US retailer The Children's Place reports Q2 sales of $414 mn

The Children’s Place, a US-based largest pure-play children’s specialty apparel retailer, has posted 12.2 per cent sales growth to $413.8 million in second quarter (Q2) of FY21 ended on July 31, 2021, compared to sales of $368.9 million in the same period of previous fiscal. Net income increased to $24.0 million (Q2 FY20: loss $64.5 million).

 

The Children's Place, a US-based largest pure-play children's specialty apparel retailer, has posted 12.2 per cent sales growth to $413.8 million in second quarter (Q2) of FY21 ended on July 31, 2021, compared to sales of $368.9 million in the same period of previous fiscal. Net income increased to $24.0 million (Q2 FY20: loss $64.5 million).#

The company said its second quarter results were driven by strong customer response to its product assortment, a reset of pricing and promotional strategy driving significantly higher AUR and ADS, strong back-to-school sales driven by the anticipated return to in-person learning and the enhanced child tax credit payments starting in mid-July.

 

The Children's Place, a US-based largest pure-play children's specialty apparel retailer, has posted 12.2 per cent sales growth to $413.8 million in second quarter (Q2) of FY21 ended on July 31, 2021, compared to sales of $368.9 million in the same period of previous fiscal. Net income increased to $24.0 million (Q2 FY20: loss $64.5 million).#

Moreover, the American retailers’ Q2 sales were negatively impacted by permanent and temporary store closures and the impact of reduced operating hours in its mall stores, as mandated by the mall owners.

 

The Children's Place, a US-based largest pure-play children's specialty apparel retailer, has posted 12.2 per cent sales growth to $413.8 million in second quarter (Q2) of FY21 ended on July 31, 2021, compared to sales of $368.9 million in the same period of previous fiscal. Net income increased to $24.0 million (Q2 FY20: loss $64.5 million).#

During fiscal 2020, the company implemented on its major structural changes. The plan was to reduce the reliance on brick-and-mortar channel and target the mall-based, brick-and-mortar portfolio to represent less than 25 per cent of its revenue entering fiscal 2022. Based on those decisions, US retailer improved its online sales which represent 43 per cent of its total sales in Q2.

 

The Children's Place, a US-based largest pure-play children's specialty apparel retailer, has posted 12.2 per cent sales growth to $413.8 million in second quarter (Q2) of FY21 ended on July 31, 2021, compared to sales of $368.9 million in the same period of previous fiscal. Net income increased to $24.0 million (Q2 FY20: loss $64.5 million).#

“We delivered another outstanding quarter with gross margin, operating margin and EPS all at record levels. The significant structural changes we made to our business in 2020, including an accelerated fleet optimisation strategy to close 300 stores, or a third of our fleet, in less than 20 months, an occupancy cost reset of our remaining stores, optimisation of our e-commerce fulfillment costs, the introduction of Gymboree into our portfolio of brands, and a restructuring of our P&L to support our digital-first business model, combined with the accelerated digital investments we made pre-pandemic, continue to propel our results,” Jane Elfers, president and chief executive officer, said in a press release.

 

The Children's Place, a US-based largest pure-play children's specialty apparel retailer, has posted 12.2 per cent sales growth to $413.8 million in second quarter (Q2) of FY21 ended on July 31, 2021, compared to sales of $368.9 million in the same period of previous fiscal. Net income increased to $24.0 million (Q2 FY20: loss $64.5 million).#

“Our digital business continues to grow on both the top and bottom lines. Our digital sales represented 43 per cent of the total net sales for Q2 2021 versus 29 per cent in Q2 2019, with over 70 per cent of our digital business now coming through a mobile device. Our active mobile users are up double digits, on top of the significant growth we experienced last year. We continue to invest in marketing and technology to support this profitable growth, as we target an industry-leading steady state annual digital penetration of 50 per cent,” Elfers added.

 

The Children's Place, a US-based largest pure-play children's specialty apparel retailer, has posted 12.2 per cent sales growth to $413.8 million in second quarter (Q2) of FY21 ended on July 31, 2021, compared to sales of $368.9 million in the same period of previous fiscal. Net income increased to $24.0 million (Q2 FY20: loss $64.5 million).#

Gross profit increased $100.8 million to $167.9 million in the three-month period against FY20, while operating income escalated to $37.8 million (loss: $64.5 million).

 

The Children's Place, a US-based largest pure-play children's specialty apparel retailer, has posted 12.2 per cent sales growth to $413.8 million in second quarter (Q2) of FY21 ended on July 31, 2021, compared to sales of $368.9 million in the same period of previous fiscal. Net income increased to $24.0 million (Q2 FY20: loss $64.5 million).#

“We experienced a significant acceleration in back-to-school sales during the last two weeks of July, and the third quarter is off to an outstanding start. We continue to operate at a high level, while navigating the ever-changing Covid landscape. We remain firmly on offense and we look forward to continuing to deliver accelerated operating margin expansion for 2021 and beyond,” Elfers concluded in the release.