X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SECAUCUS, NJ–The Children’s Place had a net loss of 66 cents per share for its second quarter of 2005, its first year of operations after acquiring the Disney Stores brand. The hit comes from a net loss of $18.3 million in the quarter, compared to a $9.9 million net loss last year. The company attributes much the loss to the expenses of acquiring Disney Stores.

Net sales for the second quarter were up 68% to $318.7 million from last years, mostly due to Disney Stores sales. Subtracting that, 2Q sales were $215.3 million for Children’s Place stores (up 14% from last year) and $103.4 million for Disney Stores.

Same-store sales for the quarter were up 4%, versus a 10% increase last year. During 2Q, 16 Children’s Place stores were opened, one was closed, and one Disney Stores unit was opened. The best-performing stores were in the West, Southwest and Southeast, said Hiten Patel, CFO of the company.

“We believe we could have driven stronger sales at Disney Stores if we had been in a stronger inventory position,” Patel said. He noted that overall inventory is up 30% on a per-sf basis compared to two years ago, and less old-season merchandise is on hand than one year ago. “Disney Stores ended the second quarter clean of old-season merchandise and, in fact, we wish we had more fall product.”

The company anticipates consolidated earnings of $2.20 to $2.30 a share for 2005, up from the previously issued guidance of $2.15 to $2.25 per share. Third quarter earnings are predicted at 86 cents to 91 cents per share, and fourth quarter earnings at $1.61 to $1.66. The company continues to predict that the Disney Stores’ share of earnings will be 30 cents per share.

Thirty-three Children’s Place stores are planned to open before the end of the year, spaced out evenly between the third and fourth quarters. Sixteen Disney Stores units are scheduled to open this year, up for the original prediction of eight to 10, because “attractive real estate opportunities have presented themselves,” Patel said. Plans for 2006 include opening 60 to 70 Children’s Place stores and 15 Disney Stores units.

The company owns 768 the Children’s Place units and 307 Disney Stores units in North America, covering about 4.9 million sf of retail space, averaging 4,600 sf per store. The acquisition of Disney Stores was announced last October.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.