Secaucus, New Jersey - May 11, 2000 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today reported sales and earnings for the first quarter ended April 29, 2000.

• Net sales for the 13-week quarter increased 40% to $130.1 million, compared with $92.6 million for the same period in 1999.
• Comparable store sales increased 5% for the quarter, on top of a 32% increase for the same period last year.
• Net earnings were $9.4 million, up 27% from $7.4 million a year earlier.
• Diluted earnings per share increased to $0.36 compared with $0.28 per share in the 1999 period.
• The Company opened 43 new stores during the first quarter.

"We are extremely pleased with the results of our first quarter," commented Ezra Dabah, Chairman and Chief Executive Officer. "The strong sales performance was driven by increases in the number and size of customer transactions. Increased marketing initiatives, together with enthusiastic customer response to our Spring merchandise across all departments of the Company, helped drive traffic into the stores."

Mr. Dabah noted, "Our expansion program is proceeding on plan with new stores performing above expectations, while delivering outstanding return on investment. The successful penetration into new markets demonstrates the broad appeal of our unique store concept and the immediate acceptance of our brand. These results illustrate the tremendous growth opportunity for the Company. During the quarter, we opened 43 new stores and we are on track to open a total of 100 new stores in fiscal 2000 and 120 new stores in fiscal 2001."

The Children's Place will host a webcast of its first quarter earnings conference call today at 10:00 a.m., Eastern Standard Time. Investors and the media are invited to listen to the call at the Company's Web site at www.childrensplace.com/Info/CompanyInfo.jsp

The Children's Place Retail Stores, Inc. is a leading specialty retailer of high quality, value-priced apparel and accessories for children, newborn to age twelve. The Company designs, contracts to manufacture and sells its products under the "The Children's Place" brand name. As of April 29, 2000, the Company operated 335 stores in 40 states and sells merchandise through its World Wide Web site located at www.childrensplace.com

This press release contains 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. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof.

THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)

13 Weeks Ended:

	April 29, 2000			May 1, 1999
Net Sales	$	130,082		$	92,621
Cost of sales	73,224			53,298
Gross profit	56,858				39,323
Selling, general, and administrative expenses	34,176				22,594
Pre-opening costs	2,683				1,201
Depreciation and amortization	4,471			3,296
Operating income	15,528				12,232
Interest expense, net	181				(150)
Other expense, net	3			5
Income before income taxes	15,344				12,377
Provision for income taxes	5,970			4,994
Net income	$	9,374		$	7,383
Diluted earnings per share		0.36			0.28
Diluted weighted average number of shares outstanding		26,352			26,620

 

THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED BALANCE SHEET
(In thousands)
(Unaudited)

	April 29, 2000			May 1, 1999
Current assets:
Cash and cash equivalents	$	6,560		$	26,015
Accounts receivable	12,217			4,910
Inventories	47,715			28,187
Other current assets	10,864			10,384
Total current assets	77,356			69,496
Property and equipment, net	101,451			55,452
Other assets, net	9,864			7,598
Total assets	$	188,671		$	132,546
Current liabilities:
Accounts payable		23,486			19,060
Accrued expenses and other current liabilities	29,937			21,349
Total current liabilities	53,423			40,409
Other liabilities	5,214			3,334
Total liabilities	58,637			43,743
Stockholders' equity	130,034			88,803
Total liabilities and stockholders' equity	$	188,671		$	132,546