The Children's Place Retail Stores, Inc. is a specialty apparel retailer serving the children's market, specifically ages newborn to 14 years old. The Children's Place currently owns and operates 906 stores, and also has an online sales presence.
The Children's Place recently exited their operations of the Disney Store business, which the company had operated since November 2004. The company believes their market share of children's apparel increased from 3.7% in FY2006 to 3.8% in FY2007, based on research from NPD.
The Children's Place was incorporated in June 1988, and designs, contracts to manufacture, and sells value-priced, high-quality children's clothing under their own brand name.
The Children's Place recently exited their operations of the Disney Store business, which they had operated since November 2004. This business consisted of all Disney Stores in the United States and Canada, certain Disney Outlet stores, and 2 flagship stores. Other flagship stores and stores located on Disney Properties were not part of the operations. On March 20, 2008, the Children's Place announced that it had decided to exit the Disney Store business. This business had been operated as a wholly owned subsidiary known as "Hoop"; the Hoop businesses (including Hoop Holdings, LLC, Hoop Retail Stores, LLC, and Hoop Canada Holdings Inc.) each filed Chapter 11 bankruptcy on March 26, 2008.
Although profit was up for FY2007 over FY2006, gross profit dropped. Net income dropped from $87.4M in FY2006 to a loss of $59.6M in FY2007, mostly due to asset impairment charges of $96M, including $80.3M in impairments due to the exit of the Disney store business..
During FY 2007, The Children's Place opened 54 stores, and closed 16. Plans for FY2008 include opening approximately 30 stores and remodeling of 17 stores.
Net sales for FY2007 were approximately $2.16B., an increase of $145M (7%) over FY2006. The Children's Place Internet business accounted for approximately 3.6% of sales in FY2007 . 4th quarter (seasonal) sales account for approximately 31% of annual net sales. Comparable store sales increased 2% in FY2007 as compared with 11% in FY2006.
The Disney Store and Children's Place net sales are segmented below for FY2006 and FY2007. .
Gross profit for FY2007 was approximately $798.5M, as compared with $828.4M in FY2006..
There are a number of competitors for the Children's Place. Given their regular presence in shopping malls, other mall-based competitors include GapKids, babyGap, and Old Navy (all divisions of The Gap) and Gymboree Stores, Crazy 8, and Janie and Jack (all divisions of GYMB, although Janie and Jack merchandise tends to be significantly more expensive; and babystyle. Mall-anchored department stores also provide competition; those providing value-priced merchandise, including Sears and J.C. Penney are strong competitors. Other department stores in the children's apparel market with competitive pricing include Target, Wal-Mart and Kohl's. The Children's Place new shoe-store in the store concept also faces competition with shoe retailers such as Payless and Stride Rite. Additionally, they also compete with other specialty stores, local boutiques, and other national chains.