The Children's Place Reports 2003 Third Quarter Financial Results
-- Net Sales Increase 29%
-- Comparable Store Sales Increase 14%
-- Earnings Per Share Increase to $0.43, Compared to $0.06 Last
Year
-- Company Plans to Open Approximately 70 Stores in Fiscal 2004
SECAUCUS, N.J.--(BUSINESS WIRE)--Nov. 13, 2003--The Children's Place Retail Stores, Inc. (Nasdaq:PLCE) today reported financial results for the third quarter and nine months ended November 1, 2003.
Third Quarter
-- Net sales for the third quarter increased 29% to $223.3
million, compared with $173.4 million for the same period in
2002.
-- Comparable store sales increased 14% in the quarter, versus a
21% decrease for the same period last year.
-- Net income was $11.6 million, compared to net income of $1.6
million last year.
-- Earnings per share were $0.43 compared to earnings per share
of $0.06 in the 2002 period.
-- The Company opened 11 new stores during the third quarter, and
closed one.
Nine-Month Period
-- Net sales for the nine-month period increased 19% to $563.4
million, from $474.7 million for the same period in 2002.
-- Comparable store sales increased 1% for the period, compared
to a 15% decrease for the same period last year.
-- Net income was $7.8 million, compared to net income of $6.6
million in the year-ago period.
-- Earnings per share were $0.29 compared to earnings per share
of $0.25 in the 2002 period.
-- The Company opened 49 new stores during the nine-month period,
and closed three.
"We are very pleased with our third quarter financial results, as our cohesive brand message continued to build positive momentum with the consumer," said Ezra Dabah, Chairman and Chief Executive Officer of The Children's Place. "Our performance in the quarter represents the realization of our ongoing strategic initiatives.
"Following a successful Back-to-School season, our Holiday season is off to a strong start with the positive customer response to our first Holiday assortment. The consistency demonstrated in our execution is key to building customer loyalty for the Holiday season, and beyond. We are confident in our merchandise offering and marketing efforts, and believe our inventory is clean and well-positioned to drive a successful Holiday season."
Mr. Dabah also noted that the Company is continuing to expand its store base, and now expects to increase its new store openings to approximately 70 in fiscal 2004, including its first stores in Puerto Rico.
The Children's Place will host a webcast of its third quarter conference call today at 10:00 a.m., Eastern Time. Interested parties 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 site through Thursday, November 20, 2003.
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 10. The Company designs, contracts to manufacture and sells its products under the "The Children's Place" brand name. As of November 1, 2003, the Company operated 689 stores, including 649 stores in the United States and 40 stores in Canada. 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)
(Unaudited)
13 Weeks Ended: 39 Weeks Ended:
--------------- ---------------
Nov. 1, Nov. 2, Nov. 1, Nov. 2,
2003 2002 2003 2002
---- ---- ---- ----
Net sales $ 223,277 $ 173,403 $ 563,369 $ 474,745
Cost of sales 131,987 111,663 351,719 297,492
---------- ---------- ---------- ----------
Gross profit 91,290 61,740 211,650 177,253
Selling, general and
administrative
expenses 62,083 49,949 169,462 140,919
Depreciation and
amortization 10,154 9,300 29,557 26,011
---------- ---------- ---------- ----------
Operating income 19,053 2,491 12,631 10,323
Interest expense
(income), net 17 (118) (128) (483)
---------- ---------- ---------- ----------
Income before income
taxes 19,036 2,609 12,759 10,806
Provision for income
taxes 7,424 1,005 4,977 4,161
---------- ---------- ---------- ----------
Net income $ 11,612 $ 1,604 $ 7,782 $ 6,645
========== ========== ========== ==========
Basic income per share $ 0.44 $ 0.06 $ 0.29 $ 0.25
Basic weighted average
number of shares
outstanding 26,640 26,523 26,620 26,481
Diluted income per
share $ 0.43 $ 0.06 $ 0.29 $ 0.25
Diluted weighted average
number of shares
outstanding 27,153 26,756 26,961 27,064
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED BALANCE SHEETS
(In thousands)
Nov. 1, 2003 Feb. 1, 2003 Nov. 2, 2002
------------ ------------ ------------
(Unaudited) (Unaudited)
Current assets:
Cash and cash equivalents $ 44,182 $ 36,645 $ 14,446
Accounts receivable 12,747 13,571 17,047
Inventories 95,893 75,417 84,343
Other current assets 21,065 19,570 24,849
------------ ------------ ------------
Total current assets 173,887 145,203 140,685
Property and equipment,
net 149,354 155,000 161,537
Other assets, net 9,200 9,125 6,129
------------ ------------ ------------
Total assets $ 332,441 $ 309,328 $ 308,351
============ ============ ============
Current liabilities:
Revolving credit facility $ 0 $ 0 $ 0
Accounts payable 34,152 30,805 32,500
Accrued expenses and
other current
liabilities 44,008 35,124 36,947
------------ ------------ ------------
Total current liabilities 78,160 65,929 69,447
Other liabilities 15,815 14,391 13,405
------------ ------------ ------------
Total liabilities 93,975 80,320 82,852
Stockholders' equity 238,466 229,008 225,499
------------ ------------ ------------
Total liabilities and
stockholders' equity $ 332,441 $ 309,328 $ 308,351
============ ============ ============
CONTACT: The Children's Place, Secaucus
Seth Udasin, 201-558-2409
Heather Anthony, 201-558-2865
SOURCE: The Children's Place Retail Stores, Inc.