Children's Place Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of children's apparel retailer The Children's Place (NAS: PLCE) trampolined up as much as 18% today after the company announced third-quarter results.

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."

Want to keep up to date on The Children's Place?Add it to your watchlist.

At the time this article was published Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributorMatt Koppenhefferhas no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting hisCAPS portfolio, or you can follow Matt on Twitter,@KoppTheFool, or onFacebook. The Fool'sdisclosure policyprefers dividends over a sharp stick in the eye.

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