Children’s Place 2Q comps up 4.7%
SECAUCUS, N.J. The Children’s Place Retail Stores announced second-quarter net sales of $345.3 million for the thirteen weeks ended July 31, a 9.4% increase compared with $315.7 million in the second quarter of 2009.
Comparable-retail sales, which include online sales, increased 4.7% in the second quarter of fiscal 2010 compared with a decline of 8.5% the previous year. During the second quarter of 2010, comparable-store sales increased 3.3% in the United States and 0.8% in Canada, and comparable-online sales increased 30.4%.
The loss from continuing operations after tax was $8.3 million, or 30 cents per share, in the second quarter of 2010, compared with a loss of $7.2 million in the second quarter of 2009, or 24 cents per share, including several transactions affecting comparability between the quarters.
“We posted solid results for the second quarter, narrowing our seasonal operating loss through a combination of top line growth and disciplined expense management. We also continued to make substantial progress on our longer-term growth initiatives and believe we are well positioned to gain market share,” commented Jane Elfers, president and CEO of The Children’s Place. “While the economic environment remains uncertain, we are focused on driving improved sales and profitability in our business for the long term.”
The company updated its guidance for fiscal 2010 and now projects earnings per diluted share from continuing operations will be in the range of $3.08 to $3.18 for fiscal 2010, reflecting its first half results, from its previous guidance of $3.05 to $3.15. The company provided initial guidance for earnings per diluted share from continuing operations for the third quarter of 2010 to be in the range of $1.38 to $1.43.
Deloitte Consumer Spending Index down 4.45%
NEW YORK The Deloitte Consumer Spending Index fell to 4.45%, from an upwardly revised gain of 4.63% a month ago. According to the company, the Index experienced its third straight month of decline in July, due in large part to weakness in the housing market.
“American households continue to be cautious about spending while economic growth continues to be uneven,” said Alison Paul, vice chairman and Deloitte’s retail leader in the United States. “At the same time, consumers economized over the past two years and likely have pent up demand for goods they have foregone. Retailers should consider strategies to stay nimble amid shifts in consumer behavior in the months ahead. Customer data and business analytics may be particularly valuable for retailers to hone pricing, merchandise and promotions that attract their target consumers.”
Limited Brands posts earnings gains
COLUMBUS, Ohio Limited Brands reported that adjusted earnings per share for the second quarter ended July 31, were 36 cents compared with 19 cents for the quarter ended Aug. 1, 2009, which exclude certain significant items in both years as detailed below.
The company reported a comparable store sales increase of 7% for the second quarter ended July 31, compared with the second quarter ended Aug. 1, 2009. The company reported net sales of $2.243 billion for the second quarter, compared with sales of $2.067 billion last year.
The company stated that it expects 2010 third quarter earnings per share to be 3 cents to 8 cents compared with adjusted earnings per share of 2 cents per share last year. The company now expects August comparable-store sales to increase in the mid to high single digit range versus its previous guidance for a low single digit increase.
For 2010, the company increased its adjusted earnings per share forecast to $1.68 to $1.83 from $1.60 to $1.80 previously.