Children's Place Lifts Q4, FY16 Profit And Comparable Retail Sales View

(RTTNews) - The Children's Place, Inc. (PLCE) raised its guidance for fourth quarter and fiscal year 2016 comparable retail sales and adjusted net income per share.

Jane Elfers, President and Chief Executive Officer, said, "Our comparable retail sales were positive 6.9% through the first nine weeks of the fourth quarter, compared to positive 7.3% in the comparable nine week period in the fourth quarter of 2015. Based on these outstanding results, we are increasing our fourth quarter and fiscal year 2016 guidance for comparable retail sales and adjusted diluted EPS."

The Company now expects adjusted earnings per share for the fourth quarter of 2016 to be in the range of $1.53 and $1.58. This compared to the Company's previous guidance for adjusted earnings per share of $1.43 to $1.48. This guidance assumes a comparable retail sales increase of approximately 6% to 7% for the quarter compared to a 6.7% increase in the fourth quarter of 2015 and previous guidance of a low single digit increase. Analysts polled by Thomson Reuters expect the company to report earnings of $1.48 per share for the fourth-quarter. Analysts' estimates typically exclude special items. The Company is also updating its outlook for fiscal year 2016 and now expects adjusted EPS to be in the range of $5.10 to $5.15. This compares to the Company's previous guidance for adjusted diluted EPS of $5.00 to $5.05 and to adjusted EPS of $3.60 in fiscal 2015. This guidance assumes a comparable retail sales increase of approximately 5% for the year. Analysts expect annual earnings of $5.06 per share.

This guidance for adjusted EPS excludes net charges of approximately $0.2 million as of the end of the third quarter, primarily related to asset impairment charges and income related to the release of reserves for prior year uncertain tax positions that the Company believes are not reflective of the performance of its core business.