* Second-quarter loss/share $0.62 vs est $0.66
* Second-quarter sales $360.8 mln vs est $353.3 mln
* Sees third-quarter adj earnings/share $1.53 to $1.58 vs
* Raises low end of full-year earnings/share view to $3.20
Aug 16 Children's Place Retail Stores Inc
reported a smaller-than-expected quarterly loss as
products aimed at older kids sold well in the back-to-school
season, and the company raised the low end of its full-year
The company's shares rose as much as 9 percent to $55.96 --
their highest this year -- in Thursday morning trade.
Children's Place, which sells apparel and accessories for
newborns to 10-year-olds, has been trying to cut expenses and
keep a tight leash on inventory to shore up its margins as it
discounts heavily to win budget-conscious shoppers.
The company sees gross margins expanding for the full year,
driven by lower costs and improved products for the
back-to-school and holiday seasons.
The kids clothes retailer now expects full-year adjusted
earnings of $3.20 to $3.30 per share, compared with its previous
forecast of $3.15 to $3.30.
Analysts on average were expecting earnings of $3.23 per
share, according to Thomson Reuters I/B/E/S.
The company said it pulled back on baby inventory and floor
space to focus on big kids merchandise, which drives sales in
the back-to-school season.
Second-quarter loss widened to $18.0 million, or 74 cents
per share, from $9.7 million, or 38 cents per share, a year
Excluding items, the company posted a loss of 62 cents per
Revenue rose 5 percent to $360.8 million, helped by better
sales in the United States and Canada as well as in its
Analysts on average had expected a loss of 66 cents per
share on revenue of $353.3 million, according to Thomson Reuters
For the third quarter, the company expects adjusted earnings
of $1.53 to $1.58 per share, with comparable-store sales rising
in the low-single digit range.
Analysts were expecting a profit of $1.63 cents per share.
Children's Place shares, which have risen about 24 percent
in the last 12 months, were up 6 percent at $54.73 on the