Thursday, Children's Place Retail Stores, Inc. (PLCE), a specialty retailer of children's merchandise, reported a profit in the second quarter compared to a loss in the same period last year. The company said that the results are based on the Children's Place business only, and Disney Store North America business has been classified as a discontinued operation.
The Secaucus, New Jersey-based company posted second-quarter net income of $11 thousand or breakeven per share, compared to net loss of $28.09 million or $0.97 per share in the prior-year period.
Income from continuing operations for the quarter was $2.74 million or $0.09 per share, compared to loss from continuing operations of $19.81 million or $0.68 per share in the comparable period a year ago.
Adjusted loss from continuing operations, excluding the unusual or one-time items, was $0.9 million or $0.03 per share, compared to adjusted loss from continuing operations of $17.8 million or $0.61 per share in the year-earlier quarter.
On average, nine analysts polled by First Call/Thomson Financial expected the company to report a loss of $0.43 per share.
Quarterly net sales increased 16% to $338.03 million from $290.5 million last year, but came below analysts' revenue estimate of $339.03 million. Comparable store sales increased 9% in the quarter compared to a 1% decrease last year.
During the second quarter, the company closed on an $85 million five-year term loan to ensure adequate liquidity would be available in the event that the difficult economic conditions persist and adversely impact the business. The company also signed a new credit agreement for a $200 million asset-based revolving credit facility which replaced the revolving credit facility previously in effect.
For the first six months of the fiscal, the company posted a net income of $19.53 million or $0.66 per share, compared to a loss of $13.38 million or $0.46 per share in the first half of previous fiscal.
Income from continuing operations for the six-month period was $22.16 million or $0.75 per share, compared to loss from continuing operations of $0.74 million or $0.03 per share in the year-earlier period.
Adjusted income from continuing operations was $19.8 million or $0.67 per share, compared to adjusted income from continuing operations of $2.5 million or $0.09 per share in the same period previous year.
Half-yearly net sales increased 14% to $738.24 million from $646.49 million last year.
Commenting on the outlook, Chuck Crovitz, interim chief executive officer said, "We expect that consumer purchasing power will continue to be pressured by ongoing weakness in the economy and we are maintaining our focus on offering great color, great outfitting, and great fashion at a tremendous value."
PLCE is currently trading at $41.96,up $5.20 or 14.15% on Nasdaq.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.