SECAUCUS, N.J. (AP) — The Children's Place said Thursday that its first-quarter net income fell 29 percent from the year before, but its results still beat expectations. The company's shares rose nearly 10 percent in premarket trading.
The kids clothing retailer also announced a new deal with retailing company Grupo David to open franchised stores in Latin America and Caribbean. It plans to open up to 40 stores in the next few years, starting this fall.
The Children's Place said its net income fell to $15.3 million, or 68 cents per share, in the quarter ending May 3, compared with net income of $19.3 million, or 83 cents per share, in the same quarter a year ago. Revenue fell 3.1 percent to $410.1 million from $423.2 million.
Analysts expected earnings of 61 cents per share and revenue of $408.1 million, according to FactSet.
The company also tweaked its outlook for the full year and second quarter. It now expects adjusted earnings for the full year between $2.90 per share and $3.05 per share, compared with its previous guidance between $2.85 per share and $3.05 per share. Analysts expect earnings of $3.01 per share.
For the second quarter, it now expects a loss between 47 cents per share and 41 cents per share. Before, it expected a loss of 42 cents per share. Analysts expect a loss of 49 cents per share.
The company said its board approved a quarterly dividend of 13 cents per share to be paid on July 17 to shareholders of record as of June 27.
Based in Secaucus, New Jersey, The Children's Place Retail Stores Inc. owns more than 1,100 stores around the country.
Its shares rose 9.9 percent to $49.99 in trading before the market opened Thursday.