Earnings Highlights and Review: Children’s Place’s Revenue Grew 4%; Adjusted EPS Soared 48%

Research Desk Line-up: Citi Trends Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 7, 2017 / Pro-Trader Daily publishes post-earnings coverage on The Children’s Place, Inc. (NASDAQ: PLCE) following the Company’s reporting of its first quarter fiscal 2017 financial results on May 18, 2017. The largest pure-play children’s specialty apparel retailer in North America surpassed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected Citi Trends, Inc. (NASDAQ: CTRN) for due-diligence and potential coverage as the Company reported on May 17, 2017, its financial results for Q1 FY17. Register for a free membership today, and be among the early birds that get access to our report on Citi Trends when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on PLCE; also brushing on CTRN. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=PLCE

http://protraderdaily.com/optin/?symbol=CTRN

Earnings Reviewed

For the quarter ended April 29, 2017, Children’s Place net sales increased 4.1% to $436.68 million compared to net sales of $419.35 million in Q1 2016. The Company’s revenue number exceeded analysts’ consensus of $422.5 million. Children’s Place comparable retail sales increased 6.1% in Q1 2017.

During Q1 2017, Children’s Place gross profit was $170.6 million compared to $165.4 million in Q1 2016. The Company’s adjusted gross profit was $171.0 million in the reported quarter compared to $165.3 million in the prior year’s same quarter. Children’s Place selling, general, and administrative expenses were $112.1 million in Q1 2017 compared to $109.2 million in Q1 2016. The Company’s adjusted SG&A was $106.9 million compared to $109.6 million in the prior year’s same quarter.

Children’s Place operating income for Q1 2017 was $42.3 million compared to $39.6 million in Q1 2016. The Company’s adjusted operating income in the reported quarter was $48.4 million, or 11.1% of net sales, versus an adjusted operating income of $39.2 million, or 9.4% of net sales, in the year earlier comparable quarter, leveraging 170 basis points compared to last year

For Q1 2017, Children’s Place net income was $36.2 million, or $1.97 per diluted share, compared to net income of $26.0 million, or $1.33 per diluted share, for Q1 2016, a 48% increase in net income per diluted share. The Company’s adjusted net income was $35.9 million, or $1.95 per diluted share, compared to adjusted net income of $25.8 million, or $1.32 per diluted share, in the year earlier same quarter, reflecting a 48% increase in adjusted net income per diluted share. The increase in adjusted net income per diluted share includes a $0.19 benefit resulting from the new accounting rules for the income tax impact on share-based compensation. Children’s Place smashed past Wall Street’s expectation for earnings of $1.64 million.

Store Openings and Closures

Children’s Place stated that in accordance with its fleet optimization initiative, the Company closed 7 stores and opened 1 store during Q1 2017. The Company ended the quarter with 1,033 stores and square footage of 4.829 million, a decrease of 2.8% compared to the prior year. Since the announcement of its fleet optimization initiative in 2013, Children’s Place has closed 149 stores.

Children’s Place international franchise partners opened 6 points of distribution in Q1 2017, and the Company ended the reported quarter with 156 international points of distribution open and operated by its 6 franchise partners in 18 countries.

Capital Return Program

During Q1 2017, Children’s Place repurchased 297,608 shares for approximately $33 million, inclusive of shares repurchased and surrendered to cover tax withholdings associated with the vesting of equity awards held by management.

Since 2009, Children’s Place has returned over $822 million to its investors through share repurchases and dividends. At the end of Q1 2017, approximately $344 million remained available for future share repurchases under the Company’s existing share repurchase programs.

Additionally, in May 2017, the Company’s Board of Directors authorized a quarterly dividend of $0.40 per share. The dividend for the second quarter is payable on July 10, 2017, to shareholders of record at the close of business on June 19, 2017.

Outlook

The Company is updating its outlook for FY17 and now expects adjusted net income per diluted share to be in the range of $7.10 to $7.20 compared to its previous guidance for adjusted net income per diluted share of $6.50 to $6.65. This guidance assumes an approximate 3.0% increase in comparable retail sales for the year.

For Q2 2017, Children’s Place expects adjusted net income per diluted share to be in the range of $0.70 and $0.75, inclusive of a $0.70 benefit resulting from new accounting rules for the income tax impact on share-based compensation compared to an adjusted net loss per share of ($0.01) in Q2 2016.

Stock Performance

On Tuesday, June 06, 2017, the stock closed the trading session at $102.35, falling 3.31% from its previous closing price of $105.85. A total volume of 891.33 thousand shares have exchanged hands, which was higher than the 3-month average volume of 624.33 thousand shares. The Children’s Place’s stock price soared 2.45% in the last three months and 45.67% in the previous twelve months. Moreover, the stock gained 1.39% since the start of the year. The stock is trading at a PE ratio of 16.83 and has a dividend yield of 1.56%. At Tuesday’s closing price, the stock’s net capitalization stands at $1.82 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

ReleaseID: 465063