US retailer The Children's Place Q1 FY21 sales jump 71% of $435 mn

The Children’s Place, the largest pure-play children’s specialty apparel retailer, has reported 70.6 per cent sales growth to $435.5 million in its first quarter (Q1) of FY21 ended on May 1, 2021, compared to sales of $255.2 million in the corresponding quarter of previous fiscal. The company’s net income rose to $45.2 million (Q1 FY20: loss $114.8 million).

 

The Children's Place, the largest pure-play children's specialty apparel retailer, has reported 70.6 per cent sales growth to $435.5 million in its first quarter (Q1) of FY21 ended on May 1, 2021, compared to sales of $255.2 million in the corresponding quarter of previous fiscal. The company's net income rose to $45.2 million (Q1 FY20: loss $114.8 million).#

“All key metrics across both our digital and stores channels exceeded expectations. Our top line results were driven by several factors, including double digit increases in AUR versus Q1 2020, resulting from strong product acceptance, higher price realisation, reduced promotional activity, and unprecedented stimulus, as well as an acceleration in back-to-school sales, our ability to retain new digital customers we acquired during the pandemic, and a significant reactivation of store customers that we had temporarily lost during the government-mandated closure of all of our stores,” Jane Elfers, president and chief executive officer, said in a press release.

 

The Children's Place, the largest pure-play children's specialty apparel retailer, has reported 70.6 per cent sales growth to $435.5 million in its first quarter (Q1) of FY21 ended on May 1, 2021, compared to sales of $255.2 million in the corresponding quarter of previous fiscal. The company's net income rose to $45.2 million (Q1 FY20: loss $114.8 million).#

Gross profit for Q1 FY21 increased to $188.2 million (loss: $19.6 million), while selling, general and administrative expenses were $106.7 million ($98.5 million). The company’s operating income for the quarter improved to $65.9 million (loss: $173.1 million).

 

The Children's Place, the largest pure-play children's specialty apparel retailer, has reported 70.6 per cent sales growth to $435.5 million in its first quarter (Q1) of FY21 ended on May 1, 2021, compared to sales of $255.2 million in the corresponding quarter of previous fiscal. The company's net income rose to $45.2 million (Q1 FY20: loss $114.8 million).#

“The acceleration of our digital business, our highest operating margin channel, made possible by our pre-pandemic digital transformation investments, combined with the significant sales transfer rate we are achieving from our strategic decision to close 300, or a third, of our stores in less than 20 months, is resulting in an industry leading approximately 50 per cent steady state annual digital penetration,” Elfers added.

 

The Children's Place, the largest pure-play children's specialty apparel retailer, has reported 70.6 per cent sales growth to $435.5 million in its first quarter (Q1) of FY21 ended on May 1, 2021, compared to sales of $255.2 million in the corresponding quarter of previous fiscal. The company's net income rose to $45.2 million (Q1 FY20: loss $114.8 million).#

“Our long-standing strategic plan has served us well. We are a stronger company today than we were prior to the pandemic and we look forward to continuing to deliver accelerated operating margin expansion for our shareholders in 2021 and beyond,” Elfers concluded in the release.