The Children's Place Retail Stores, Inc. Reports March Sales
SECAUCUS, N.J., Apr 07, 2005 (BUSINESS WIRE) -- The Children's Place Retail Stores, Inc. (Nasdaq: PLCE)The Children's Place Retail Stores, Inc. (Nasdaq: PLCE), today announced total consolidated sales of $154.7 million for the five-week period ended April 2, 2005, a 59% increase over sales of $97.1 million for the same period last year. March sales were comprised of $116.9 million in sales from The Children's Place, and $37.8 million in sales from the Company's Disney Store business. Comparable store sales for The Children's Place stores increased 10%, on top of a 17% increase in March 2004. During the month, the Company opened three The Children's Place stores and closed one. In addition, the Company opened one Disney Store and closed one.
Total consolidated sales for the nine weeks ended April 2, 2005, were $261.5 million, a 66% increase from sales of $157.1 million for the same period last year. Sales for the nine-week period included $198.4 million from The Children's Place and $63.1 million from the Company's Disney Store business. Comparable store sales for The Children's Place increased 15% for the nine-week period on top of a 20% increase in the same period last year.
"We are pleased with our March sales results, which exceeded our plan, reflect the underlying strength of our brand and could have been even stronger were it not for the unseasonable weather in key markets," said Ezra Dabah, Chairman and Chief Executive Officer of The Children's Place Retail Stores, Inc. "Our Easter selling season was a success and we look forward to introducing our summer one line next week. At Disney Store, we are excited to apply our sourcing expertise to this magical brand, and are pleased with the positive guest response to items now being offered at value prices. We are putting our strategies in motion and are confident that our guests will respond enthusiastically to our initiatives."
Given quarter-to-date sales results, the Company continues to anticipate fiscal 2005 adjusted earnings per share to be in the range of $2.10 to $2.20. This anticipated EPS range is before the effects of the remaining $1.2 million non-cash charge related to acquired Disney Store inventory, which will be reflected in the Company's first quarter financial results, and the effect of new accounting rules requiring the expensing of stock options. The Company plans to initiate the expensing of stock options prospectively beginning with the third quarter of fiscal 2005, in accordance with the requirements of FASB Statement No. 123R.
Separately, the Company continues to re-evaluate its lease-related accounting practices in light of a recent SEC clarification. While no decisions have been made, management continues to believe that a restatement of the Company's previously issued financial statements is likely. However, any potential correction would not have a material impact on net income for the year ended January 29, 2005, nor will any potential restatement have any impact on net sales, comparable store sales or overall cash flows for any period. Further, any correction to the Company's lease accounting practices would not materially impact its anticipated results of operations for the year ending January 28, 2006.
SOURCE: The Children's Place
The Children's Place
Seth Udasin, 201-558-2409
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Investor Relations:
Heather Anthony, 201-558-2865