The Children’s Place Q3 comparable retail sales down 0.2 percent
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“We delivered earnings at the high end of our guidance range for the third quarter and continue to make significant progress on our strategic initiatives. We are well positioned to compete effectively in the fourth quarter and we are confirming our full year guidance,” commented Jane Elfers, President and Chief Executive Officer.
Net income was 36.9 million dollars, or 1.70 dollars per diluted share, in the third quarter of 2014, compared to a net income of 41.7 million dollars, or 1.84 dollars per diluted share, the previous year. Adjusted net income was 39.5 million dollars, or 1.82 dollars per diluted share, compared to 42.7 million dollars, or 1.89 dollars per diluted share, in the third quarter last year.
Gross profit in the third quarter of 2014 was 190.1 million dollars, compared to 201.8 million dollars in the third quarter of 2013. Adjusted gross profit was 190.3 million dollars this year, compared to 202.9 million dollars last year, and declined 220 basis points to 39 percent of sales as a result of merchandise margin deleverage and higher supply chain costs compared to the prior year.
Operating income was 55.8 million dollars, compared to 61.6 million dollars in the third quarter of 2013. Adjusted operating income in the third quarter of 2014 was 60.1 million dollars compared to adjusted operating income of 63.2 dollars last year, and de-leveraged 50 basis points to 12.3 percent of sales.
The Company opened 10 stores and closed 6 during the third quarter of 2014. The Company ended the quarter with 1,117 stores, a decrease of 1.6 percent compared to the prior year. The Company's international franchise partners opened 13 stores in the third quarter, and the Company ended the quarter with 67 international franchise stores open.
Net sales declined 1.2 percent to 1,282.1 million dollars, compared to 1,298.3 million dollars in the thirty-nine weeks of the prior year. Comparable retail sales declined 0.8 percent. Net income for the year to date 2014 period was 39.9 million dollars, or 1.81 dollars per diluted share, compared to net income of 37.4 million dollars, or 1.63 dollars per diluted share in the prior year period. Gross profit decreased 6.9 percent to 457.5 million dollars. Adjusted gross profit was 457.8 million dollars and de-leveraged 220 basis points compared to adjusted gross profit of 492.3 million dollars for the same period in fiscal 2013.