Childrens Place Posts In-Line Q2 Loss, But Revenue Misses Estimates

reported in-line adjusted loss for the second quarter, but the company's sales missed analysts' estimates. The Secaucus, New Jersey-based company reported a quarterly loss of $13.7 million, or $0.67 per share, versus a year-ago loss of $10.7 million, or $0.49 per share. Excluding one-time items, the company's loss came in at $0.33 per share. Its revenue declined to $366.5 million from $384.6 million. However, analysts were expecting a loss of $0.33 per share on revenue of $381.7 million. The average estimate among 10 Estimize users was for a loss of $0.32 per share and revenue of $381.95 million. Its comparable retail sales declined 3.5 percent in the second quarter. Gross profit dropped to $115.0 million from $119.1 million. Selling, general and administrative expenses increased to $118.3 million from $117.1 million. During the quarter, Childrens Place opened 1 store and closed 7 stores. The company's board approved a quarterly dividend of $0.15 per share. Jane Elfers, President and Chief Executive Officer, said, "We delivered an adjusted loss per diluted share of ($0.33) in the quarter compared to ($0.37) in the second quarter of 2014. Comparable retail sales were negative (3.5%), primarily driven by a significant deceleration of consumer traffic as the quarter progressed, resulting in a more intense promotional environment than anticipated, which was further exacerbated by the continuing west coast port issues experienced by our competitive set. Despite these headwinds, we were able to leverage adjusted gross margin by 40 basis points and improve our adjusted operating margin by 80 basis points compared to last year. Importantly, our inventories are in excellent shape as we transition to the second half of the year -- down 7.4% at quarter-end compared to last year." For the current quarter, Children's Place projects earnings of $1.90 to $1.96 per share, versus analysts' estimates of $1.97 per share. The company projects full-year earnings of $3.35 to $3.45 per share, versus earlier forecast of $3.30 to $3.45 per share. Children's Place shares fell 2.06 percent to $56.00 in pre-market trading.