Through December 31, 2005, the Company has opened 55 Children's Place stores and closed three.
In addition, the Company has opened 18 Disney Stores and closed one.
"December sales were exceptionally strong at The Children's Place, which they attribute to increased consumer awareness of their unique fashion, quality and value equation and the clarity of their merchandise offering," said Ezra Dabah, Chairman and Chief Executive Officer of The Children's Place Retail Stores Inc.
"This combined with an effective marketing strategy, a focused store operations plan and strategic inventory flows resulted in substantial year-over-year sales and earnings growth."
Dabah continued, "At the Disney Store, their Holiday sales were significantly below their expectations due to a substantial decrease in average unit retail and the lack of a compelling merchandise presentation.
In addition, they will modify their merchandise strategy to increase average unit retail and to appeal to a broader consumer base.
They continue to believe strongly in the future growth and success of the Disney Store business, and they look forward to 2006 as they evolve their merchandise strategies and leverage the exciting and extensive new line up of Disney content."
The Company stated that, given the strength of The Children's Place business, it continues to anticipate consolidated fourth quarter earnings per share of $1.61 to $1.66.
Approximately $1.21 per share will be generated from The Children's Place brand including shared services, an approximate 73 percent increase over last year, and approximately $0.40 per share will be generated from the Disney Store brand, an approximate 60 percent increase over last year.
The Company acquired the Disney Store business effective November 21, 2004.
Children's Place Retail Stores, Inc designs, contracts to manufacture and sells high-quality, value-priced merchandise under the proprietary "The Children's Place" and licensed "Disney Store" brand names.
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