EeyoreJMH
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Children's Place May Buy Disney
By Associated Press |
Posted August 5, 2004, 11:11 AM EDT
SECAUCUS, N.J. -- The Children's Place Retail Stores Inc. reported a 21 percent increase in July total sales on Thursday, and said it signed a non-binding letter of intent to buy Walt Disney Co.'s Disney Store retail chain.
Total sales for the four weeks ended July 31 rose 21 percent to $60.4 million from $49.8 million a year ago. Same-store sales, or sales at stores open at least 1 year, increased 14 percent, compared with a 7 percent increase in the prior-year period. Analysts had forecast same-store sales growth of 3.7 percent in the latest period.
Sales for the second quarter increased 19 percent to $189.2 million from $159.1 million last year, and same-store sales were up 10 percent. Year-to-date, total sales rose 22 percent to $414.9 million, as same-store sales rose 13 percent year-over-year.
The mall-based children's clothing retailer said that while sales were up due to a summer promotion during the month, the results had no impact on its gross margin. Based on July sales, the company forecasts a second-quarter loss of 38 cents to 40 cents per share, in line with analysts's estimates of a loss of 39 cents, according to Thomson First Call. Children's Place is scheduled to report full second-quarter results Aug. 12.
Regarding ongoing talks regarding Disney Stores in the United States and Canada, the company said it may operate the retail chain under a long-term license arrangement.
The Children's Place shares were recently down 42 cents, or 2.1 percent, at $19.45 on the Nasdaq.
By Associated Press |
Posted August 5, 2004, 11:11 AM EDT
SECAUCUS, N.J. -- The Children's Place Retail Stores Inc. reported a 21 percent increase in July total sales on Thursday, and said it signed a non-binding letter of intent to buy Walt Disney Co.'s Disney Store retail chain.
Total sales for the four weeks ended July 31 rose 21 percent to $60.4 million from $49.8 million a year ago. Same-store sales, or sales at stores open at least 1 year, increased 14 percent, compared with a 7 percent increase in the prior-year period. Analysts had forecast same-store sales growth of 3.7 percent in the latest period.
Sales for the second quarter increased 19 percent to $189.2 million from $159.1 million last year, and same-store sales were up 10 percent. Year-to-date, total sales rose 22 percent to $414.9 million, as same-store sales rose 13 percent year-over-year.
The mall-based children's clothing retailer said that while sales were up due to a summer promotion during the month, the results had no impact on its gross margin. Based on July sales, the company forecasts a second-quarter loss of 38 cents to 40 cents per share, in line with analysts's estimates of a loss of 39 cents, according to Thomson First Call. Children's Place is scheduled to report full second-quarter results Aug. 12.
Regarding ongoing talks regarding Disney Stores in the United States and Canada, the company said it may operate the retail chain under a long-term license arrangement.
The Children's Place shares were recently down 42 cents, or 2.1 percent, at $19.45 on the Nasdaq.
