QUOTE AND NEWS
Benzinga  May 26  Comment 
Analysts at Piper Jaffray downgraded Childrens Place Inc (NASDAQ: PLCE) from Overweight to Neutral. The price target for Childrens Place has been lowered from $76.00 to $72.00. Childrens Place shares have gained 42.43 percent over the past 52...
Benzinga  May 14  Comment 
Ryan Craver was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Retail Expert and Lamour Group Senior Vice President Ryan Craver talked about Childrens Place Inc (NASDAQ: PLCE) on...
Benzinga  May 7  Comment 
Analysts at Goldman Sachs upgraded Childrens Place Inc (NASDAQ: PLCE) from Sell to Neutral. The price target for Childrens Place has been raised from $49.00 to $64.00. Childrens Place shares have gained 46.05 percent over the past 52 weeks,...
Market Intelligence Center  Apr 14  Comment 
The patented option trade-picking algorithms behind MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered call trade on Childrens Place Retail Stores (PLCE) that includes 5.40% downside protection. Sell one contract...
Market Intelligence Center  Mar 16  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with Childrens Place Retail Stores (PLCE) that should provide a 4.29% return in just 95 days. Sell one Jun. '15 call at the $60.00 level for each...
Market Intelligence Center  Mar 13  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Childrens Place Retail Stores (PLCE). Look at the Jun. '15 $62.50 covered call for a net debit in the $59.08 area. This trade has...
Market Intelligence Center  Mar 10  Comment 
For a hedged play on Childrens Place Retail Stores (PLCE), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Jun. '15 $57.50 covered call for a net debit in the $53.73 area. That is also the break-even stock price for...
Market Intelligence Center  Feb 18  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Childrens Place Retail Stores (PLCE) could yield about 7.08% (21.35% annualized, for comparison purposes only) in 121 days. Pair a long position in the stock with the...




 
TOP CONTRIBUTORS

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[1], 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[2].

History

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.

Disney Stores / "Hoop"

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.

Financials

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.[3].

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.[4]

Net Sales

Net sales for FY2007 were approximately $2.16B.[5], an increase of $145M (7%) over FY2006. The Children's Place Internet business accounted for approximately 3.6% of sales in FY2007 [6]. 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. Children's Place Net Sales segmented[7].

Gross Profit

Gross profit for FY2007 was approximately $798.5M, as compared with $828.4M in FY2006.[8].

Competition

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.


References

  1. Children's Place FY2007 10-K, April 2, 2008
  2. Children's Place FY2007 10-K, pg. 30
  3. Children's Place FY2007 10-K, pg. 28
  4. Children's Place FY2007 10-K, pg 8
  5. Children's Place FY2007 10-K, pg. 28
  6. Children's Place 10-K FY2007, pg. 10
  7. Children's Place FY2007 10-K, pg. 110
  8. Children's Place FY2007 10-K, pg. 28

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