SECAUCUS, N. J., Sep 27, 2002 (BUSINESS WIRE) -- The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today announced that through September 25, 2002, comparable store sales have declined 30% for the month-to-date, and 22% for the quarter-to-date, compared to the same periods last year.

Based on quarter-to-date sales trends, the Company now expects to report break even results for the third quarter, and does not expect to meet current Wall Street estimates for the fourth quarter. While the Company will provide fourth quarter guidance at a later date, it noted that if current third quarter trends were to continue, fourth quarter earnings would be only slightly positive.

"While our latest Fall line had initial positive customer response, sales fell off dramatically in September. We believe this was due to over-assortment and over-design of our merchandise, particularly in our girls department," said Ezra Dabah, Chairman and Chief Executive Officer. "This situation was further compounded by late deliveries and low inventories, especially of our '2for' items, creating an inability to sustain their sales momentum. Additionally, several significant external factors affected our business, particularly the unseasonably warm weather, continued declines in mall traffic, and the overall weakness in the economy."

Mr. Dabah continued, "Despite these challenges, we remain confident in our strategy. We believe that a renewed focus on our core values of everyday low prices, high quality, and a unique and well-balanced merchandise assortment will return us to a path of profitable growth. Amy Hauk, who fills a void we had at the senior merchandising level, is bringing leadership, expertise, and greater discipline to the merchandising function and we expect to see the impact of her contributions in 2003. Importantly, we remain in a cash positive position, and have no long-term debt or any outstanding borrowings on our credit facility."

The Children's Place will host a conference call and webcast to discuss today's announcement this morning, Friday, September 27, 2002, at 8:30 am Eastern Time. Interested parties are invited to listen to the call by dialing 785-832-0201, or at the Company's website, www.childrensplace.com. A replay of the call will be available approximately one hour after the conclusion of the call, until midnight on Thursday, October 3, 2002. To access the replay dial 402-220-2976, or listen to the audio archive on the Company's website.

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 31, 2002, the Company operated 614 stores, including 590 in the United States and 24 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.

CONTACT:          The Children's Place
                  Seth Udasin, 201/558-2409
                  or
                  Heather Anthony, 201/558-2865

Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.

Copyright (C) 2002 Business Wire.  All rights reserved.