Children’s Place net income, sales fall in Q1; to expand in Latin America
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.”
Kirkland’s kicks up income, sales in Q1
Nashville, Tenn. – Kirkland’s Inc. reported positive results for the first quarter of fiscal 2014. On a year-over-year basis, net income grew 17% to $2.1 million from $1.8 million.
Net sales increased 6.9% to $108.3 million compared with $101.2 million, and same-store sales grew 5%. The company was able to shake off the effects of bad weather in the early part of the quarter.
“We are pleased with the sales momentum during the quarter in our stores and online after the slower start related to adverse weather events,” said Robert Alderson, president and CEO of Kirkland’s. “Despite a somewhat more promotional environment late in the quarter, sales remained strong leading to earnings performance at the high end of our guidance. The year thus far is proceeding according to our plan, and we continue to expect benefits for the balance of the year from our investments in store growth, merchandise systems, e-commerce and branding initiatives.”
Men’s Wearhouse extends Jos. A. Bank offer to June 5
Fremont, Calif. – The Men’s Wearhouse has extended its all-cash tender offer for $65 per share for all of the currently outstanding shares of common stock of Jos. A. Bank to June 5, unless further extended. The tender offer was previously set to expire on May 21.
As of May 21, approximately 21.8 million shares of Jos. A. Bank common stock have been validly tendered in, and not withdrawn from the tender offer. BofA Merrill Lynch and J.P. Morgan Securities LLC are serving as financial advisors to Men’s Wearhouse, and Willkie Farr & Gallagher LLP is serving as legal advisor.