Cost of closing stores hurts Children's Place 2Q
SECAUCUS, N.J. (AP) — The cost of closing its weaker stores deepened Children's Place Retail Stores Inc.'s second-quarter loss. But the retailer said Thursday that the beginning of the back-to-school season has been encouraging and gave a brighter outlook.
Shares of the children's clothing and accessories store chain rose in premarket trading Thursday.
The Children's Place lost $23.6 million, or $1.05 per share, for the period ended Aug. 3. A year earlier it lost $17.9 million, or 74 cents per share.
The latest quarter included $21.8 million in charges related to shutting down stores and other special items. Children's Place is closing 100 of its weaker stores over three years. The company has more than 1,100 stores.
Stripping out one-time charges, the company's per-share loss narrowed to 42 cents from 62 cents. Analysts polled by FactSet forecast a loss of 53 cents per share.
Revenue for the Secaucus, N.J. company increased 6 percent to $382.4 million from $360.8 million. Wall Street expected revenue of $381 million.
The company's adjusted profit view for the third quarter bested Wall Street's prediction and it lifted its outlook for the year to earnings of $3.15 to $3.28 per share. Its prior outlook was for $3.05 to $3.20 per share. That's mostly above analysts' view of $3.16 per share.
Shares rose 6 percent to $54.46 in premarket trading Thursday. The stock has gained 16 percent this year.