Children's apparel and accessories retailer The Children's Place Retail Stores, Inc. (PLCE) Thursday reported an increase in profit for the third quarter that also came in line with analysts' estimates, benefited by increased net sales and lower costs.
For the quarter, the New Jersey-based company's net earnings were $37.78 million or $1.37 per share compared with $24.06 million or $0.81 per share in the prior-year period. Income from continuing operations rose to $38.17 million or $1.38 per share from $28.45 million or $0.96 per share last year.
On an adjusted basis, profit from continuing operations for the quarter was $38.0 million or $1.38 per share versus $24.9 million or $0.84 per share a year earlier.
On an average, 11 analysts polled by Thomson Reuters expected Children's Place to earn $1.38 per share for the quarter. Analysts' estimates typically exclude special items.
The company's loss from discontinued operations narrowed to $389 thousand or $0.01 per share from a loss of $4.39 million or $0.15 per share in the 2008-year period. Discontinued operations include operations of Disney Store North America business.
Net sales for the period increased 3% to $463.18 million from $450.62 million in the third quarter of fiscal 2008. Analysts expected Children's Place to generate revenues of $461.18 million for the quarter.
Comparable retail sales for the quarter, which include online sales, declined 2% following a 4% increase during the same period last year.
During the three-month period, selling, general and administrative costs fell to $118.58 million from $126.72 million, asset impairment charges were $307 thousand versus $954 thousand in the prior year. Depreciation and amortization expenses for the quarter rose to $18.17 million from $17.79 million year-ago period.
Net interest expenses declined to $520 thousand from $1.91 million in the third quarter last year. In the quarter, Children's Place had an income tax provision of $26.08 million versus $20.56 million in fiscal 2008.
During the third quarter of 2009, the company opened 13 stores and ended with 950 stores.
In the preceding second quarter, Children's Place has reported a net loss of $7.05 million compared to net profit of $11 thousand in the previous year. On a per share basis, net loss was $0.24, compared to a breakeven last year. Net sales for the second quarter dipped 7% to $315.67 million from $338.03 million in the second quarter of fiscal 2008.
For the year-to-date period, the company's net earnings surged to $54.24 million or $1.87 per share from $43.59 million or $1.48 per share in the previous year. Profit from continuing operations was $54.68 million or $1.88 per share versus $50.60 million or $1.72 per share in the same period last year. Adjusted profit from continuing operations rose to $47.3 million or $1.63 per share from $44.7 million or $1.52 per share in the year-to-date period a year ago.
Year-to-date net sales edged down to $1.18 billion from $1.19 billion in the comparable period previous year.
For the year-to-date period, Children's Place opened 34 stores and closed one store.
In Wednesday's regular trading session, PLCE closed trading on the Nasdaq at $34.87 per share on a volume of 1,100 shares. In the 52-week period, the shares have been trading in a range of $16.45 to $37.68.
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