The Children’s Place Inc (NASDAQ:PLCE) saw its shares wither in price, on release of its third-quarter financial figures.
The company, headquartered in Secaucus, New Jersey, reported Wednesday that Net sales increased 0.4% to $524.8 million in the three months ended November 2, 2019 from $522.5 million in the prior-year quarter, primarily as a result of a comparable retail sales increase of 0.8%.
Net income was $43.0 million, or $2.77 per diluted share, in the third quarter, compared to $49.9 million, or $3.03 per diluted share, in the prior-year quarter Adjusted net income was $47.1 million, or $3.03 per diluted share, compared to adjusted net income of $50.7 million, or $3.07 per diluted share, in the comparable period last year.
Gross profit was $198.1 million, compared to the Q2 total of $204.4 million. Adjusted gross profit was $198.1 million during the third quarter, compared to $204.4 million in the comparable period last year, and de-leveraged 130 basis points to 37.8% of net sales, primarily as a result of increased penetration of its e-commerce business, which operates at a lower gross margin rate.
CEO Jane Elfers said, "Driven by a strong back-to-school season, we delivered a positive 0.8% comp in Q3 on top of a positive 9.5% comp in Q3 a year ago and EPS near the upper-end of our guided range, despite multiple headwinds, including prolonged warmer weather into late October, which negatively impacted sales of colder weather product in key regions across the country."
PLCE shares stumbled out of the gate, losing $12.66, or 17.9%, to $58.00
Related Stories
