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SECAUCUS, N.J. The Children's Place Retail Stores reported that first quarter net sales increased 12% to $400.2 million, compared to $356 million. The company said comparable-store sales for the quarter increased 5%, on top of last year's 2% comparable-store sales increase.

Diluted earnings per share from continuing operations were 66 cents compared to diluted earnings per share from continuing operations of 64 cents last year.

Chuck Crovitz, interim ceo of The Children's Place Retail Stores, commented, "Our first quarter results show progress toward our goal of returning the Company to its historical level of profitability. During the quarter, we exited the Disney Store business at cash costs that are expected to be at the low end of our previously disclosed range of $50 million to $100 million. In addition, we began the reduction of our cost structure, announced lower capital spending for 2008 and expect our inventory position to be below last year's level at the end of the second quarter. Further, we continue to be encouraged by the customer response to our summer merchandise and believe that The Children's Place, as a leading value player in the children's apparel market, is well-positioned in this difficult economic environment."