The Children’s Place Q1 sales improve 70.6 percent

For its first quarter, The Children’s Place, Inc. said, net sales increased 180.3 million dollars or 70.6 percent to 435.5 million dollars compared to the three months ended May 2, 2020, driven by strong customer response to product assortment and the unprecedented level of stimulus payments from the recent government pandemic relief legislation. Comparable retail sales were 83 percent for the quarter.

Commenting on the results, Jane Elfers, president and chief executive officer said: “We delivered outstanding first quarter results with gross margin, operating margin, and EPS all at record levels. We leveraged a very difficult period in 2020 to accelerate our strategic transformation and we are now well positioned for accelerated operating margin expansion in 2021 and beyond.”

Q1 highlights of The Children’s Place

The company added that gross profit increased 207.9 million dollars to 188.2 million dollars compared to a gross loss of 19.7 million dollars in the first quarter of 2020. Adjusted gross profit increased 143.9 million dollars to 189.2 million dollars compared to 45.3 million dollars in the comparable period last year.

Operating income increased 239.1 million dollars to 65.9 million dollars compared to an operating loss of 173.1 million dollars in the three months ended May 2, 2020. Operating margin improved to 15.1 percent compared to negative 67.8 percent in the prior year period. Adjusted operating income increased 135.7 million dollars to 70.7 million dollars compared to an adjusted operating loss of 64.9 million dollars in the comparable period last year.

Net income increased 160 million dollars to 45.2 million dollars or 3.01 dollars per diluted share compared to net loss of 114.8 million dollars or 7.86 dollars per diluted share, in the three months ended May 2, 2020. Adjusted net income increased 97.5 million dollars to 48.7 million dollars or 3.25 dollars per diluted share compared to an adjusted net loss of 48.7 million dollars or 3.33 dollars per diluted share, in the comparable period last year.