Children's Place Retail Stores Inc. (NASDAQ:PLCE) forecast a second-quarter loss, wider than Wall Street projections, after posting a 19 percent drop in first-quarter earnings.
The Secaucus, New Jersey-based pure-play children's specialty apparel retailer reported a 8 percent rise in cost of sales for the first quarter, in which it undertook several actions to reduce operating costs.
Adjusted earnings per share (EPS) was flat at $1.10, missing consensus estimate of $1.05. GAAP earnings fell to $23.59 million from $29.08 million.
Net sales fell 2 percent to $438.5 million, trailing analysts' projections of $446.99 million. Comparable retail sales went down 0.7 percent.
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Looking ahead for the second quarter, PLCE sees non-GAAP loss per share between $0.65 and $0.70, while analysts' expect a loss of 50 cents a share. The guidance assumes positive low-single digit comparable retail sales.
For the full year, the company now expects non-GAAP EPS in the range of $3.15 to $3.30 from prior expectations of $3.10 to $3.30. It forecasts positive low-single digit comparable retail sales. Analysts expect EPS of $3.23 for the year.
PLCE shares ended Wednesday's regular trading session at $44.53. The stock has been trading in the 52-week range between $36.96 and $57.55.