The Children’s Place swings to profitability

Second quarter net sales at The Children’s Place decreased 25.9 million dollars or 7.5 percent to 319.7 million dollars driven by an anticipated decrease in ecommerce revenue to improve profitability. Comparable retail sales decreased 7.2 percent for the quarter.

However, net loss reduced to 32.1 million dollars or 2.51 dollars per diluted share, while adjusted net income shifted back to profitability after two years of losses during the second quarter, improving by 30.4 million dollars.

Commenting on the financial results, Muhammad Umair, the company’s president and interim CEO said: “During the second quarter we proactively made certain strategic and operational changes to improve the profitability of the business and provide a foundation for future growth and we were pleased with the results.”

For the first six month period, net sales decreased 79.7 million dollars or 11.9 percent to 587.5 million dollars.

Gross profit increased 20.3 million dollars to 204.5 million dollars and operating loss was 49.8 million dollars in the six months, while net loss was 69.9 million dollars or 5.50 dollars per diluted share.

The company closed three stores in the second quarter and ended the quarter with 515 stores.