SECAUCUS, N.J. (AP) — The Children’s Place Retail Stores Inc. said Tuesday that its fiscal fourth-quarter net income dropped 18 percent as it dealt with accounting changes and some charges.
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Its adjusted results and revenue topped analysts’ estimates. But the children’s clothing and accessories company gave first-quarter and full-year adjusted earnings forecasts below Wall Street’s view, saying bad weather and tough economic conditions were crimping consumer spending.
Its stock declined 2.5 percent in premarket trading.
For the period ended Feb. 2, Children’s Place earned $19.1 million, or 80 cents per share. That compares with $23.3 million, or 93 cents per share, a year earlier.
Stripping out the impact of an inventory accounting change, restructuring costs and other items, earnings were $1.15 per share. Analysts predicted earnings of $1.04 per share, according to a FactSet survey.
Revenue rose 11 percent to $509.2 million from $457.5 million. Wall Street forecast $495.7 million in revenue.
Revenue at stores open at least a year, a key indicator of a retailer’s health, climbed 4.3 percent. This metric excludes results from stores recently opened or closed.
Full-year net income fell 15 percent to $63.2 million, or $2.61 per share, from $74.3 million, or $2.90 per share, in the previous year. Annual revenue climbed 5 percent to $1.81 billion from $1.72 billion.
Revenue at stores open at least a year rose 2 percent.
Children’s Place anticipates first-quarter adjusted earnings of 60 cents to 65 cents per share and full-year adjusted earnings between $2.90 and $3.10 per share.
Analysts expect first-quarter earnings of $1.20 per share and full-year earnings of $3.55 per share.
Shares fell $1.15, or 2.5 percent, to $44.84 with about three hours to go before regular trading opens.
Children’s Place, which is based in Secaucus, N.J., had 1,095 stores as of Feb. 2.
