In its second-largest acquisition, Amazon buys the company for $970 million.
But total sales and same-store sales also decline in the third quarter.
Web sales boomed for The Children’s Place Inc. in the latest quarter.
Though the retailer won’t file its full report with the U.S. Securities and Exchange Commission until next week, The Children’s Place in its preliminary press release did report a 33% increase in online sales for the third quarter ended Oct. 30.
Based upon that percentage increase, Internet Retailer calculates:
- Web sales increased to $43.1 million from $32.4 million in the third quarter of 2009. The Children’s Place breaks out full e-commerce numbers in its quarterly filings.
- Total sales declined year over year 2.1% to $453.4 million from $463.2 million.
- Comparable-store sales declined 5.7%.
- Net income declined 17.2% to $31.3 million from $37.8 million in the third quarter of 2009.
“As we announced mid-October, third quarter sales and profits for The Children's Place were impacted by poorly performing fashion in the back-to-school line as well as unseasonably warm temperatures,” says CEO Jane Elfers. “While short-term market conditions remain challenging for our business, we are making significant progress on our longer-term growth initiatives which we believe will lead to enhanced sales and profitability in 2011 and beyond.”
Internet Retailer calculates the web accounted for 9.5% of total sales, compared with 7% in the prior year.
For the first three quarters:
- Internet Retailer calculates the web grew 28.5% to $106.1 million from $82.6 million in the first three quarters of 2009.
- Total sales increased 3.4% to $1.22 billion from $1.18 billion.
- Comparable-store sales declined 1.1%.
- Net income declined 6.1% to $50.9 million from $54.2 million in the first three quarters of 2009.
Internet Retailer calculates the web accounted for 8.7% of total sales, compared with 7% in the prior year. The Children’s Place is No. 123 in the Internet Retailer Top 500 Guide.