Nov 15 (Reuters) - Children’s Place Retail Stores Inc cut its full-year adjusted profit forecast citing increased promotional activity after superstorm Sandy battered the U.S. northeast, from where the company draws almost a third of its revenue.
The kids’ clothing retailer said it now expects full-year adjusted profit of between $3.10 and $3.15 per share, down from its previous forecast of between $3.20 and $3.30 per share.
Chief Executive Jane Elfers said 280 of the company’s stores in the northeast and its e-commerce business were affected by Sandy. Children’s Place operated 1,102 stores, as of October.
The company, which competes with chains such as Target Corp and Gap Inc’s Old Navy, also expects fourth-quarter adjusted profit of between $1.01 and $1.06 per share, on low-single digit comparable retail sales.
Analysts on average were expecting adjusted profit of $1.24, according to Thomson Reuters I/B/E/S.
Third-quarter net income rose to $35.0 million, or $1.44 per share, from $33.7 million, or $1.33 per share, a year earlier.
On an adjusted basis, profit was in line with analysts’ estimates at $1.60 per share.
Revenue at the company, which mainly targets value-conscious mothers, rose 3 percent to $500.9 million, also in line with market estimates.