Is The Children's Place
Overall net income jumped a whopping 32.6%, but inched up just 1.8% on a continuing-operations basis. In March, The Children's Place gave up on Mickey Mouse and returned its Disney Stores to Disney's
Net sales rose 12%, with a same-store sales increase of 5% for the quarter, beating rival Gymboree's
Balance-sheet inventory levels are still increasing, with a 12.2% year-over-year jump in inventory (although down 8.9% from last quarter). The Children's Place kept costs under control; its gross margin remained at 42% from last year, and selling, general, and administrative expenses were in line with its top-line growth, increasing roughly 11%.
The company cited strong customer response to its summer line of apparel, and same-store sales certainly reflect a jump in revenue. From what I've seen, The Children's Place has been running some great sales lately, with $3 shirts and skirts for girls. That's certainly a draw for consumers in today's tough economic environment. Competing on price with retailers such as Target
The Children's Place still has to demonstrate that its Disney Store sale was its first step back toward a magic kingdom of its own. Compared to last quarter's $58.5 million loss, though, The Children's Place has certainly made good progress.
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