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What: Shares of children's apparel retailer The Children's Place
So what: For the quarter, Children's Place's total sales climbed 7% from a year ago. The gain was thanks to 81 net new store openings since last year and a 0.9% gain in comparable-store sales. Expanding margins helped the bottom line grow even faster as earnings per share jumped from $1.14 to $1.33.
Both sales and profit topped Wall Street's estimates, which called for $1.27 in per-share profit on $469 million in sales.
Now what: As if that wasn't enough, the company also bumped up its full-year profit outlook to a range of $3.24 to $3.29, up from a range of $3.13 to $3.25. Analysts had been expecting $3.22 per share for the year. Driving the better-than-expected performance is higher profitability as gross margins have expanded through higher markups, "lower markdowns, and disciplined inventory management."
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Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.