We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Childrens Place Inc | NASDAQ:PLCE | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.29 | 3.73% | 8.07 | 8.06 | 8.07 | 8.34 | 7.00 | 8.34 | 693,608 | 19:45:03 |
x
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
31-1241495
|
(State or Other Jurisdiction of
|
|
(I.R.S. Employer
|
Incorporation or Organization)
|
|
Identification Number)
|
|
|
|
500 Plaza Drive
|
|
|
Secaucus, New Jersey
|
|
07094
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
Large accelerated filer
x
|
|
Accelerated filer
o
|
|
|
|
Non-accelerated filer
o
|
|
Smaller reporting company
o
|
(Do not check if a smaller reporting company)
|
|
|
|
|
Emerging growth company
o
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 1.
|
CONSOLIDATED FINANCIAL STATEMENTS
|
|
July 29,
2017 |
|
January 28,
2017 |
|
July 30,
2016 |
||||||
|
(unaudited)
|
|
|
|
(unaudited)
|
||||||
|
(in thousands, except par value)
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|||
Current assets:
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents
|
$
|
202,332
|
|
|
$
|
193,709
|
|
|
$
|
170,829
|
|
Short-term investments
|
55,800
|
|
|
49,300
|
|
|
75,100
|
|
|||
Accounts receivable
|
33,077
|
|
|
31,413
|
|
|
35,255
|
|
|||
Inventories
|
311,047
|
|
|
286,343
|
|
|
296,584
|
|
|||
Prepaid expenses and other current assets
|
54,100
|
|
|
32,894
|
|
|
31,071
|
|
|||
Deferred income taxes
|
—
|
|
|
17,504
|
|
|
18,703
|
|
|||
Total current assets
|
656,356
|
|
|
611,163
|
|
|
627,542
|
|
|||
Long-term assets:
|
|
|
|
|
|
|
|
|
|||
Property and equipment, net
|
263,311
|
|
|
264,280
|
|
|
277,195
|
|
|||
Deferred income taxes
|
46,567
|
|
|
29,734
|
|
|
25,368
|
|
|||
Other assets
|
4,441
|
|
|
5,322
|
|
|
3,432
|
|
|||
Total assets
|
$
|
970,675
|
|
|
$
|
910,499
|
|
|
$
|
933,537
|
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|||
LIABILITIES:
|
|
|
|
|
|
|
|
|
|||
Current liabilities:
|
|
|
|
|
|
|
|
|
|||
Revolving loan
|
$
|
54,500
|
|
|
$
|
15,380
|
|
|
$
|
43,860
|
|
Accounts payable
|
219,334
|
|
|
178,208
|
|
|
198,675
|
|
|||
Income taxes payable
|
3,359
|
|
|
13,812
|
|
|
4,635
|
|
|||
Accrued expenses and other current liabilities
|
119,292
|
|
|
121,797
|
|
|
111,994
|
|
|||
Total current liabilities
|
396,485
|
|
|
329,197
|
|
|
359,164
|
|
|||
Long-term liabilities:
|
|
|
|
|
|
|
|
|
|||
Deferred rent liabilities
|
57,653
|
|
|
61,128
|
|
|
66,201
|
|
|||
Other tax liabilities
|
3,211
|
|
|
7,344
|
|
|
10,132
|
|
|||
Other long-term liabilities
|
15,666
|
|
|
16,543
|
|
|
15,620
|
|
|||
Total liabilities
|
473,015
|
|
|
414,212
|
|
|
451,117
|
|
|||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
|||
STOCKHOLDERS’ EQUITY:
|
|
|
|
|
|
|
|
|
|||
Preferred stock, $1.00 par value, 1,000 shares authorized, 0 shares issued and outstanding
|
—
|
|
|
—
|
|
|
—
|
|
|||
