Childrens Place (NASDAQ: PLCE) reported Q3 EPS of $1.82, $0.02 better than the analyst estimate of $1.80. Revenue for the quarter came in at $487.3 million versus the consensus estimate of $487.9 million.

Childrens Place sees Q4 2014 EPS of $0.83-$0.93, versus the consensus of $0.93.

Childrens Place sees FY2014 EPS of $2.95-$3.05, versus the consensus of $3.02.

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The Children's Place Reports Third Quarter 2014 Results

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Reaffirms Fiscal 2014 Earnings Guidance Delivers Earnings per Share at the High End of Guidance Board Declares Quarterly Dividend

SECAUCUS, N.J., Nov. 20, 2014 (GLOBE NEWSWIRE) -- The Children's Place, Inc. (Nasdaq: PLCE), the largest pure-play children's specialty apparel retailer in North America, today announced financial results for the thirteen weeks ended November 1, 2014.

"We delivered earnings at the high end of our guidance range for the third quarter and continue to make significant progress on our strategic initiatives. We are well positioned to compete effectively in the fourth quarter and we are confirming our full year guidance," commented Jane Elfers, President and Chief Executive Officer.

Ms. Elfers continued, "We are focused on the successful execution of our key strategic initiatives: E-Commerce growth, the expansion of our wholesale and international businesses, investments in seamless retail, state of the art planning and allocation systems, and fleet rationalization. In addition, our strong cash flow provides us with the financial flexibility to continue to return capital to our shareholders."

Third Quarter 2014 Results

Net sales were $487.3 million in the third quarter of 2014. The quarter included the negative impact of approximately $3.9 million from currency exchange rate fluctuations. This compares to net sales of $492.7 million for the third quarter of 2013. Comparable retail sales increased 0.2% for the third quarter 2014.

Net income was $36.9 million, or $1.70 per diluted share, in the third quarter of 2014, compared to a net income of $41.7 million, or $1.84 per diluted share, the previous year. Adjusted net income was $39.5 million, or $1.82 per diluted share, compared to $42.7 million, or $1.89 per diluted share, in the third quarter last year.

Gross profit in the third quarter of 2014 was $190.1 million, compared to $201.8 million in the third quarter of 2013. Adjusted gross profit was $190.3 million this year, compared to $202.9 million last year, and declined 220 basis points to 39.0% of sales as a result of merchandise margin deleverage and higher supply chain costs compared to the prior year.

Selling, general and administrative expenses were $116.1 million compared to $123.5 million in the third quarter of 2013, as a result of strong expense management. Adjusted SG&A was $115.0 million compared to adjusted SG&A of $123.2 million last year; $8.2 million lower than a year ago, and leveraged 140 basis points to 23.6% of sales.

Operating income was $55.8 million, compared to $61.6 million in the third quarter of 2013. Adjusted operating income in the third quarter of 2014 was $60.1 million compared to adjusted operating income of $63.2 last year, and de-leveraged 50 basis points to 12.3% of sales.

During the third quarter, the Company recorded charges of $4.3 million for unusual items, which primarily consisted of asset impairment charges as a result of the Company's fleet optimization initiative and severance associated with corporate restructuring.

Adjusted net income, adjusted gross profit, adjusted SG&A, and adjusted operating income are Non-GAAP measures, and are not intended to replace GAAP financial information. The Company believes the excluded items are not indicative of the performance of its core business and that by providing this supplemental disclosure to investors it will facilitate comparisons of its past and present performance. A reconciliation to GAAP financial information is provided at the end of this release.

Store Openings and Closures

The Company opened 10 stores and closed 6 during the third quarter of 2014. The Company ended the quarter with 1,117 stores and square footage of 5.223 million, a decrease of 1.6% compared to the prior year. The Company's international franchise partners opened 13 stores in the third quarter, and the Company ended the quarter with 67 international franchise stores open.

Fiscal 2014 Year-to-Date

Net sales declined 1.2% to $1,282.1 million, compared to $1,298.3 million in the thirty-nine weeks of the prior year. Comparable retail sales declined 0.8%. Year to date sales include the negative impact of approximately $10.2 million from currency exchange rate fluctuations.

Net income for the year to date 2014 period was $39.9 million, or $1.81 per diluted share, compared to net income of $37.4 million, or $1.63 per diluted share in the prior year period. Adjusted net income was $46.7 million, or $2.12 per diluted share, compared to $52.6 million, or $2.30 per diluted share in the prior year period.

Gross profit decreased 6.9% to $457.5 million. Adjusted gross profit was $457.8 million and de-leveraged 220 basis points compared to adjusted gross profit of $492.3 million for the same period in fiscal 2013.

Selling, general and administrative expenses decreased 5.4% to $347.0 million. Adjusted SG&A decreased 6.0% to $342.5 million and leveraged 140 basis points compared to the prior year period.

Operating income was $59.4 million, compared to operating income of $54.4 million in 2013. Adjusted operating income was $70.3 million, compared to $79.1 million the previous year and de-leveraged 60 basis points to 5.5% of sales.

Capital Return Program

During the third quarter of 2014, the Company repurchased 355,700 shares for approximately $17.7 million. At the end of the third quarter, $56.0 million of the $100 million share repurchase program authorized in March 2014 remained available for future share repurchases.

Additionally, the Company's Board of Directors approved a quarterly dividend of $0.1325 per share, payable on January 16, 2015 to shareholders of record at the close of business on December 26, 2014.

"We delivered earnings at the high end of our guidance range for the third quarter and continue to make significant progress on our strategic initiatives. We are well positioned to compete effectively in the fourth quarter and we are confirming our full year guidance," commented Jane Elfers, President and Chief Executive Officer.

Ms. Elfers continued, "We are focused on the successful execution of our key strategic initiatives: E-Commerce growth, the expansion of our wholesale and international businesses, investments in seamless retail, state of the art planning and allocation systems, and fleet rationalization. In addition, our strong cash flow provides us with the financial flexibility to continue to return capital to our shareholders."

For earnings history and earnings-related data on Childrens Place (PLCE) click here.