The Children's Place Sales Increased 32%; Comparable Store Sales Increased 21%; Total Sales Increased 132%

SECAUCUS, N.J.--(BUSINESS WIRE)--Jan. 6, 2005--The Children's Place Retail Stores, Inc. (Nasdaq: PLCE), today announced total sales of $264.7 million for the five-week period ended January 1, 2005, a 132% increase over sales of $114.0 million for the same period last year. December sales include $114.5 million from the recently acquired Disney Store business in the United States and Canada. Comparable store sales for The Children's Place stores increased 21% on top of a 7% increase in December 2003. During the month, the Company opened three Children's Place stores and closed one store.

Total sales for the nine-week holiday selling season were $383.4 million, a 97% increase from sales of $194.9 million for the same period last year. Holiday season sales include six weeks of sales totaling $137.8 million from the recently acquired Disney Store business. Comparable store sales for The Children's Place stores increased 16% for the nine-week period on top of a 10% increase in the same period last year.

Total sales for the forty-eight weeks ended January 1, 2005, increased 42% to $1.079 billion from $758.3 million last year. Year-to-date, comparable store sales for The Children's Place increased 15% on top of a 3% increase last year. Year-to-date, the Company has opened 61 Children's Place stores and closed three.

The Company stated that based on strong Holiday sales results and expectations for January, it now anticipates fiscal 2004 earnings growth of approximately 80% over fiscal 2003. This increase reflects record fourth quarter earnings of approximately $0.72 per share from The Children's Place, and approximately $0.12 per share from the Disney Store business. As previously discussed, the anticipated accretion from the Disney Store business is before an anticipated one-time, non-cash gain related to negative goodwill associated with the acquisition, which the Company expects to recognize during the fiscal fourth quarter.

"We are very pleased with our strong Holiday sales results. The sales momentum we experienced in November grew stronger in December, and reflects the customers' escalated enthusiasm for our brand," said Ezra Dabah, Chairman and Chief Executive Officer of The Children's Place. "We are also pleased with the strong customer reaction to The Disney Store brand during the important Holiday season and we look forward to building on these strong trends."

In conjunction with The Children's Place December sales release, you are invited to listen to the Company's pre-recorded monthly sales call, which will be available beginning at 7:30 a.m. Eastern Time today through Thursday, January 13, 2005. To access the call, please visit the Company's website, www.childrensplace.com, or dial (402) 220-1182.

The Children's Place Retail Stores, Inc. is a leading specialty retailer of children's merchandise, ages newborn to ten years old. The Company designs, contracts to manufacture and sells high quality, value-priced apparel and accessories under the "The Children's Place" brand name. As of January 1, 2005, the Company operated 749 Children's Place stores; 688 stores in the United States, 55 stores in Canada and six stores in Puerto Rico, and sells Children's Place merchandise through its virtual store located at www.childrensplace.com. The Company also owns the subsidiary that operates the Disney Stores in North America, which consists of 298 stores in the United States and 15 stores in Canada.

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
Seth Udasin, 201-558-2409
or
Heather Anthony, 201-558-2865
SOURCE: The Children's Place Retail Stores, Inc.