Drastic cut in Children’s Place Q2FY17 net loss

For the second fiscal quarter ended July 30, 2016, US based children’s specialty apparel retailer, The Children’s Place was able to drastically cut its net loss over the same quarter of the previous fiscal.

The company posted a net loss of $2.0 million, or $0.11 loss per diluted share, in the second quarter of fiscal 2017 as against net loss of $13.7 million, or $0.67 loss per diluted share in the prior fiscal’s second quarter.

Net sales in the reporting quarter grew 1.4 per cent year on year to $371.4 million, which included negative impact of approximately $1.7 million from currency exchange rate fluctuations.

On a constant currency basis, net sales were $373.1 million, up 1.8 per cent, while comparable retail sales rose 2.4 per cent in the quarter under review.

Gross profit rose higher at $123.9 million in the second quarter of fiscal 2017 compared to $115.0 million in the second quarter of fiscal 2016.

CEO Jane Elfers said, “Based on these results and the consistently positive customer response to our merchandise assortments, we are raising our guidance for the full fiscal.”

“We continue to demonstrate our ability to deliver on our multi-pronged transformation strategy, despite the challenging retail environment and the continued weakness in store traffic,” she added.