Common stock, $0.10 par value, 100,000 shares authorized; 17,723, 17,764 and 18,565 issued; 17,680, 17,722 and 18,524 outstanding (shares in thousands)
|
1,772
|
|
|
1,776
|
|
|
1,857
|
|
|||
Additional paid-in capital
|
248,744
|
|
|
239,940
|
|
|
233,900
|
|
|||
Treasury stock, at cost (43, 42 and 41 shares, in thousands)
|
(2,312
|
)
|
|
(2,188
|
)
|
|
(2,063
|
)
|
|||
Deferred compensation
|
2,312
|
|
|
2,188
|
|
|
2,063
|
|
|||
Accumulated other comprehensive loss
|
(13,090
|
)
|
|
(20,341
|
)
|
|
(19,761
|
)
|
|||
Retained earnings
|
260,234
|
|
|
274,912
|
|
|
266,424
|
|
|||
Total stockholders’ equity
|
497,660
|
|
|
496,287
|
|
|
482,420
|
|
|||
Total liabilities and stockholders’ equity
|
$
|
970,675
|
|
|
$
|
910,499
|
|
|
$
|
933,537
|
|
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
July 29,
2017 |
|
July 30,
2016 |
|
July 29,
2017 |
|
July 30,
2016 |
||||||||
|
(In thousands, except earnings per share)
|
||||||||||||||
Net sales
|
$
|
373,601
|
|
|
$
|
371,416
|
|
|
$
|
810,277
|
|
|
$
|
790,767
|
|
Cost of sales (exclusive of depreciation and amortization)
|
245,196
|
|
|
247,545
|
|
|
511,281
|
|
|
501,545
|
|
||||
Gross profit
|
128,405
|
|
|
123,871
|
|
|
298,996
|
|
|
289,222
|
|
||||
Selling, general and administrative expenses
|
108,227
|
|
|
107,903
|
|
|
220,354
|
|
|
217,115
|
|
||||
Depreciation and amortization
|
15,979
|
|
|
15,891
|
|
|
31,671
|
|
|
32,352
|
|
||||
Asset impairment charges
|
974
|
|
|
2,826
|
|
|
1,458
|
|
|
2,826
|
|
||||
Other costs
|
6
|
|
|
191
|
|
|
10
|
|
|
259
|
|
||||
Operating income (loss)
|
3,219
|
|
|
(2,940
|
)
|
|
45,503
|
|
|
36,670
|
|
||||
Interest expense
|
(745
|
)
|
|
(540
|
)
|
|
(1,254
|
)
|
|
(931
|
)
|
||||
Interest income
|
454
|
|
|
364
|
|
|
925
|
|
|
681
|
|
||||
Income (loss) before provision for income taxes
|
2,928
|
|
|
(3,116
|
)
|
|
45,174
|
|
|
36,420
|
|
||||
Provision (benefit) for income taxes
|
(11,362
|
)
|
|
(1,105
|
)
|
|
(5,345
|
)
|
|
12,446
|
|
||||
Net income (loss)
|
$
|
14,290
|
|
|
$
|
(2,011
|
)
|
|
$
|
50,519
|
|
|
$
|
23,974
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per common share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.81
|
|
|
$
|
(0.11
|
)
|
|
$
|
2.86
|
|
|
$
|
1.26
|
|
Diluted
|
$
|
0.79
|
|
|
$
|
(0.11
|
)
|
|
$
|
2.76
|
|
|
$
|
1.24
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
17,704
|
|
|
18,811
|
|
|
17,659
|
|
|
19,006
|
|
||||
Diluted
|
18,177
|
|
|
18,811
|
|
|
18,289
|
|
|
19,357
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared and paid per common share
|
$
|
0.40
|
|
|
$
|
0.20
|
|
|
$
|
0.80
|
|
|
$
|
0.40
|
|
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
July 29, 2017
|
|
July 30, 2016
|
|
July 29, 2017
|
|
July 30, 2016
|
||||||||
|
(In thousands)
|
||||||||||||||
Net income (loss)
|
$
|
14,290
|
|
|
$
|
(2,011
|
)
|
|
$
|
50,519
|
|
|
$
|
23,974
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
12,238
|
|
|
(4,114
|
)
|
|
7,321
|
|
|
7,589
|
|
||||
