Children’s Place expects 0.7 percent rise in Q1 comparable sales

The Children’s Place, for the thirteen weeks ended May 2, 2015, expects to report comparable retail sales increase of 0.7 percent during the quarter despite adverse weather in many parts of the country. The company expects total sales to be approximately 405 million dollars and adjusted gross margin increase of 130 to 150 basis points compared to last year, significantly above the previously announced guidance range of down 20 to up 10 basis points.

Commenting on the anticipated first quarter performance, Jane Elfers, President and Chief Executive Officer, said, “Our business picked up meaningfully in the second half of the quarter driving positive comparable retail sales and a robust gross margin. As a result, we expect our first quarter adjusted EPS to be in the range of 0.81 dollars to 0.83 dollars, versus our guidance range of 0.60 dollars to 0.65 dollars. This compares to adjusted EPS of 0.68 dollars in the first quarter of 2014.”

The company’s board of directors also declared another quarterly dividend of 0.15 dollars per share, payable on July 9, 2015. For fiscal 2015, the company now expects adjusted net income per diluted share will be in the range of 3.30 dollars to 3.45 dollars, inclusive of a 0.15 dollar negative impact from foreign exchange. This compares to adjusted net income per diluted share of 3.05 dollars in fiscal 2014. This guidance assumes an increase in comparable retail sales for the year of approximately 1 percent.

The company, for the second quarter of 2015 expects adjusted net loss per diluted share between 0.36 dollars and 0.32 dollars, inclusive of an estimated 0.02 dollar negative impact from foreign exchange. This compares to adjusted net loss per diluted share of 0.37 dollars in the second quarter of 2014. This guidance assumes an increase in comparable retail sales of approximately 1 percent.