The company today announced that it entered into a franchise agreement with Grupo David, a leading retail corporation headquartered in Panama, to expand its brand to Latin America and the Caribbean with the potential to open 35 to 40 stores over the next few years beginning in the fall of 2014.
The company also announced that its board declared a quarterly cash dividend of $0.1325 per share to be paid July 17, 2014 to shareholders of record at the close of business on June 27, 2014.
Earlier, Children's Place reported first quarter 2014 net income declined 29% from the year before, although it beat expectations.
Net income was $15.3 million, or 68 cents per share, compared to $19.3 million, or 83 cents per share, a year ago. Revenue was down 3.1% percent to $410.1 million from $423.2 million.
Analysts had expected earnings of 61 cents per share and revenue of $408.1 million, according to FactSet.
For the full year, the company expects adjusted earnings of between $2.90 per share and $3.05 per share, compared with its previous guidance of between $2.85 per share and $3.05 per share. Analysts expect earnings of $3.01 per share.
"We rate CHILDRENS PLACE RETAIL STRS (PLCE) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."