Change in fair value of cash flow hedges, net of income taxes
|
34
|
|
|
(44
|
)
|
|
(70
|
)
|
|
135
|
|
||||
Total comprehensive income (loss)
|
$
|
26,562
|
|
|
$
|
(6,169
|
)
|
|
$
|
57,770
|
|
|
$
|
31,698
|
|
|
Twenty-six Weeks Ended
|
||||||
|
July 29,
2017 |
|
July 30,
2016 |
||||
|
(In thousands)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
||
Net income
|
$
|
50,519
|
|
|
$
|
23,974
|
|
Reconciliation of net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
31,671
|
|
|
32,352
|
|
||
Stock-based compensation
|
14,480
|
|
|
12,631
|
|
||
Excess tax benefits from stock-based compensation
|
—
|
|
|
(1,470
|
)
|
||
Deferred taxes
|
934
|
|
|
(10,468
|
)
|
||
Asset impairment charges
|
1,458
|
|
|
2,826
|
|
||
Deferred rent expense and lease incentives
|
(5,160
|
)
|
|
(5,458
|
)
|
||
Other
|
(19
|
)
|
|
532
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Inventories
|
(22,882
|
)
|
|
(25,972
|
)
|
||
Accounts receivable and other assets
|
(3,208
|
)
|
|
(6,123
|
)
|
||
Income taxes payable, net of prepayments
|
(28,534
|
)
|
|
18,399
|
|
||
Accounts payable and other current liabilities
|
35,827
|
|
|
32,670
|
|
||
Deferred rent and other liabilities
|
(3,637
|
)
|
|
1,290
|
|
||
Net cash provided by operating activities
|
71,449
|
|
|
75,183
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
||
Capital expenditures
|
(23,156
|
)
|
|
(16,036
|
)
|
||
Purchase of short-term investments
|
(55,800
|
)
|
|
(75,100
|
)
|
||
Proceeds from sale of short-term investments
|
49,300
|
|
|
40,100
|
|
||
Change in company-owned life insurance policies
|
(518
|
)
|
|
(151
|
)
|
||
Net cash used in investing activities
|
(30,174
|
)
|
|
(51,187
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
||
Repurchase of common stock, including shares surrendered for tax withholdings and transaction costs
|
(57,380
|
)
|
|
(84,693
|
)
|
||
Payment of dividends
|
(14,091
|
)
|
|
(7,556
|
)
|
||
Borrowings under revolving loan
|
340,052
|
|
|
279,815
|
|
||
Repayments under revolving loan
|
(300,932
|
)
|
|
(235,955
|
)
|
||
Exercise of stock options
|
—
|
|
|
438
|
|
||
Excess tax benefits from stock-based compensation
|
—
|
|
|
1,470
|
|
||
Net cash used in financing activities
|
(32,351
|
)
|
|
(46,481
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(301
|
)
|
|
5,780
|
|
||
Net increase (decrease) in cash and cash equivalents
|
8,623
|
|
|
(16,705
|
)
|
||
Cash and cash equivalents, beginning of period
|
193,709
|
|
|
187,534
|
|
||
Cash and cash equivalents, end of period
|
$
|
202,332
|
|
|
$
|
170,829
|
|
|
Twenty-six Weeks Ended
|
||||||
|
July 29,
2017 |
|
July 30,
2016 |
||||
|
(In thousands)
|
||||||
OTHER CASH FLOW INFORMATION:
|
|
|
|
|
|
||
Net cash paid during the period for income taxes
|
$
|
25,988
|
|
|
$
|
3,632
|
|
Cash paid during the period for interest
|
1,118
|
|
|
794
|
|
||
Increase (decrease) in accrued purchases of property and equipment
|
(3,607
|
)
|
|
562
|
|
1.
