The Children’s Place tops Street 2Q forecasts
SECAUCUS, N.J. (AP) — Shares of The Children’s Place rose nearly 5 percent Thursday after the retailer reported a narrower loss in its second quarter and increased the lower end of its earnings outlook for the year.
The company also said it signed a deal to bring its stores to India. The franchise agreement will bring 50 stores to India starting next year, part of the company’s plan to increase growth by opening more stores around the world. It signed a similar deal in May, which will help it open 40 franchised children’s clothing stores in Latin America and the Caribbean over the next few years.
The announcements sent the company’s shares up nearly 5 percent Thursday.
For the quarter ending Aug. 2, the company reported a loss of $10.7 million, or 49 cents per share. That compares with a loss of $23.6 million, or $1.05 per share, in the same quarter a year ago.
Losses, adjusted for one-time gains and costs, were 37 cents per share, surpassing Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for a loss of 45 cents per share.
Revenue rose slightly to $384.6 million in the period from $382.4 million a year ago. Analysts expected $378.5 million, according to Zacks.
For the current quarter ending in October, The Children’s Place expects its per-share earnings to range from $1.74 to $1.82. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.77.
For the full year, the company now expects annual earnings to be in the range of $2.95 per share and $3.05 per share, up from its previous guidance between $2.90 per share and $3.05 per share.
The Secaucus, New Jersey-based company declared a quarterly dividend of 13.25 cents to be paid Oct. 17 to shareholders of record as of Sept. 26.
Shares of The Children’s Place Retail Stores Inc., which operates 1,113 stores around the world, rose $2.38, or 4.7 percent, to $52.83 in morning trading Thursday.