Anderson reported Chidren's Place had an "impressive quarter" with an EPS of $1.32 vs. estimates of $1.04. Comps across the company's profile were performing positively, and the "wear-now assortments resonated particularly well with customers," Anderson noted. The company also saw a together margin on clearance/inventories due to well-managed allocation and pricing.
Key Points
- Anderson believes "management is being prudent given the uncertain, choppy retail environment, and comp performance could lead to upside."
- The change in guidance of $1.00–$1.06 is due to "accelerated investments in China, continued investment in its online wholesale channel, and increased compensation expense," Anderson stated.
- Children's Place will start selling online in China in early 2017.
- The company is reaping the benefits of its new "company-wide transformation strategy" of better inventory management, allocation and replenishment system, Anderson said.
Shares of Children's Place were up 2.74 percent pre-market on Wednesday trading at $71.05.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.