SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
| Date of Report (date of earliest event reported) | August 12, 2004 |
(Exact name of registrant as specified in its charter)
|
Delaware
(State or other jurisdiction of incorporation) |
0-23071 (Commission File Number) |
31-1241495 (IRS Employer ID Number) |
| 915 Secaucus Road, Secaucus, New Jersey | 07094 |
| (Address of principal executive offices) | (Zip Code) |
| Registrant's Telephone Number, including area code: | (201) 558-2400 |
| (Former name or former address, if changed since last report) |
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
| Exhibit Number |
Description |
| 99 | Press release dated August 12, 2004. |
Item 12. Results of Operations and Financial Condition.
On August 12, 2004, The Children’s Place Retail Stores, Inc. issued a press release announcing financial information for the fiscal quarter ended July 31, 2004. A copy of this press release is included as Exhibit 99 hereto.
[Remainder of page intentionally left blank;
signature on following page.]
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE CHILDREN'S PLACE RETAIL STORES, INC. By /s/ Seth L. Udasin Name: Seth L. Udasin Title: Vice President and Chief Financial Officer |
Dated: August 12, 2004
INDEX TO EXHIBITS
Current Report on Form 8-K
Dated August 12, 2004
The Children's Place Retail Stores, Inc.
| Exhibit Number |
Description |
| 99 | Press Release issued by the Company on August 12, 2004 |
EXHIBIT 99
PRESS RELEASE
FOR IMMEDIATE RELEASE
THE CHILDREN’S PLACE REPORTS 2004 SECOND
QUARTER
FINANCIAL RESULTS
Secaucus, New Jersey - August 12, 2004 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today reported financial results for the second quarter and six months ended July 31, 2004.
Second Quarter
| • | Net sales for the second quarter increased 19% to $189.2 million, compared with $159.1 million a year earlier. |
| • | Comparable store sales increased 10% in the quarter, versus a 3% increase for the same period last year. |
| • | Net loss was $9.9 million, compared to a net loss of $9.4 million last year. |
| • | Loss per share was $0.37 compared to a loss per share of $0.35 in the fiscal 2003 period. |
| • | The Company opened 16 new stores and closed one store during the second quarter. |
Six-Month Period
| • | Net sales for the six-month period increased 22% to $414.9 million, from $340.1 million for the same period in 2003. |
| • | Comparable store sales increased 13% for the period, compared to a 6% decrease for the same period last year. |
| • | Net income was $1.6 million, compared to a $3.8 million net loss in the year-ago period. |
| • | Diluted earnings per share were $0.06 compared to a loss per share of $0.14 in the 2003 period. |
| • | The Company opened 26 new stores during the six-month period, and closed two. |
“Increases in second quarter key performance indicators, including comparable store sales transactions, traffic and conversion, highlight our continued sales momentum,” said Ezra Dabah, Chairman and Chief Executive Officer of The Children’s Place. “In addition, a continued gain in market share, increased customer acceptance and growth in store productivity position us for long-term profitable growth.”
“We are pleased with the overall tone of business, as initial customer response to our Back-to-School merchandise has been favorable. Our customer depends on us for key items, making The Children’s Place a top Back-to-School destination. Importantly, we are very clean of old season merchandise, and our inventory investment in key items positions us to meet demand and ensure a strong in-stock position throughout the season.”
For fiscal 2004, the Company continues to anticipate full year earnings growth of approximately 40% over fiscal 2003.
The Children’s Place will host a webcast of its second 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, August 19, 2004.
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 ten. The Company designs, contracts to manufacture and sells its products under the “The Children’s Place” brand name. As of July 31, 2004, the Company operated 715 stores, including 667 stores in the United States, 47 stores in Canada and one store in Puerto Rico. 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.
| Contact: | The Children's Place Seth Udasin, Chief Financial Officer, 201/558-2409 Heather Anthony, Director, Investor Relations, 201/558-2865 |
(Tables Follow)
THE CHILDREN’S PLACE RETAIL STORES, INC.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
13 Weeks Ended: 26 Weeks Ended:
July 31, August 2, July 31, August 2,
2004 2003 2004 2003
-------------------------- -----------------------------
Net sales $ 189,165 $ 159,082 $ 414,945 $ 340,092
Cost of sales 130,866 108,612 264,787 219,732
---------- ------------ ----------- -----------
Gross profit 58,299 50,470 150,158 120,360
Selling, general and
administrative expenses 64,231 55,988 126,904 107,379
Depreciation and amortization 10,397 9,875 20,702 19,403
---------- ------------ ----------- -----------
Operating (loss) income (16,329) (15,393) 2,552 (6,422)
Interest income, net 81 52 107 145
----------- ------------ ------------ ------------
(Loss) income before income taxes (16,248) (15,341) 2,659 (6,277)
(Benefit) provision for income taxes (6,337) (5,982) 1,037 (2,447)
----------- ------------ ------------ ------------
Net (loss) income $ (9,911) $ (9,359) $ 1,622 $ (3,830)
=========== ============ ============ ============
Basic (loss) income per share $ (0.37) $ (0.35) $ 0.06 $ (0.14)
Basic weighted average number
of shares outstanding 26,860 26,620 26,837 26,609
Diluted (loss) income per share $ (0.37) $ (0.35) $ 0.06 $ (0.14)
Diluted weighted average number
of shares outstanding 26,860 26,620 27,516 26,609
THE CHILDREN’S PLACE RETAIL STORES, INC.
CONDENSED BALANCE SHEETS
(In thousands)
July 31, 2004 January 31, 2004 August 2, 2003
---------------- ------------------- ------------------
(Unaudited) (Unaudited)
Current assets:
Cash and cash equivalents $ 31,333 $ 74,772 $ 25,194
Accounts receivable 12,974 8,462 15,412
Inventories 136,563 96,128 87,321
Other current assets 26,631 20,070 26,042
--------------- ---------------- --------------
Total current assets 207,501 199,432 153,969
Property and equipment, net 146,016 146,707 154,617
Other assets, net 14,337 13,527 9,326
--------------- ---------------- --------------
Total assets $ 367,854 $ 359,666 $ 317,912
=============== ================ ==============
Current liabilities:
Revolving credit facility $ 0 $ 0 $ 426
Accounts payable 46,401 35,173 35,488
Accrued expenses and
other current liabilities 42,417 49,984 40,818
--------------- ---------------- --------------
Total current liabilities 88,818 85,157 76,732
Other liabilities 18,404 17,504 15,189
--------------- ---------------- --------------
Total liabilities 107,222 102,661 91,921
Stockholders' equity 260,632 257,005 225,991
--------------- ---------------- --------------
Total liabilities and stockholders' equity $ 367,854 $ 359,666 $ 317,912
=============== ================ ==============
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