Children's Place June comps fall 4%

SECAUCUS, N.J. The Children's Place Retail Stores today announced total consolidated sales of approximately $154.7 million for the five-week period ended July 7, an approximate 2% increase compared to sales of $151.7 million for the five-week period ended July 1, 2006. Consolidated comparable-store sales decreased approximately 4% for the five weeks ended July 7, compared to a 15% increase last year. Consolidated June comparable-store sales are comprised of an approximate 4% decrease at The Children's Place brand, and an approximate 3% decrease at Disney Store. Quarter-to-date, consolidated comparable-store sales are approximately flat compared to last year's 14% increase.

Based on quarter-to-date sales trends, the company anticipates reporting a loss per share of approximately 94 cents to 98 cents for the second quarter ending August 4.

``In the month of June, sales came in below our expectations at both brands,'' said Ezra Dabah, ceo of The Children's Place Retail Stores. ``As a result, we took significantly more markdowns which are negatively impacting our gross margin. We believe our assortments at both brands were not as focused and compelling as last year, which has been compounded by continuing mall traffic declines.''