Proactive Investors - Run By Investors For Investors

Children's Place posts 1Q beat, but shares turn tail

The surprise results came as the company liquidated 800 Gymboree and Crazy 8 stores in the quarter
According to the Census Bureau, retail sales dropped 0.2% in April, which may have weighed on PLCE shares

The Children's Place Inc.(NASDAQ:PLCE) reported first-quarter results that outpaced Street expectations Wednesday morning, but shares fell nonetheless as US retail sales data disappointed.

The retailer saw adjusted earnings fall to $0.36 per share from $1.78 in the year ago quarter, easily outpacing analyst expectations of a $0.49 per share loss. Revenue fell 5.5% to $412.4 million, compared with Street estimates of $399 million.

Net income dropped to $4.5 million from $31.5 million year over year. 

The surprsie results came as the company liquidated 800 Gymboree and Crazy 8 stores in the quarter, which overlapped with 70% of Children’s Place stores.

After surging in pre-market trading, shares crashed back to earth, dropping 8.3% to $102.79.

READ: The Children's Place shares sink after retailer misses Street's fiscal 4Q estimates and and announces purchase of Gymboree assets

One reason for the decline could be lagging US retail sales data. According to data from the Census Bureau released Wednesday morning, retail sales reversed course in April, dropping 0.2% after a 1.7% increase in March. Analysts had called for growth of 0.2%.

Looking ahead, the New Jersey company second quarter EPS between flat and $0.20 on revenue between $415 million and $420 million. Analysts are calling for $0.10 EPS on revenue of $420.4 million.

For fiscal 2019, it expects between $5.75 and $6.25 EPS on revenue between $1.91 billion and $1.93 billion, while Street expectations are $5.60 EPS on revenue of $1.91 billion.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

View full PLCE profile View Profile

Children's Place Inc Timeline

Related Articles

medical imaging graphic
June 13 2019
Here we take a closer look at the imaging and diagnostics firm IQ-AI
May 21 2019
H&T investing in digital offeringProfits gain in 2018Outlook upbeat as strategy pays off
May 23 2019
Company is looking for more acquisitions after integration of Metro Rod
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use