Childrens Place (PLCE) has reported 39.42 percent jump in profit for the quarter ended Apr. 29, 2017. The company has earned $36.23 million, or $1.97 a share in the quarter, compared with $25.98 million, or $1.33 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $35.94 million, or $1.95 a share compared with $25.76 million or $1.32 a share, a year ago. 

Revenue during the quarter grew 4.13 percent to $436.68 million from $419.35 million in the previous year period. Gross margin for the quarter contracted 36 basis points over the previous year period to 39.07 percent. Total expenses were 90.32 percent of quarterly revenues, down from 90.55 percent for the same period last year. This has led to an improvement of 24 basis points in operating margin to 9.68 percent.

Operating income for the quarter was $42.28 million, compared with $39.61 million in the previous year period.

However, the adjusted operating income for the quarter stood at $48.40 million compared to $39.22 million in the prior year period. At the same time, adjusted operating margin improved 173 basis points in the quarter to 11.08 percent from 9.35 percent in the last year period.

Jane Elfers, president and chief executive officer, said, "We continued to deliver outstanding operating results in the first quarter. Comparable retail sales, operating margin and earnings per diluted share were significantly above both last year and the high end of our guidance range. Our first quarter comparable retail sales increased 6.1%, our highest Q1 comp in over a decade, on top of a positive 5.1% comp in the first quarter of 2016. We generated positive comps in both our brick and mortar and digital channels for the quarter and our traffic continued to improve sequentially compared to the fourth quarter. Our inventories are very well positioned heading into the second quarter at up only 2.8%. And, we repurchased $33 million in stock and paid $7 million in dividends in the quarter."

For financial year 2017, the company projects diluted earnings per share to be in the range of $7.10 to $7.20 on adjusted basis.

The company has spent $20.19 million cash to meet investing activities during the quarter as against cash outgo of $25.83 million in the last year period.

The company has spent $27.79 million cash to carry out financing activities during the quarter as against cash outgo of $23.94 million in the last year period.

Cash and cash equivalents stood at $175.63 million as on Apr. 29, 2017, up 0.47 percent or $0.83 million from $174.80 million on Apr. 30, 2016.

Debt moves up
Childrens Place has witnessed an increase in total debt over the last one year. It stood at $27.40 million as on Apr. 29, 2017, up 9.60 percent or $2.40 million from $25 million on Apr. 30, 2016. Interest coverage ratio deteriorated to 1,112.74 for the quarter from 535.27 for the same period last year.