|
BASIS OF PRESENTATION
|
•
|
Second Quarter 2017
— The thirteen weeks ended
July 29, 2017
|
•
|
Second Quarter 2016
— The thirteen weeks ended
July 30, 2016
|
•
|
Year-To-Date 2017
— The twenty-six weeks ended
July 29, 2017
|
•
|
Year-To-Date 2016
— The twenty-six weeks ended
July 30, 2016
|
•
|
FASB — Financial Accounting Standards Board
|
•
|
SEC — U.S. Securities and Exchange Commission
|
•
|
U.S. GAAP — Generally Accepted Accounting Principles in the United States
|
•
|
FASB ASC — FASB Accounting Standards Codification, which serves as the source for authoritative U.S. GAAP, except that rules and interpretive releases by the SEC are also sources of authoritative U.S. GAAP for SEC registrants
|
•
|
Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities
|
•
|
Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly
|
•
|
Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities
|
2.
|
STOCKHOLDERS’ EQUITY
|
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
|
July 29, 2017
|
|
July 30, 2016
|
||||||||||
|
|
Shares
|
|
Value
|
|
Shares
|
|
Value
|
||||||
|
|
(In thousands)
|
||||||||||||
Shares repurchases related to:
|
|
|
|
|
|
|
|
|
||||||
2015 Share Repurchase Program
|
|
—
|
|
|
—
|
|
|
310
|
|
|
$
|
20,726
|
|
|
2015 $250 Million Share Repurchase Program
(1) (2)
|
|
507
|
|
|
$
|
57,379
|
|
|
818
|
|
|
63,967
|
|
|
Shares acquired and held in treasury
|
|
1.2
|
|
|
$
|
124
|
|
|
2
|
|
|
$
|
124
|
|
(1)
|
Inclusive of 0.3 million shares for approximately $31.7 million withheld to cover taxes in conjunction with the vesting of stock awards.
|
(2)
|
Subsequent to
July 29, 2017
and through August 18, 2017, the Company repurchased approximately 44,000 shares for approximately $4.7 million.
|
3.
|
STOCK-BASED COMPENSATION
|
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
July 29,
2017 |
|
July 30,
2016 |
|
July 29,
2017 |
|
July 30,
2016 |
||||||||
|
(In thousands)
|
||||||||||||||
Deferred Awards
|
$
|
2,661
|
|
|
$
|
2,121
|
|
|
$
|
5,926
|
|
|
$
|
4,427
|
|
Performance Awards
|
4,160
|
|
|
3,966
|
|
|
8,554
|
|
|
8,204
|
|
||||
Total stock-based compensation expense
(1)
|
$
|
6,821
|
|
|
$
|
6,087
|
|
|
$
|
14,480
|
|
|
$
|
12,631
|
|
(1)
|
During the
Second Quarter 2017
and the
Second Quarter 2016
, approximately
$1.0 million
and
$0.9 million
, respectively, were included in cost of sales. During
Year-To-Date 2017
and
Year-To-Date 2016
, approximately
$2.0 million
and
$1.5 million
, respectively, were included in cost of sales. All other stock-based compensation is included in selling, general and administrative expenses.
|
|
Number of
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|||
|
(In thousands)
|
|
|
|||
Unvested Deferred Awards, beginning of period
|
469
|
|
|
$
|
61.19
|
|
Granted
|
191
|
|
|
110.81
|
|
|
Vested
|
(178
|
)
|
|
60.94
|
|
|
Forfeited
|
(30
|
)
|
|
74.15
|
|
|
Unvested Deferred Awards, end of period
|
452
|
|
|
$
|
81.39
|
|
|
Number of
Shares
(1)
|
|
Weighted
Average
Grant Date
Fair Value
|
|||
|
(In thousands)
|
|
|
|||
Unvested Performance Awards, beginning of period
|
515
|
|
|
$
|
68.11
|
|
Granted
|
161
|
|
|
114.40
|
|
|
Shares earned in excess of target
|
192
|
|
|
50.97
|
|
|
Vested shares, including shares vested in excess of target
|
(286
|
)
|
|
50.97
|
|
|
Forfeited
|
(27
|
)
|
|
81.66
|
|
|
Unvested Performance Awards, end of period
|
555
|
|
|
$
|
83.76
|
|
(1)
|
For those awards in which the performance period is complete, the number of unvested shares is based on actual shares that will vest upon completion of the service period.
