9/04/12

Q2 web sales skip ahead by 21% at The Children’s Place

Total and comparable sales also grew, but not as much.

Bill Briggs , Senior Editor

The Children's Place Retail Stores Inc. booked sales growth in the second quarter, led by the Internet.

For the quarter ended July 28, specialty apparel retailer The Children’s Place, No. 111 in the Internet Retailer Top 500 reported:

“Despite the continued difficult economic environment, we believe lower apparel costs in the back half coupled with strengthening conversion, transactions and average transaction value, will result in positive comp sales and operating margin expansion in fiscal 2012,” says Jane Elfers, president and CEO.

For the first six months:

The Children’s Place plans to consolidate into a single U.S. distribution center in Fort Payne, AL, in order to more effectively manage its inventory and optimize capacity, the retailer says. The Fort Payne facility is the company's newest and largest. Its Northeast distribution center in Dayton, NJ, will close Dec. 31.

Closing that distribution center is expected to save more than $4 million annually, the company says. The distribution center changes are expected to result in charges of approximately $5 million in the third quarter and $11 million in the fourth quarter of 2012.

Topics:

Children's Place, consolidated distribution, Dayton, NJ, Fort Payne, AL, Jane Elfers, online specialty apparel, Q2 2012 earnings, Q2 earnings, The Children's Place, Top 500, warehouse closing

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