Children's Place Loss Widens, Sees Q3 EPS Above View, Lifts FY Outlook; Stock Up

(RTTNews) - Children's specialty apparel retailer Children's Place Retail Stores, Inc. (PLCE) Thursday reported a wider loss for the second-quarter, reflecting store impairment and closure expenses, despite 6 percent growth in revenues.

The company forecast third-quarter earnings per share above estimates and lifted its fiscal-year view. Following this, the shares rose about 6 percent in the morning trade.

For the second quarter, the company's net loss widened to $23.64 million or $1.05 per share from $17.92 million or $0.74 per share in the previous year.

During the quarter, the company recorded charges of $23.2 million for unusual items, consisting mainly store impairment and closure expenses of under-performing stores.

Excluding unusual items, adjusted net loss for the recent quarter was $0.42 per share, while the company posted a loss of $0.62 per share in the prior year.

On average, 20 analysts polled by Thomson Reuters expected loss per share of $0.53 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter grew 6.0 percent to $382.45 million. Sixteen analysts estimated revenues of $381.06 million for the quarter. Comparable retail sales decreased 0.4 percent from last year.

Looking ahead, for the third quarter, the company expects adjusted earnings per share to be between $1.83 and $1.89, assuming flat comparable retail sales. Analysts are looking for earnings of $1.78 per share for the quarter.

For fiscal 2013, the firm now expects adjusted earnings per share to be in the range of $3.15 to $3.28, assuming negative low-single digit comparable retail sales. Earlier, the firm had projected $3.05 to $3.20 per share, assuming flat to slightly negative comparable retail sales.

Twenty analysts expect earnings of $3.16 per share for the fiscal year.

The company said it opened 15 stores and closed 10, ending the second quarter with 1,116 stores. PLCE is currently trading at $54.37, up $2.97 or 5.78 percent, on a volume of 556 thousand shares.