|
4.
|
EARNINGS (LOSS) PER COMMON SHARE
|
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
July 29, 2017
|
|
July 30, 2016
|
|
July 29, 2017
|
|
July 30, 2016
|
||||||||
|
(In thousands)
|
||||||||||||||
Net income (loss)
|
$
|
14,290
|
|
|
$
|
(2,011
|
)
|
|
$
|
50,519
|
|
|
$
|
23,974
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares
|
17,704
|
|
|
18,811
|
|
|
17,659
|
|
|
19,006
|
|
||||
Dilutive effect of stock awards
|
473
|
|
|
—
|
|
|
630
|
|
|
351
|
|
||||
Diluted weighted average common shares
|
18,177
|
|
|
18,811
|
|
|
18,289
|
|
|
19,357
|
|
||||
Antidilutive stock awards
|
—
|
|
|
2
|
|
|
—
|
|
|
1
|
|
5.
|
PROPERTY AND EQUIPMENT
|
|
|
July 29, 2017
|
|
January 28, 2017
|
|
July 30, 2016
|
||||||
|
|
(In thousands)
|
||||||||||
Property and equipment:
|
|
|
|
|
|
|
|
|
|
|||
Land and land improvements
|
|
$
|
3,403
|
|
|
$
|
3,403
|
|
|
$
|
3,403
|
|
Building and improvements
|
|
35,548
|
|
|
35,548
|
|
|
35,548
|
|
|||
Material handling equipment
|
|
48,345
|
|
|
48,345
|
|
|
48,345
|
|
|||
Leasehold improvements
|
|
316,823
|
|
|
317,884
|
|
|
326,292
|
|
|||
Store fixtures and equipment
|
|
221,990
|
|
|
223,873
|
|
|
227,528
|
|
|||
Capitalized software
|
|
213,902
|
|
|
204,901
|
|
|
181,957
|
|
|||
Construction in progress
|
|
24,888
|
|
|
7,316
|
|
|
15,641
|
|
|||
|
|
864,899
|
|
|
841,270
|
|
|
838,714
|
|
|||
Accumulated depreciation and amortization
|
|
(601,588
|
)
|
|
(576,990
|
)
|
|
(561,519
|
)
|
|||
Property and equipment, net
|
|
$
|
263,311
|
|
|
$
|
264,280
|
|
|
$
|
277,195
|
|
(i)
|
the prime rate plus a margin of
0.50%
to
0.75%
based on the amount of the Company’s average excess availability under the facility; or
|
(ii)
|
the London InterBank Offered Rate, or “LIBOR”, for an interest period of
one, two, three or six
months, as selected by the Company, plus a margin of
1.25%
to
1.50%
based on the amount of the Company’s average excess availability under the facility.
|
|
July 29,
2017 |
|
January 28,
2017 |
|
July 30,
2016 |
||||||
|
(In millions)
|
||||||||||
Credit facility maximum
|
$
|
250.0
|
|
|
$
|
250.0
|
|
|
$
|
250.0
|
|
Borrowing base
|
250.0
|
|
|
223.8
|
|
|
249.2
|
|
|||
|
|
|
|
|
|
||||||
Outstanding borrowings
|
54.5
|
|
|
15.4
|
|
|
43.9
|
|
|||
Letters of credit outstanding—standby
|
7.0
|
|
|
7.3
|
|
|
7.9
|
|
|||
Utilization of credit facility at end of period
|
61.5
|
|
|
22.7
|
|
|
51.8
|
|
|||
|
|
|
|
|
|
||||||
Availability
(1)
|
$
|
188.5
|
|
|
$
|
201.1
|
|
|
$
|
197.4
|
|
|
|
|
|
|
|
||||||
Interest rate at end of period
|
2.7
|
%
|
|
2.8
|
%
|
|
2.0
|
%
|
|
Year-To-Date 2017
|
|
Fiscal
2016
|
|
Year-To-Date 2016
|
||||||
Average end of day loan balance during the period
|
$
|
62.9
|
|
|
$
|
39.9
|
|
|
$
|
39.3
|
|
Highest end of day loan balance during the period
|
98.2
|
|
|
95.8
|
|
|
75.1
|
|
|||
Average interest rate
|
2.7
|
%
|
|
2.4
|
%
|
|
2.4
|
%
|
(1)
|
The sublimit availability for the letters of credit was
$43.0 million
,
$42.7 million
, and
$42.1 million
at
July 29, 2017
,
January 28, 2017
, and
July 30, 2016
, respectively.
