The Childrens Place Retail Stores (NASDAQ:PLCE)
Children’s Place Earnings and Technicals
On Tuesday morning before the market opened, The Children’s Place (PLCE) announced first quarter earnings that topped analyst expectations and sent shares surging in the premarket session. The company announced $1.32 adjusted earnings per share on $419.4 million in sales while analysts were looking for $418 million in sales. This was way better than the company’s own projections of just $1 to $1.06 earnings per share. PLCE is still in the process of cutting costs and closing stores and in this last quarter the company closed five locations leaving it with a total of 1,064 stores. Currently analysts have an average price target of $80.38.
Looking at the chart you will see that shares caught a solid bid in the premarket with prices reaching highs of $74.98 after closing Monday at $68.23, a 9.8% jump in prices. We should see some resistance come in at $75.25 followed by $76 while support should be met at $74.23 and $72. Shares have been beaten down that past couple months and are due for a relief rally, however, usually after a gap up like this we will see some selling due to profit takers and short sellers anticipating the move so keep your eye on that if you’re looking to trade it. Would like to see shares hold $72 and get some consolidation in before moving further up. Looking further back on the chart you will see that shares have been slowly grinding their way higher and as of now shares are trading well above their 200-day moving average that is currently sitting at $62.87.
CEO Comments
Jane Elfers, President and Chief Executive Officer, commented, “The continuation of the quarterly dividend is a further reflection of our confidence in our ability to execute on our strategic initiatives and our continuing commitment to return excess capital to shareholders. The Children’s Place has a profitable business model which generates strong cash flow. Since 2009, we have returned over $671 million to shareholders through dividends and share repurchases,” concluded Ms. Elfers.
PLCE Profile
The Children’s Place, Inc. (The Children’s Place) is a pure-play children’s specialty apparel retailer in North America. The Company sells apparel, accessories, footwear and other items for children in sizes 0 to 14. The Company operates through two segments: The Children’s Place U.S. and The Children’s Place International. The Children’s Place U.S. segment includes its United States and Puerto Rico-based stores and revenue from its United States wholesale partners.
The Children’s Place International segment includes its Canadian stores, revenue from the Company’s Canada wholesale partner, as well as revenue from international franchisees. The Company designs, contracts to manufacture and licenses to sell merchandise under brand names, such as The Children’s Place, Place and Baby Place. The Children’s Place has various departments and serves the wardrobe needs of girls and boys (sizes 4 to 14), baby girls and boys (sizes 12 months to 5T), and newborn (sizes 0 to 18 months).
By Sean V