Children’s Place Inc (NASDAQ:PLCE) found its stock collapsing Wednesday morning on Q1 results.
The specialty children’s apparel company, based in Seacaucus, New Jersey, announced net sales decreased 5.5% to $412.4 million in the first three months of 2019 from $436.3 million in the first three months of 2018, primarily as a result of a comparable retail sales decrease of 4.6%.
Net income was $4.5 million, or $0.28 per diluted share, in the first three months of 2019, compared to net income of $31.5 million, or $1.78 per diluted share, in the first three months of 2018.
Adjusted net income was $5.8 million, or $0.36 per diluted share, compared to adjusted net income of $33.2 million, or $1.87 per diluted share, in the first three months of last year.
For the first three months of 2019, the Company’s adjusted results exclude net expenses of approximately $1.3 million, as compared to excluded net expenses of approximately $1.7 million in the first three months of 2018, comprising certain items which the Company believes are not reflective of the performance of its core business.
CEO Jane Elfers announced, "Our Q1 results significantly exceeded our expectations despite our 70% store overlap with the approximately 800 Gymboree and Crazy 8 liquidations that occurred in Q1 and the headwind of a later Easter.
"Our sales began to accelerate in mid-March and continued to strengthen through the end of the quarter, resulting in positive comparable retail sales in excess of 20% for the month of April. Our product clearly resonated with our customers and our inventory is well positioned entering Q2."
Shares opened Wednesday faltered $9.37, or 8.4%, to $102.74
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