Children's Place reports Q2 adjusted EPS 86c, consensus 76c
Reports Q2 revenue $373.6M, consensus $376.53M. Jane Elfers, President and CEO, said, "We continued to deliver outstanding operating results in the second quarter. Comparable retail sales, gross margin, operating margin and earnings per diluted share were above last year and exceeded the high end of our guidance range. Our second quarter comparable retail sales increased 3.1%, on top of a positive 2.4% comp in the second quarter of 2016 and store traffic showed sequential improvement compared to the first quarter. We saw increases in ADS driven by higher AUR and UPT, as well as merchandise margin expansion in the quarter. And, we repurchased $25 million in stock and paid $7 million in dividends in the quarter." Elfers continued, "Gymboree's recent bankruptcy, and the liquidation of 330 of their stores, presents a market share opportunity for The Children's Place. We are directly co-located in 216 of those locations and we have experienced sales and traffic lifts in those stores since the Gymboree liquidation began on July 18th."