The Children's Place Increases FY16 Adj. EPS Guidance - Quick Facts

(RTTNews) - The Children's Place, Inc. (PLCE), the largest pure-play children's specialty apparel retailer in North America, updated its outlook for fiscal 2016 and now expects adjusted net income per share to be in the range of $4.60 to $4.70, inclusive of a $0.08 negative impact from foreign exchange. This compares to previous guidance of $4.17 to $4.27 per adjusted share. Analysts polled by Thomson Reuters expect the company to report profit per share of $4.26. Analysts' estimates typically exclude special items.

The Children's Place said its guidance assumes a positive low single digit increase in comparable retail sales for the year. This guidance for adjusted net income per share excludes year to date charges of approximately $2.6 million primarily related to asset impairment charges that the company believes are not reflective of the performance of its core business.

The Children's Place expects adjusted net income per share in the third quarter of 2016 to be between $1.93 and $2.01, inclusive of an estimated $0.03 negative impact from foreign exchange. Analysts polled by Thomson Reuters expect the company to report profit per share of $2.02.

For the second-quarter, net loss was $2.0 million, or $0.11 per share, compared to a net loss of $13.7 million, or $0.67 per share, the previous year. Adjusted net loss was $0.2 million, or $0.01 per share, inclusive of a negative $0.02 impact due to foreign exchange, compared to an adjusted net loss of $6.8 million, or $0.33 per share, in the second quarter last year. On a constant currency basis, adjusted net income per share was $0.01.

Second-quarter net sales increased 1.4% to $371.4 million. On a constant currency basis, net sales were $373.1 million, a 1.8% increase, compared to net sales of $366.5 million in the second quarter of 2015. Comparable retail sales increased 2.4% in the second quarter of 2016.