The Children's Place Posts 25% EPS Increase to $0.70 in Fourth Quarter Fiscal 2001; Company Projects EPS Growth of 25% for Fiscal 2002
Fourth Quarter 2001
- Net sales increased to $198.7 million, a 15% increase over the
restated thirteen-week period in fiscal 2000.
- Comparable store sales decreased 6% versus flat same-store
sales for the restated prior year period.
- Excluding sales of the Yaak folding scooter, comparable store
sales decreased 3%.
- Net income increased 27% to $18.9 million from $15.0 million
last year.
- Diluted earnings per share increased 25% to $0.70 from $0.56
in the fiscal 2000 period.
- The Company opened 7 new stores during the quarter.
Fiscal Year 2001
- Net sales increased to $657 million, a 13% increase over the
restated fifty-two week period in fiscal 2000.
- Comparable store sales decreased 8% versus a 4% increase in
the prior year.
- Excluding sales of the Yaak folding scooter, comparable store
sales for the year decreased 5%.
- Net income increased 9% to $46.6 million from $42.7 million
last year.
- Diluted earnings per share increased 8% to $1.73 from $1.60 in
fiscal 2000.
- The Company opened 121 new stores and closed one store during
the fiscal year.
"We are delighted to report record sales and earnings for the fourth quarter,"
commented Ezra Dabah, Chairman and Chief Executive Officer. "We produced
positive bottom line growth despite experiencing negative comparable store
sales. This performance was due primarily to our improved gross margin as a
result of lower product costs."
"Our inventory levels over the past twelve months were planned very conservatively," Mr. Dabah noted. "We believe that at certain times during the year our top-line and comparable store sales could have been stronger if our inventory ownership had been at higher levels. We have taken steps to adjust our inventory plans and as a result, we expect same-store sales to start trending positive in the second quarter of fiscal 2002."
"With our coordinated, well-designed, fashionable merchandise at appealing prices, we look forward with confidence to the year 2002. Including our expansion into Canada, we expect to open 130 new stores in fiscal 2002. Our efforts are well underway to manage our growth and we anticipate earnings to increase approximately 25% this year," concluded Mr. Dabah.
The Children's Place will host a webcast of its fourth quarter earnings conference call today at 10:00 a.m., Eastern Time. Investors and the media are invited to listen to the call at the Company's Web site: www.childrensplace.com. An archive of the webcast will be available on the same site.
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 February 2, 2002, the Company operated 520 stores in 46 states. The Company also sells its merchandise through its virtual store located at 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.
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share amounts)
13 Weeks 14 Weeks 52 Weeks 53 Weeks
Ended: Ended: Ended: Ended:
----------- ----------- ----------- -----------
Feb. 2, Feb. 3, Feb. 2, Feb. 3,
2002 2001 2002 2001
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Net Sales $ 198,744 $ 183,555 $ 656,956 $ 587,385
Cost of Sales 112,125 105,297 377,286 339,407
----------- ----------- ----------- -----------
Gross profit 86,619 78,258 279,670 247,978
Selling, general and
administrative
expenses 48,440 47,634 176,103 155,784
Depreciation and
amortization 7,850 5,830 27,566 20,880
----------- ----------- ----------- -----------
Operating income 30,329 24,794 76,001 71,314
Interest (income)
expense, net (86) 87 252 1,163
----------- ----------- ----------- -----------
Income before
income taxes 30,415 24,707 75,749 70,151
Provision for
income taxes 11,478 9,752 29,167 27,461
----------- ----------- ----------- -----------
Net income $ 18,937 $ 14,955 $ 46,582 $ 42,690
=========== =========== =========== ===========
Diluted earnings
per share $ 0.70 $ 0.56 $ 1.73 $ 1.60
=========== =========== =========== ===========
Diluted weighted
average number
of shares
outstanding 27,134 26,736 26,964 26,668
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED BALANCE SHEETS
(In thousands)
Feb. 2, Feb. 3,
2002 2001
----------- -----------
Current assets:
Cash and cash equivalents $ 45,191 $ 8,141
Accounts receivable 11,895 9,118
Inventories 59,095 68,105
Other current assets 15,844 13,609
----------- -----------
Total current assets 132,025 98,973
Property and equipment, net 132,999 121,975
Other assets, net 17,825 10,748
----------- -----------
Total assets $ 282,849 $ 231,696
=========== ===========
Current liabilities:
Revolving credit facility $ 0 $ 3,324
Accounts payable 22,177 28,345
Accrued expenses and other
current liabilities 32,506 26,360
----------- -----------
Total current liabilities 54,683 58,029
Other liabilities 11,160 7,000
----------- -----------
Total liabilities 65,843 65,029
Stockholders' equity 217,006 166,667
----------- -----------
Total liabilities and
stockholders' equity $ 282,849 $ 231,696
=========== ===========
CONTACT: The Children's Place
Seth Udasin
Chief Financial Officer
201/558-2409
or
Morgen-Walke Associates, Inc.
Suzanne Rosenberg/Ankit Goyal/
Martha Rodriguez
Media: Laura Novak/Stephanie Sampiere
212/850-5600
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