The Children’s Place, Inc. has recently announced its first quarter results for 2018. The data has unfortunately missed some of the market estimates which caused a sharp drop in its share performance.
According to the report, the cold weather affected the sales of the company. The company announced that it had a net income of $31.5 million during the quarter. This was a $1.78 on a per share basis. However, the data recorded can be considered a decline if to compare with the $36.2 million recorded last year.
“Our ability to sell seasonal product in the first quarter was severely hampered by the combination of a record number of winter storms and the unseasonably cold temperatures that persisted across our major markets. We generated comparable retail sales of negative (1.8%) in the first quarter vs. a positive 6.1% comp in the first quarter of 2017. ” President and Chief Executive Officer Jane Elfers told reports.
Furthermore, the Children’s Place Inc. indicated that the adjusted earnings for the quarter was at $33.20 million. This data excluded the items and recorded $1.87 per share as well.
“However, when the weather improved across the country in the 13th week of the quarter, our sales turned aggressively positive. The strong sales momentum has continued and quarter to date, we are currently running a positive 24% comp. We expect that this pent up demand for seasonal product will continue and enable us to deliver strong second quarter results.” Elfers added.
The data missed the market estimates of $2.21 per share during the period. Not only that, the company also reported a revenue decline of 0.1% to $436.31 million. It fell from last year’s data of $436.68 million of the same period.
The Children’s Place Capital Return Program
Furthermore, the company also announced that its Board of Directors has recently declared a quarterly dividend for the same quarter.
As mentioned, the Board declared a quarterly cash dividend of $0.50 per share during the period. This will be distributed to the company’s shareholders on June 29, 2018.
“The continuation of our quarterly dividend is a further reflection of our confidence in our ability to execute on our strategic initiatives and our continuing commitment to return excess capital to shareholders. The Children’s Place has a profitable business model which generates strong cash flow. Since 2009, we have repurchased approximately $1.03 billion of our common stock and since 2014, paid approximately $75 million in dividends.” Elfers expressed further.
Interested to see more? Follow HQBroker News now for more updated news from the global market. You can read more news articles about the consumer industry here! Join and enjoy our community only here in HQBroker.