Secaucus, N.J. – The Children’s Place Retail Stores Inc. saw net income and sales fall during the first quarter of fiscal 2014, compared to the same quarter a year earlier. The company plans to open 25 new North American stores, 10 fewer than originally planned, and close 35 stores for a net reduction of 10 stores during the fiscal year.
Net income totaled $13.6 million, down 29% from $19.27 million, while net sales were $410.1 million, a 3% drop from $423.2 million. Same-store sales declined 3.6%. Declining gross profits caused by deleveraging of the sales base and merchandise margin helped drive down net income, while foreign currency fluctuations impacted net sales.
Looking ahead, Children’s Place expects a same-store sales decline in the low single digits for fiscal 2014. In addition, Children’s Place has partnered with Grupo David, a retail corporation headquartered in Panama, to expand its brand to Latin America and the Caribbean with the potential to open 35 to 40 stores in the next few years beginning in the fall of 2014.
"We delivered first quarter results which exceeded our expectations despite weather challenges that continued into early April,” said Jane Elfers, president and CEO. “We achieved a positive 9% sales comp in April with the benefit of a later Easter and normalized weather patterns in the Northeast and Midwest regions of the United States. Our sales acceleration is a positive catalyst as we move forward into the second quarter.”