outstanding		26,844			26,352

 

THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED BALANCE SHEET
(In thousands)
(Unaudited)

	May 5, 2001			April 29, 2000
Current assets:
Cash and cash equivalents	$	24,193		$	6,560
Accounts receivable	13,165			12,217
Inventories	48,404			47,715
Other current assets	14,529			10,864
Total current assets	100,291			77,356
Property and equipment, net	130,317			101,451
Other assets, net	12,597			9,864
Total assets	$	243,205		$	188,671
Current liabilities:
Accounts Payable	$	19,918		$	23,486
Accrued expenses and other current liabilities	35,568			29,937
Total current liabilities	55,486			53,423
Other liabilities	7,459			5,214
Total liabilities	62,945			58,637
Stockholders' equity	180,260			130,034
Total liabilities and stockholders' equity	$	243,205		$	188,671