Children's Place Q2 Net Loss Narrows, Results Beat Estimates - Quick Facts

(RTTNews) - Children apparel retailer Children's Place, Inc. (PLCE) Thursday reported second-quarter net loss which narrowed, helped by lower asset impairment charges and slightly higher sales. In addition, the quarterly loss was narrower than analysts' estimates, while revenues, too, surpassed them. The company also raised the bottom end of its annual earnings outlook.

Separately, the company said it has entered into a franchise agreement with Arvind Lifestyle Brands Limited to open stores in India. "The Children's Place will be the first of its kind children's retail format in India," said Sanjay Lalbhai, MD of Arvind Limited.

The company said it might open 50 stores in India over time beginning in the fall of 2015.

For the 3-month period, which the company exited with 1,113 stores, net loss stood at $10.7 million or $0.49 per share, narrower than the loss of $23.6 million or $1.05 per share a year ago.

Excluding certain items, loss totaled $8.2 million or $0.37 per share, compared with a loss of $9.4 million or $0.42 per share a year ago.

On average, twenty analysts polled by Thomson-Reuters estimated the company's quarterly loss to be $0.45. Analysts' estimates typically exclude one-time items.

Quarterly net sales increased to $384.63 million, from $382.4 million last year, above the $378.63 million Wall Street expected.

Comparable retail sales increased by 0.8 percent, the company said.

The board recommended a quarterly dividend of $0.1325 per share, payable on October 17 to shareholders of record on September 26.

Looking ahead, Children's Place expects adjusted annual earnings of $2.95 to $3.05 per share, compared with prior guidance for $2.90 to $3.05, and comparable retail sales to be flat to negative 1 percent.

For the third quarter, the company expects adjusted earnings of $1.74 and $1.82 per share, and flat to negative low single digit comparable retail sales.

Analysts expect annual earnings of $3.02 per share and third-quarter earnings of $1.82 per share.