Market Overview

UPDATE: The Children's Place Posts Narrower-Than-Expected Q2 Loss, Shares Rise


Shares of The Children's Place (NASDAQ: PLCE) gained more than 3% in pre-market trading after the company reported a narrower-than-expected second-quarter loss.

The Secaucus, New Jersey-based company posted a quarterly net loss of $10.7 million, or $0.49 per share, versus a year-ago net loss of $23.6 million, or $1.05 per share. Its adjusted net loss came in at $0.37 per share, versus a year-earlier loss of $0.42 per share.

Its net sales rose to $384.6 million from $382.4 million. However, analysts were expecting a loss of $0.44 per share on revenue of $379.01 million. The recent quarter included the negative impact of around $2.8 million from currency exchange rate fluctuations.

Its comparable retail sales rose 0.8% in the quarter.

Selling, general and administrative expenses narrowed to $117.1 million from $124.4 million.

The company posted an operating loss of $16.5 million in the quarter, versus a year-ago loss of $35.6 million. Its adjusted operating loss in the quarter was $12.5 million.

The Children's Place opened 10 stores and closed 3 during the quarter. It ended the quarter with 1,113 stores.

During the quarter, it repurchased 301,301 shares for around $14.5 million. The company's board also approved a quarterly dividend of $0.1325 per share.

The Children's Place expects Q3 earnings of $1.74 to $1.82 per share, versus analysts' estimates of $1.82 per share. It now expects FY14 earnings of $2.95-3.05 per share, versus its earlier forecast of $2.90 to $3.05 per share.

"Our sales improved significantly in the second quarter, reflecting a rebound in shopping activity with more normalized weather patterns. While we expect the sector to remain highly promotional and the uncertainty surrounding the economy to continue, we are well positioned to compete effectively in the back half of 2014 and we are updating our full year guidance," commented Jane Elfers, President and Chief Executive Officer.

The Children's Place shares gained 3.07% to $52.00 in pre-market trading.


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