The Children's Place Retail Stores, Inc. Reports December Sales
SECAUCUS, N.J.--(BUSINESS WIRE)--Jan. 5, 2006-- The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today announced that for the five-week period ended December 31, 2005, comparable store sales for The Children's Place stores increased 11% on top of a 21% increase for the same period last year. Total consolidated sales for the Company increased 8% to $286.7 million, compared to sales of $264.7 million reported for December 2004. December 2005 sales included $178.3 million from The Children's Place, a 19% increase compared to last year's sales of $150.2 million, and $108.4 million from Disney Store, a 5% decrease compared to last year's sales of $114.5 million. During December 2005, the Company opened two Children's Place stores.
For the nine-week holiday selling period, The Children's Place brand achieved an 11% increase in comparable store sales on top of a 16% increase for the same period last year.
Total sales for the forty-eight weeks ended December 31, 2005 increased 47% to $1.582 billion, from $1.079 billion reported in the year ago period. Sales for the forty-eight weeks were comprised of $1.109 billion from The Children's Place, an 18% increase over last year, and $473.1 million in sales from the Company's Disney Store business. Comparable store sales for The Children's Place increased 9%, on top of a 15% increase in the same period last year. Through December 31, 2005, the Company has opened 55 Children's Place stores and closed three. In addition, the Company has opened 18 Disney Stores and closed one.
"December sales were exceptionally strong at The Children's Place, which we attribute to increased consumer awareness of our unique fashion, quality and value equation and the clarity of our merchandise offering," said Ezra Dabah, Chairman and Chief Executive Officer of The Children's Place Retail Stores, Inc. "This combined with an effective marketing strategy, a focused store operations plan and strategic inventory flows resulted in substantial year-over-year sales and earnings growth."
Mr. Dabah continued, "At the Disney Store, our Holiday sales were significantly below our expectations due to a substantial decrease in average unit retail and the lack of a compelling merchandise presentation. Going forward, to drive transactions and excitement, we will create strong, impactful merchandise presentations with clear visual and marketing messages. In addition, we will modify our merchandise strategy to increase average unit retail and to appeal to a broader consumer base. We continue to believe strongly in the future growth and success of the Disney Store business, and we look forward to 2006 as we evolve our merchandise strategies and leverage the exciting and extensive new line up of Disney content."
The Company stated that, given the strength of The Children's Place business, it continues to anticipate consolidated fourth quarter earnings per share of $1.61 to $1.66. Approximately $1.21 per share will be generated from The Children's Place brand including shared services, an approximate 73% increase over last year, and approximately $0.40 per share will be generated from the Disney Store brand, an approximate 60% increase over last year. The Company acquired the Disney Store business effective November 21, 2004.
The Company anticipates fiscal 2006 consolidated earnings per share before option expensing to be $2.90 to $3.00, which includes an approximate $5 million expense, or $0.11 per share, related to the implementation of FSP FAS No. 13-1 which requires the expensing of rent during construction.
In conjunction with The Children's Place December sales release, you are invited to listen to the Company's pre-recorded monthly sales call, which will be available beginning at 7:30 a.m. Eastern Time today through Thursday, January 12, 2005. To access the call, please dial (800) 642-1687 followed by the Conference ID #3851994, 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 December 31, 2005, the Company owned and operated 802 The Children's Place stores and 323 Disney Stores in North America and its online store, 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.
CONTACT: The Children's Place
Heather Anthony, 201-558-2865
SOURCE: The Children's Place Retail Stores, Inc.