Children's Place Retail Stores Inc. (PLCE) was falling more than 15% Thursday after the children's apparel retailer guided current quarter expectations below consensus.
The New Jersey-based company reported third-quarter earnings of $3.07 a share on revenue of $522.5 million. Wall Street was expecting the company to report earnings of $3.07 on revenue of $511.2 million.
The company said it expects to generate between $547 million and $552 million in the current quarter, well below Zacks' expectations of $571.5 million in revenue for the period.
The company expects to earn between $2.07 and $2.17 a share, also falling well below Wall Street's estimate of $2.69.
"Moving on to Q4, due to stronger than anticipated digital demand in the back-half of 2018, we were forced to accelerate online access to our brick-and-mortar inventory and our ship from store fulfillment capabilities, resulting in an anticipated incremental fulfillment cost of $5 million, or $0.24 in EPS in Q4," said CEO Jane Elfers.
Separately, the company announced that it declared a quarterly cash dividend of 50 cents a share to be paid Dec. 28 to shareholders of record at the close of business on Dec. 17.
Children's Place shares have fallen nearly 30% year to date.