March 10 (Reuters) - Children's Place Retail Stores Inc (PLCE.O) posted a quarterly profit that was in line with market estimates as discounts helped boost sales during the holiday season.

Children's Place

The Secaucus, New Jersey-based company forecast first-quarter earnings from continuing operations of 85 cents to 90 cents a share.

Analysts on average were looking at earnings of 87 cents, before items, for the quarter, according to Thomson Reuters I/B/E/S.

For the fourth quarter ended Jan. 30, the company posted a profit of $34.1 million, or $1.23 a share, compared with $38.8 million, or $1.31 a share, a year earlier.

Excluding items, it earned $1.03 a share from continuing operations, in line with analysts' expectations.

The company, which competes with Gymboree Corp (GYMB.O) and Gap Inc's (GPS.N) Baby Gap line among others, had earlier reported fourth-quarter revenue of $462.8 million, an increase of 5 percent from a year ago.

Shares of Children's Place closed at $40.92 Tuesday 9 March on Nasdaq. (Reporting by Anne Pallivathuckal in Bangalore; Editing by Ratul Ray Chaudhuri)