|
7.
|
LEGAL AND REGULATORY MATTERS
|
8.
|
INCOME TAXES
|
9.
|
DERIVATIVE INSTRUMENTS
|
10.
|
SEGMENT INFORMATION
|
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
July 29,
2017 |
|
July 30,
2016 |
|
July 29,
2017 |
|
July 30,
2016 |
||||||||
|
(In thousands)
|
||||||||||||||
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Children’s Place U.S.
|
$
|
327,375
|
|
|
$
|
319,189
|
|
|
$
|
722,138
|
|
|
$
|
694,296
|
|
The Children’s Place International
(1)
|
46,226
|
|
|
52,227
|
|
|
88,139
|
|
|
96,471
|
|
||||
Total net sales
|
$
|
373,601
|
|
|
$
|
371,416
|
|
|
$
|
810,277
|
|
|
$
|
790,767
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Children’s Place U.S.
|
$
|
(924
|
)
|
|
$
|
(8,617
|
)
|
|
$
|
37,816
|
|
|
$
|
25,537
|
|
The Children’s Place International
|
4,143
|
|
|
5,677
|
|
|
7,687
|
|
|
11,133
|
|
||||
Total operating income (loss)
(2)
|
$
|
3,219
|
|
|
$
|
(2,940
|
)
|
|
$
|
45,503
|
|
|
$
|
36,670
|
|
Operating income (loss) as a percent of net sales:
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Children’s Place U.S.
|
(0.3
|
)%
|
|
(2.7
|
)%
|
|
5.2
|
%
|
|
3.7
|
%
|
||||
The Children’s Place International
|
9.0
|
%
|
|
10.9
|
%
|
|
8.7
|
%
|
|
11.5
|
%
|
||||
Total operating income (loss)
|
0.9
|
%
|
|
(0.8
|
)%
|
|
5.6
|
%
|
|
4.6
|
%
|
||||
Depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Children’s Place U.S.
|
$
|
14,271
|
|
|
$
|
14,889
|
|
|
$
|
28,234
|
|
|
$
|
29,532
|
|
The Children’s Place International
|
1,708
|
|
|
1,002
|
|
|
3,437
|
|
|
2,820
|
|
||||
Total depreciation and amortization
|
$
|
15,979
|
|
|
$
|
15,891
|
|
|
$
|
31,671
|
|
|
$
|
32,352
|
|
Capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Children’s Place U.S.
|
$
|
9,776
|
|
|
$
|
8,025
|
|
|
$
|
22,876
|
|
|
$
|
14,829
|
|
The Children’s Place International
|
88
|
|
|
927
|
|
|
280
|
|
|
1,207
|
|
||||
Total capital expenditures
|
$
|
9,864
|
|
|
$
|
8,952
|
|
|
$
|
23,156
|
|
|
$
|
16,036
|
|
(1)
|
Net sales from The Children's Place International are primarily derived from revenues from Canadian operations.
|
(2)
|
Includes costs incurred related to asset impairment charges, costs related to foreign exchange control penalties and a sales and use tax audit settlement, and costs arising out of the restructuring of certain store and corporate operations totaling approximately $1.9 million for the Second Quarter 2017.
|
|
July 29, 2017
|
|
January 28, 2017
|
|
July 30, 2016
|
||||||
Total assets:
|
(In thousands)
|
||||||||||
The Children’s Place U.S.
