The Children's Place Reports Third Quarter 2010 Financial Results

SECAUCUS, N.J., Nov. 18, 2010 (GLOBE NEWSWIRE) -- The Children's Place Retail Stores, Inc. (Nasdaq:PLCE),the largest pure-play children's specialty apparel retailer in North America, today announced third quarter net sales of $453.4 million for the thirteen weeks ended October 30, 2010, a 2.1% decline compared to $463.2 million in the third quarter of fiscal 2009.

Comparable retail sales, which include online sales, declined 5.7% in the third quarter of fiscal 2010 compared to a decline of 1.6% the previous year. During the third quarter of fiscal 2010, comparable store sales declined 8.8% in the U.S. and 7.9% in Canada, while comparable online sales increased 33.0%.

Income from continuing operations after tax was $31.2 million, or $1.14 per diluted share, in the third quarter of fiscal 2010, including a $0.04 per share benefit resulting from the Company's repurchase of 1.7 million shares during the quarter. In the third quarter of fiscal 2009, income from continuing operations after tax was $38.2 million, or $1.38 per diluted share.

"As we announced mid-October, third quarter sales and profits for The Children's Place were impacted by poorly performing fashion in the back-to-school line as well as unseasonably warm temperatures," commented Jane Elfers, President and Chief Executive Officer of The Children's Place. "While short-term market conditions remain challenging for our business, we are making significant progress on our longer-term growth initiatives which we believe will lead to enhanced sales and profitability in 2011 and beyond."

During the third quarter of fiscal 2010, the Company opened 28 stores.

Fiscal Year-to-Date

Net sales from continuing operations were $1,220.8 million fiscal year-to-date 2010, a 3.4% increase compared to $1,180.8 million for the same period last year. Comparable retail sales declined 1.1% fiscal year-to-date 2010 compared to a 2.7% decline last year.

Income from continuing operations after tax was $50.9 million, or $1.83 per diluted share, fiscal year-to-date 2010, including a $0.02 per share benefit from the share repurchase program announced on August 19, 2010. This compares to income from continuing operations after tax of $54.7 million, or $1.88 per diluted share, fiscal year-to-date 2009, which included several transactions that affect comparability between the years. Excluding those items that affect comparability from fiscal year-to-date 2009, adjusted income from continuing operations after tax was $47.3 million, or $1.63 per share. Adjusted income from continuing operations is a non-GAAP measure which the Company is providing as a supplemental disclosure. A reconciliation of income from continuing operations as reported is included in Table 3 of this press release.