Children's Place comps drop 1%

SECAUCUS, N.J. The Children's Place Retail Stores today reported that consolidated net sales for the second quarter ended Aug. 4 increased 7% to $424.3 million compared to $395.6 million last year. Second quarter sales were comprised of $290.5 million from The Children's Place brand, an 8% increase over last year, and $133.8 million from Disney Store, a 6% increase over last year. Consolidated comparable-store sales decreased 1% in the quarter. The Children's Place brand's comparable-store sales decreased 1% versus last year's 13% increase. Disney Store's comparable-store sales were flat, compared to last year's 15% increase. Preliminary net loss for the second quarter was $27.1 million.

The company reported that consolidated net sales for the six-month period ended Aug. 4 increased 10% to $903.2 million compared to $822.1 million last year.  Sales for the six-month period were comprised of $646.5 million from The Children's Place brand, a 9% increase over last year, and $256.7 million from Disney Store, an 11% increase over last year. Consolidated comparable-store sales increased 2% for the six-month period.  The Children's Place brand's comparable-store sales increased 1% on top of last year's 12% increase.  Disney Store's comparable-store sales increased 3% compared to last year's 16% increase. Preliminary net loss for the six-month period was $14 million.

The company said it anticipates reporting earnings per share of $2.25 to $2.40 for fiscal 2007. This updated guidance includes the $3.4 million, pre-tax, in stock option investigation and related expenses incurred in the first half of fiscal 2007.

Ezra Dabah, ceo of The Children's Place Retail Stores, commented, ``We remain cautiously optimistic regarding the second half and are pleased with month-to-date sales trends. However, in view of the sales and margin trends we have experienced through the first half, we believe it's best to take a conservative view for the remainder of the year.''