Children's Place Q3 Profit Slips Yet Beats Street; Backs FY14 EPS View

(RTTNews) - Children apparel retailer Children's Place, Inc.'s (PLCE) third-quarter 2014 net income dropped to $36.9 million, or $1.70 per share, from $41.7 million, or $1.84 per share, a year before. Adjusted net income totaled $39.5 million, or $1.82 per share, compared with last year's $42.7 million, or $1.89 per share. On average, 21 analysts polled by Thomson-Reuters expected the company's quarterly profit to be $1.80 per share for the quarter. Analysts' estimates typically exclude one-time items.

Quarterly net sales declined to $487.3 million from $492.7 million last year, while 17 analysts estimated sales of $487.87 million. The quarter included the negative impact of approximately $3.9 million from currency exchange rate fluctuations. Comparable retail sales increased 0.2% for the third quarter 2014.

Operating income was $55.8 million, compared with $61.6 million in the third quarter of 2013. During the third quarter, the firm recorded charges of $4.3 million for unusual items, primarily comprising asset impairment charges as a result of the company's fleet optimization initiative and severance associated with corporate restructuring.

For the fourth quarter of fiscal 2014, Children's Place issued its initial guidance, expecting an adjusted net income per share between $0.83 and $0.93, assuming positive low single digit comparable retail sales.

Looking ahead, the company still sees full-year 2014 adjusted net income per share to be in the range of $2.95 to $3.05, consistent with previous guidance. This guidance assumes comparable retail sales for the year will be relatively flat. The company projects a $0.09 negative impact from foreign exchange in 2014.

Analysts anticipate annual earnings of $3.02 per share and fourth-quarter earnings of $0.93 per share.

In a separate press release, the firm announced the appointment of Anurup Pruthi as Senior Vice President and Chief Financial Officer, effective December 1, 2014, and would be reporting to Michael Scarpa, Chief Operating Officer.

Additionally, the board has declared a quarterly cash dividend of $0.1325 per share to be paid January 16, 2015 to shareholders of record at the close of business on December 26, 2014.