Children's Place reports preliminary Q1 2007 financial results
22 May '07
4 min read
The Children's Place Retail Stores Inc reported preliminary financial results for the fiscal first quarter ended May 5, 2007. These preliminary results may be subject to significant adjustment as a result of the Company's restatement of previously issued financial results to correct the accounting for past stock option grants to reflect the findings of the investigation into the Company's stock option practices, which were announced on January 31, 2007.
As a result, the Company is not providing net income on a per share basis or full comparative financial results for the first quarter ended April 29, 2006, and is providing only selected balance sheet data.
Consolidated net sales for the thirteen weeks ended May 5, 2007, increased 12% to $478.9 million, compared to $426.5 million for the thirteen weeks ended April 29, 2006. First quarter sales were comprised of $356.0 million from The Children's Place brand, an 11% increase over last year's sales of $322.0 million, and $122.9 million from Disney Store, an 18% increase compared to $104.5 million last year.
Due to the 53rd week in fiscal 2006, comparable store sales are compared to the 13 week period ended May 6, 2006. On that basis, consolidated comparable store sales increased 4% in the quarter. The Children's Place brand's comparable store sales increased 2% on top of last year's 9% increase and Disney Store's comparable store sales increased 8% on top of last year's 16% increase.
Preliminary net income was $13.1 million, which included approximately $2.5 million, pre-tax, in expenses associated with the Company's stock option investigation, of which $0.9 million is non-cash.
Excluding the costs associated with the stock option investigation, preliminary net income would have been $14.7 million. The Company has excluded this item because it does not believe it is an on-going expense of its core business. The Company believes it is a beneficial supplemental disclosure to investors in analyzing past and future performance.
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