The Children's Place Reports July Sales; - Company Opens 21 New Stores in July -
Excluding sales of the Company's folding scooter, sales for July 2001 increased 20% over the prior year period. Comparable store sales for the four-week period decreased 17% as compared to a 12% increase for the restated four-week period ended August 5, 2000. Excluding sales of the folding scooter, comparable store sales for July decreased 10% from the prior year period. The Company opened 21 new stores during July 2001.
Total sales for the thirteen-weeks ended August 4, 2001 increased 8% to $116.3 million from $107.8 million reported in the year-ago period. For the second quarter of fiscal 2001, comparable store sales decreased 16% versus a 7% increase in the prior year period.
Total sales for the twenty-six weeks ended August 4, 2001 increased 16% to $276.8 million from $237.9 million reported in the year-ago period. Year-to-date, comparable store sales decreased 8% versus a 6% increase in the prior year period.
"As anticipated, our July sales results reflect a continued slowdown in store traffic. However, we are very well positioned with fresh and fashionable product in all of our stores as we enter the very important back-to-school selling season. We have effectively managed our inventory and our spring/summer merchandise represents only 6% of our total inventory, which is 23% less per average store than last year," stated Ezra Dabah, Chairman and Chief Executive Officer. "Our back-to-school merchandise is off to a great start. This season's more fashionable and broader assortment of fall merchandise has exceeded last year's performance on an average store basis. With the continued strong performance of our new stores, we remain extremely excited about our aggressive and profitable growth."
In conjunction with The Children's Place July sales release, you are invited to listen to the Company's pre-recorded July sales call with Seth Udasin, Chief Financial Officer, which will be available beginning at 8:00 a.m. Eastern Time today through August 15, 2001. To access the call, please visit the following web address: http://www.childrensplace.com or dial (402) 351-0814.
The Children's Place plans to report second quarter results, along with the Company's financial outlook, on August 16, 2001.
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 August 4, 2001, the Company operated 481 stores in 46 states. The Company also sells its merchandise through its virtual store located at 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.
CONTACT: The Children's Place Retail Stores, Inc.
Seth Udasin, 201/558-2409
or
Morgen-Walke Associates, Inc.
Suzanne Rosenberg/David Waldman
Media: Michael McMullan/Kate Talbot
212/850-5600