Children's Place Retail Stores Misses on the Top and Bottom Lines

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Children's Place Retail Stores (NAS: PLCE) reported earnings on March 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Children's Place Retail Stores missed estimates on revenue and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share dropped significantly.

Margins contracted across the board.

Revenue details
Children's Place Retail Stores logged revenue of $457.5 million. The 11 analysts polled by S&P Capital IQ hoped for sales of $477.9 million on the same basis. GAAP reported sales were 0.9% higher than the prior-year quarter's $453.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.87. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.93 per share on the same basis. GAAP EPS of $0.97 for Q4 were 20% lower than the prior-year quarter's $1.22 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.0%, 540 basis points worse than the prior-year quarter. Operating margin was 5.0%, 650 basis points worse than the prior-year quarter. Net margin was 5.3%, 180 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $456.7 million. On the bottom line, the average EPS estimate is $1.14.

Next year's average estimate for revenue is $1.86 billion. The average EPS estimate is $3.70.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 149 members out of 199 rating the stock outperform, and 50 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Children's Place Retail Stores a green thumbs-up, and 19 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Children's Place Retail Stores is outperform, with an average price target of $57.36.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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