The Children’s Place Retail Stores Inc. (NASDAQ:PLCE) said Thursday that it widened its second-quarter loss, though it trumped Wall Street’s earnings view and announced a $100 million stock repurchase program, causing shares to trade up more than 8%.
The largest North American pure-play children’s specialty apparel retailer posted a net loss of $8.2 million, or 30 cents a share, compared with a loss of $7 million, or 24 cents a share, in the same quarter last year, and slightly ahead of average analyst estimates of a 34-cent loss, according to a Thomson Reuters poll.
Revenue for the Secaucus, New Jersey-based company was $345.3 million, up 9.4% from $315.7 million in the same quarter last year, and beating the Street’s view of $336.8 million.
“We posted solid results for the second quarter, narrowing our seasonal operating loss through a combination of top line growth and disciplined expense management,” The Children’s Place CEO Jane Elfers said, adding the company continues to make “substantial progress” in its longer-term growth initiatives.
“While the economic environment remains uncertain, we are focused on driving improved sales and profitability in our business for the long term,” she said.
The company also announced Thursday that its board of directors authorized a $100 million stock repurchase program to take place over the next 12 months.
Given the positive results the company drastically improved its full year earnings guide, now expecting a range of $3.08 to $3.15, from its previous prediction of $1.38 to $1.43.