|
$
|
786,038
|
|
|
$
|
735,953
|
|
|
$
|
768,831
|
|
The Children’s Place International
|
184,637
|
|
|
174,546
|
|
|
164,706
|
|
|||
Total assets
|
$
|
970,675
|
|
|
$
|
910,499
|
|
|
$
|
933,537
|
|
11.
|
SUBSEQUENT EVENTS
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Second Quarter 2017
— The thirteen weeks ended
July 29, 2017
|
•
|
Second Quarter 2016
— The thirteen weeks ended
July 30, 2016
|
•
|
Year-To-Date 2017
— The twenty-six weeks ended
July 29, 2017
|
•
|
Year-To-Date 2016
— The twenty-six weeks ended
July 30, 2016
|
•
|
Comparable Retail Sales — Net sales, in constant currency, from stores that have been open for at least 14 consecutive months and from our e-commerce store, excluding postage and handling fees. Store closures in the current fiscal year will be excluded from Comparable Retail Sales beginning in the fiscal quarter in which the store closes. Stores that temporarily close for non- substantial remodeling will be excluded from Comparable Retail Sales for only the period that they were closed. A store is considered substantially remodeled if it has been relocated or materially changed in size and will be excluded from Comparable Retail Sales for at least 14 months beginning in the period in which the remodel occurred
|
•
|
AUR — Average unit retail
|
•
|
Gross Margin — Gross profit expressed as a percentage of net sales
|
•
|
SG&A — Selling, general, and administrative expenses
|
•
|
FASB — Financial Accounting Standards Board
|
•
|
SEC — U.S. Securities and Exchange Commission
|
•
|
U.S. GAAP — Generally Accepted Accounting Principles in the United States
|
•
|
FASB ASC — FASB Accounting Standards Codification, which
serves as the source for authoritative U.S. GAAP, except that rules and interpretive releases by the SEC are also sources of authoritative U.S. GAAP for SEC registrants
|
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||
|
July 29,
2017 |
|
July 30,
2016 |
|
July 29,
2017 |
|
July 30,
2016 |
Average Translation Rates
(1)
|
|
|
|
|
|
|
|
Canadian Dollar
|
0.7577
|
|
0.7717
|
|
0.7549
|
|
0.7627
|
Hong Kong Dollar
|
0.1283
|
|
0.1289
|
|
0.1285
|
|
0.1288
|
China Yuan Renminbi
|
0.1465
|
|
0.1516
|
|
0.1459
|
|
0.1526
|
(1)
|
The average translation rates are the average of the monthly translation rates used during each period to translate the respective income statements. The rates represent the U.S. dollar equivalent of a unit of each foreign currency.
|
•
|
Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities
|
•
|
Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly
|
•
|
Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities
|
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||
|
July 29,
2017 |
|
July 30,
2016 |
|
July 29,
2017 |
|
July 30,
2016 |
||||
Net sales
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of sales (exclusive of depreciation and amortization)
|
65.6
|
|
|
66.6
|
|
|
63.1
|
|
|
63.4
|
|
Gross profit
|
34.4
|
|
|
33.4
|
|
|
36.9
|
|
|
36.6
|
|
Selling, general and administrative expenses
|
29.0
|
|
|
29.1
|
|
|
27.2
|
|
|
27.5
|
|
Depreciation and amortization
|
4.3
|
|
|
4.3
|
|
|
3.9
|
|
|
4.1
|
|
Asset impairment charge
|
0.3
|
|
|
0.8
|
|
|
0.2
|
|
|
0.4
|
|
Operating income (loss)
|
0.9
|
|
|
(0.8
|
)
|
|
5.6
|
|
|
4.6
|
|
Income (loss) before income taxes
|
0.8
|
|
|
(0.8
|
)
|
|
5.6
|
|
|
4.6
|
|
Provision (benefit) for income taxes
|
(3.0
|
)
|
|
(0.3
|
)
|
|
(0.7
|
)
|
|
1.6
|
|
Net income (loss)
|
3.8
|
%
|
|
(0.5
|
)%
|
|
6.2
|
%
|
|
3.0
|
%
|
Number of Company-operated stores, end of period
|
1,026
|
|
|
1,064
|
|
|
1,026
|
|
|
1,064
|
|
|
Thirteen Weeks Ended
|
|
Twenty-six Weeks Ended
|
||||||||||||
|
July 29,
2017 |
|
July 30,
2016 |
|
July 29,
2017 |
|
July 30,
2016 |
||||||||
Net sales:
|
(In thousands)
|
|
|
|
|
|
|
||||||||
The Children’s Place U.S.
