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Children's Place Profits Drop

SECAUCUS, NJ–Same-store sales rise 4% for Children's Place and Disney Stores, but Disney magic can't prevent a $18.3 million net loss.

By Sean Ryan | Updated on August 19, 2005

SECAUCUS, NJ–The Children’s Place had a net loss of 66 cents per share for its second quarter of 2005, its first year of operations after acquiring the Disney Stores brand. The hit comes from a net loss of $18.3 million in the quarter, compared to a $9.9 million net loss last year. The company attributes much the loss to the expenses of acquiring Disney Stores.

Net sales for the second quarter were up 68% to $318.7 million from last years, mostly due to Disney Stores sales. Subtracting that, 2Q sales were $215.3 million for Children’s Place stores (up 14% from last year) and $103.4 million for Disney Stores.

Same-store sales for the quarter were up 4%, versus a 10% increase last year. During 2Q, 16 Children’s Place stores were opened, one was closed, and one Disney Stores unit was opened. The best-performing stores were in the West, Southwest and Southeast, said Hiten Patel, CFO of the company.

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