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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported) March 2, 2006
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THE CHILDREN'S PLACE RETAIL STORES, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 0-23071 31-1241495
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(State or other jurisdiction (Commission (IRS Employer ID
of incorporation) File Number) Number)
915 Secaucus Road, Secaucus, New Jersey 07094
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(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code: (201) 558-2400
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Not Applicable
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On March 2, 2006, The Children's Place Retail Stores, Inc. (the
"Company") issued a press release announcing certain financial information for
the month ended February 25, 2006 and the fourth quarter and fiscal year ended
January 28, 2006, as well as the Company's updated outlook for fiscal 2006. A
copy of the Company's press release is included as Exhibit 99.1 hereto.
Item 9.01 Financial Statements and Exhibits
(a) Financial Statements of Business Acquired: Not applicable
(b) Pro Forma Financial Information: Not applicable
(c) Exhibits:
99.1 Press Release dated March 2, 2006.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
THE CHILDREN'S PLACE RETAIL
STORES, INC.
By: /s/ Hiten Patel
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Name: Hiten Patel
Title: Senior Vice President and Chief
Financial Officer
Dated: March 2, 2006
INDEX TO EXHIBITS
Current Report on Form 8-K
dated March 2, 2006
The Children's Place Retail Stores, Inc.
99.1 Press Release dated March 2, 2006.
Exhibit 99.1
The Children's Place Retail Stores, Inc. Reports February Comparable
Store Sales; Company Updates Fourth Quarter 2005 & Fiscal 2006
Earnings Per Share Guidance
SECAUCUS, N.J.--(BUSINESS WIRE)--March 2, 2006--The Children's Place Retail
Stores, Inc. (Nasdaq: PLCE) today announced sales results for the four-week
period ended February 25, 2006.
-- Total consolidated sales increased 7% to $113.8 million, compared to
sales of $106.8 million reported for February 2005. February sales
included $84.7 million from The Children's Place, a 4% increase compared
to last year's sales of $81.5 million, and $29.1 million from Disney
Store, a 15% increase compared to last year's sales of $25.3 million.
-- Consolidated comparable store sales increased 1% on top of a 24%
increase for the same period last year.
-- Comparable store sales for The Children's Place brand decreased 2%
compared to last year's 24% increase, reflecting the later Easter.
-- Comparable stores sales for the Disney Store brand increased 13% in
February. February marks the first month that 259 Disney Stores entered
the Company's comparable store base.
-- During February 2006, the Company closed one Disney Store.
"As anticipated, the later Easter this year negatively impacted our February
sales results at The Children's Place, as our dressy assortment which is a high
price point and high traffic driver, was set for only a partial week this year
compared to virtually the entire month last year. At The Children's Place we
experienced strong customer conversion and unit per transaction increases and
early response to our dressy assortment has been favorable," said Ezra Dabah,
Chairman and Chief Executive Officer of The Children's Place Retail Stores, Inc.
"Disney Store's double digit comparable store sales increase is a significant
improvement from the recent trend. Our performance at Disney Store primarily
reflects our strategic inventory investment and positive guest response to our
softlines merchandise which drove strong unit per transaction growth."
Fourth Quarter 2005 Guidance
The Company now anticipates consolidated fourth quarter 2005 GAAP earnings
per share of approximately $1.57 which includes:
-- a $2.1 million, or $0.07 per share, charge related to the previously
announced accelerated vesting of certain stock options; and
-- an approximate $0.3 million, or $0.01 per share, charge reflecting the
Company's plan to retrospectively apply FSP FAS No. 13-1, the expensing
of rent during construction, to prior periods. By retrospectively
applying FAS FSP No. 13-1, the Company's historical and future financial
results will reflect this new accounting principle.
Excluding the impact of accelerated stock options vesting and FSP FAS No.
13-1 discussed above, fourth quarter earnings per share are anticipated to be
approximately $1.65, at the high end of previous guidance. Approximately $1.23
per share is expected to be generated from The Children's Place brand including
shared services and approximately $0.42 per share is expected to be generated
from the Disney Store brand.
Fiscal 2005 Guidance
For the full year fiscal 2005, the impact of FSP FAS No. 13-1 will be
approximately $2.4 million, or $0.05 per share. The Company will provide the
prior period impact of this new accounting principle in its future SEC filings.
Fiscal 2006 Outlook
The Company also stated today that it plans to reduce the number of Disney
Store remodels to approximately 25 in fiscal 2006, as it continues to refine its
new store prototype. As a result of the lower number of remodels and reduced
expenses, the Company now anticipates fiscal 2006 GAAP earnings per share of
$2.67 to $2.77 including equity compensation expense or $3.00 to $3.10 excluding
equity compensation expense, a $0.10 increase to previous guidance.
In conjunction with The Children's Place February 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, March
9, 2006. To access the call, please dial (800) 642-1687 followed by the
Conference ID #5964995, or you may listen through the Investor Relations section
of the Company's website, www.childrensplace.com.
The Children's Place plans to report full fourth quarter and fiscal 2005
results on Thursday, March 9, 2006. The Company will host a conference call on
that date to be broadcast live via webcast at 9:00 a.m. Eastern Time. Interested
parties can access the webcast via the Company's website,
www.childrensplace.com. An archive of the webcast can be accessed one hour after
the live call has taken place and will be available through Thursday, March 16,
2006.
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 February 25, 2006, the
Company owned and operated 802 The Children's Place stores and 316 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