Children's Place Reports First Quarter Share Jump

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Children's Place Reports First Quarter Share Jump
May 23, 2007



PHOTO: Ian Craig


The Children's Place Retail Stores Inc. said Tuesday that its first-quarter revenue rose 12 percent on growth at Children's Place and Disney Stores.

TCP is in process of restating earnings following a stock option investigation and said financial results could change. The primary net income was $13.1 million and they did not break out any per-share figures. Revenue for the quarter was $478.9 million, compared to $426.5 million in the year-ago quarter.

Same-store sales, or sales at stores open at least a year is a key measure of retailer performance as it measures the growth of exisiting stores instead of newly-opened stores. Same-store sales were up four percent in comparison to the 13-week period ended May 6, 2006. Disney Stores same-store sales rose 8 percent.

The company said it may soon acquire $175 million in charges associated with a license dispute with The Walt Disney Co. Although negotiations about the conflict are happening, Disney has accused the company of violating the licensing agreement by not renovating and maintaining stores, among other things. The $175 million would be put towards renovation and maintenance to Disney Stores over the next five years.


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