Children's Place, Inc. Raises 2016 Earnings Outlook - Quick Facts

(RTTNews) - The Children's Place, Inc. (PLCE), the largest pure-play children's specialty apparel retailer in North America, announced the company now expects fiscal 2016 adjusted net income per share to be in the range of $4.17 to $4.27, inclusive of a $0.12 negative impact from foreign exchange. This compares to the previous guidance of $4.00 to $4.10 per share. The guidance assumes a positive low single digit increase in comparable retail sales for the year. Analysts polled by Thomson Reuters expect the company to report profit per share of $4.09. Analysts' estimates typically exclude special items.

Jane Elfers, President and CEO, said, "We are raising our guidance for the full year, despite the challenging environment and continued weakness in store traffic. This guidance assumes a low single digit comp sales increase, expansion of gross margin and disciplined expense control."

For the second quarter of 2016, the company expects adjusted net loss per share will be between $0.30 and $0.22, inclusive of an estimated $0.02 negative impact from foreign exchange. The guidance assumes a comparable retail sales increase of 1% to 2%. Analysts expect the company to report a loss per share of $0.22 for the quarter.

The Board of Children's Place declared a quarterly cash dividend of $0.20 per share to be paid July 7, 2016 to shareholders of record at the close of business on June 16, 2016.

Net income was $26.0 million, or $1.33 per share, in the first quarter of 2016, compared to $15.6 million, or $0.73 per share, the previous year. Adjusted net income was $25.8 million, or $1.32 per share, compared to $17.7 million, or $0.83 per share, in the first quarter last year. On a constant currency basis, adjusted net income per share was $1.33, a 60.2% increase, compared to the first quarter of 2015. On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $1.04 for the quarter. Analysts' estimates typically exclude special items.

Net sales increased 3.6% to $419.4 million in the first quarter of 2016. On a constant currency basis, net sales were $421.6 million, a 4.1% increase, compared to net sales of $404.9 million in the first quarter of 2015. Comparable retail sales increased 5.1%. Analysts expected revenue of $417.59 million for the quarter.

Shares of the company were up more than 7 percent, in premarket trading, following the earnings announcement.