|
$
|
327,375
|
|
|
$
|
319,189
|
|
|
$
|
722,138
|
|
|
$
|
694,296
|
|
The Children’s Place International
|
46,226
|
|
|
52,227
|
|
|
88,139
|
|
|
96,471
|
|
||||
Total net sales
|
$
|
373,601
|
|
|
$
|
371,416
|
|
|
$
|
810,277
|
|
|
$
|
790,767
|
|
(i)
|
the prime rate plus a margin of
0.50%
to
0.75%
based on the amount of our average excess availability under the facility; or
|
(ii)
|
the London InterBank Offered Rate, or “LIBOR”, for an interest period of
one, two, three or six
months, as selected by us, plus a margin of
1.25%
to
1.50%
based on the amount of our average excess availability under the facility.
|
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
|
Item 4.
|
CONTROLS AND PROCEDURES.
|
Item 1.
|
LEGAL PROCEEDINGS.
|
Item 1A.
|
RISK FACTORS.
|
Item 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
|
Period
|
|
Total Number of
Shares Purchased
|
|
Average
Price Paid
per Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
|
Approximate Dollar
Value (in thousands) of
Shares that May Yet
Be Purchased Under
the Plans or Programs
|
||||||
4/30/17-5/27/17
(1)
|
|
191,628
|
|
|
$
|
117.84
|
|
|
191,096
|
|
|
$
|
307,637
|
|
5/28/17-7/1/17
(2)
|
|
18,371
|
|
|
108.16
|
|
|
18,371
|
|
|
305,650
|
|
||
7/2/17-7/29/17
(3)
|
|
293
|
|
|
107.09
|
|
|
293
|
|
|
305,619
|
|
||
Total
|
|
210,292
|
|
|
$
|
116.98
|
|
|
209,760
|
|
|
$
|
305,619
|
|
(1)
|
Consists of 532 shares acquired as treasury stock as directed by participants in the Company's deferred compensation plan and 191,096 shares withheld to cover taxes in conjunction with the vesting of stock awards.
|
(2)
|
Consists of 18,371 shares withheld to cover taxes in conjunction with the vesting of stock awards.
|
(3)
|
Consists of 293 shares withheld to cover taxes in conjunction with the vesting of stock awards.
|
Item 6.
|
Exhibits.
|
|
|
|
10.1
(+)
|
|
Letter Agreement dated May 24, 2017 between The Children's Place Services Company, LLC and John Sullivan.
|
|
|
|
31.1
(+)
|
|
Certificate of Principal Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002.
|
|
|
|
31.2
(+)
|
|
Certificate of Principal Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002.
|
|
|
|
32
(+)
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
101.INS*
|
|
XBRL Instance Document.
|
|
|
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema.
|
|
|
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase.
|
|
|
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase.
|
|
|
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase.
|
|
|
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase.
|
*
|
Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability.
|
|
|
THE CHILDREN’S PLACE, INC.
|
|
|
|
|
|
|
|
|
|
Date:
|
August 22, 2017
|
By:
|
/S/ JANE T. ELFERS
|
|
|
|
JANE T. ELFERS
|
|
|
|
Chief Executive Officer and President
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
Date:
|
August 22, 2017
|
By:
|
/S/ ANURUP PRUTHI
|
|
|
|
ANURUP PRUTHI
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Accounting and Financial Officer)
|
|
|
|
|
1 Year Childrens Place Chart |
1 Month Childrens Place Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions