• fashion united

The Children’s Place posts rise in Q3 net sales and profit


The Children’s Place reported net sales increase of 3.4 percent to 490 million dollars in the third quarter of 2017, while comparable retail sales increased 5.1 percent. Net income was 44.1 million dollars or 2.44 dollars per diluted share compared to 44.2 million dollars or 2.36 dollars per diluted share, the previous year.

Commenting on the company’s results, Jane Elfers, President and Chief Executive Officer, said in a statement: “We delivered exceptional operating results in the third quarter with comparable retail sales, gross margin, operating margin and earnings per diluted share all exceeding last year. Looking ahead, while we are only a couple of weeks into the fourth quarter, our business is strong.”

Highlights of The Children’s Place’s Q3 performance

Adjusted net income was 46.7 million dollars or 2.58 dollars per diluted share compared to 42.8 million dollars or 2.29 dollars per diluted share, in the third quarter last year.

Gross profit was 202.4 million dollars compared to 194.5 million dollars in the third quarter of 2016 and adjusted gross profit was 202.4 million dollars compared to 194.4 million dollars last year, and leveraged 30 basis points to 41.3 percent of sales. Operating income was 64.1 million dollars compared to 62.1 million dollars in the third quarter of 2016, while adjusted operating income was 68.4 million dollars or 14 percent of net sales, compared to 62.4 million dollars in the third quarter last year, leveraging 80 basis points compared to last year.

Fiscal year to date net sales up 2.8 percent

Net sales increased 2.8 percent to 1,300.3 million dollars in the first nine months and comparable retail sales increased 4.8 percent. Net income was 94.6 million dollars or 5.19 dollars per diluted share compared to 68.1 million dollars or 3.56 dollars per diluted share, the previous year. Adjusted net income was 98.3 million dollars or 5.39 dollars per diluted share compared to 68.4 million dollars or 3.57 dollars per diluted share.

Gross profit was 501.4 million dollars compared to 483.7 million dollars last year. Adjusted gross profit was 502.1 million dollars or 38.6 percent of net sales, leveraging 40 basis points compared to last year. Operating income was 109.7 million dollars compared to 98.8 million dollars in fiscal 2016, while adjusted operating income was 121.9 million dollars or 9.4 percent of net sales, compared to 101.7 million dollars or 8 percent of net sales last year, leveraging 140 basis points.

The company opened one store and did not close any stores during the third quarter of 2017 and ended the quarter with 1,027 stores, a decrease of 3.2 percent compared to the prior year. Since the fleet optimization initiative was announced in 2013, The Children’s Place has closed 156 stores. The Company’s international franchise partners opened 10 points of distribution and closed three in the third quarter, and the company ended the quarter with 168 international points of distribution open and operated by its seven franchise partners in 19 countries.

The Children’s Place updates FY17 outlook

The company said that it is updating its outlook for fiscal 2017 and now expects adjusted net income per diluted share to be in the range of 7.46 to 7.51 dollars, inclusive of a 0.91 dollar benefit resulting from new accounting rules for the income tax impact on share-based compensation.

This compares to the company’s previous guidance for adjusted net income per diluted share of 7.23 dollars to 7.33 dollars, inclusive of 0.89 dollar benefit resulting from new accounting rules for the income tax impact on share-based compensation. Excluding the benefit from the new accounting rules, full year adjusted net income per diluted share guidance is projected to increase 20 percent to 21 percent compared to adjusted net income per diluted share of 5.43 dollars last year.

The company expects adjusted net income per diluted share in the fourth quarter will be between 2.07 and 2.12 dollars. This compares to adjusted net income per diluted share of 1.88 dollars in the fourth quarter of 2016. This guidance assumes a low single digit increase in comparable retail sales.

The company’s board of directors authorized a quarterly dividend of 0.40 dollar per share.


조회 2회

SSTS-SMPT 

Shinsung Bldg, 84, Pungseong-ro, 63-Gil, Gangdong-gu, Seoul, Korea T : +82-2-3709-9375 M : +82-10-7276-2527  E-mail : jinikong@ssts.co.kr​​