Childrens Place Q1 Profit Tops Expectations

reported better-than-expected earnings for the first quarter and lifted its outlook for the full year. The Secaucus, New Jersey-based company reported quarterly earnings of $15.6 million, or $0.73 per share, compared to $13.6 million, or $0.61 per share, in the year-ago period. Excluding items, the company's earnings surged to $0.83 per share from $0.68 per share. Its sales slipped to $404.9 million from $410 million. However, analysts were expecting a profit of $0.82 per share on revenue of $405.35 million. The average estimate among 4 Estimize users was for earnings of $0.80 per share and revenue of $404.60 million. Its comparable retail sales rose 0.7 percent during the quarter. Gross profit in the first quarter rose to $152.1 million in the first quarter, from$148.3 million in the year-ago quarter. Operating income climbed to $23.2 million from $20.1 million. Selling, general and administrative expenses shrank to $114.5 million, versus $113.7 million in the year-ago period. During the first quarter, Childrens Place opened 2 stores and closed 7 stores. It ended the first quarter with 1,092 stores. Jane Elfers, President and Chief Executive Officer, said, "We have been sharply focused on the execution of our transformation plan, and we are pleased that our efforts are yielding substantial financial and operational results…Our strategy is generating results across the entirety of our business, and we expect to continue to deliver enhanced value to shareholders throughout 2015 and beyond as we realize the full benefits of our transformation." For the year, Childrens Place now projects earnings of $3.30 to $3.45 per share. Analysts had expected earnings of $3.43 per share. For the current quarter, Childrens Place projects a loss of $0.36 to $0.32 per share, versus analysts' estimates for a loss of $0.34 per share. Childrens Place shares fell 0.92 percent to close at $67.84 yesterday.