Losses Leave Children's Place With a Big Boo-Boo
Children's Place (PLCE) forecast a wider-than-expected second-quarter loss, as sales in established stores dropped at both its Children's Place and Disney Store chains.
The Secaucus, N.J., retailer expects to lose 98 cents a share for the quarter ending Aug. 4, compared with the 58-cent loss projected by Wall Street analysts. The company said same-store sales for June dropped 4%, with a 4% drop at Children's Place stores and a 3% decline at Disney stores.
``In the month of June, sales came in below our expectations at both brands,'' said CEO Ezra Dabah. ``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.''
The company said it expects to become current in its quarterly and annual filings with the Securities and Exchange Commission by the end of August. Children's Place has been fixing its accounting for past stock option grants.
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