It was just last month when I warned that investors at Children's Place
Children's Place announced March sales results yesterday that seem to indicate parents continue to flock to its stores for their little ones. Comps were up 7% for the month after gaining 11% last year. Its Disney
Despite the seemingly decent growth, the company expects little change from last year's first-quarter earnings of $0.52 per share. If that's the case, Children's Place would fall well short of analysts' guesses, which expect the company to improve earnings to $0.63 per share. Despite the expectations of a flat quarter, the company stood by its full-year projections that it will earn between $3.63 and $3.73 per share. It will have to come in at the very top of its guidance if it hopes to avoid further disappointing the Street. Analysts are expecting earnings of $3.72 per share for the year. And, let's not forget, its results could still be impacted by expenses resulting from its ongoing stock option investigation.
While this projected first-quarter miss is certainly not what current shareholders wanted to hear, it may be exactly what those looking to acquire the stock were waiting to hear. The stock has been heading down since the news came out and is beginning to look like a bargain. Its trailing P/E of 17.2 compares favorably to competitor Gymboree
For more on what's happening in the world of kiddie retail, check out:
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