Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Nov. 02, 2013 | Dec. 03, 2013 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'CHILDRENS PLACE RETAIL STORES INC | ' |
Entity Central Index Key | '0001041859 | ' |
Current Fiscal Year End Date | '--02-01 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 2-Nov-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 22,272,972 |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $141,746 | $194,128 | $203,101 |
Short-term investments | 52,500 | 15,000 | 0 |
Accounts receivable | 26,267 | 18,490 | 25,948 |
Inventories | 337,172 | 266,976 | 296,398 |
Prepaid expenses and other current assets | 33,856 | 40,927 | 36,709 |
Deferred income taxes | 14,642 | 9,714 | 7,220 |
Total current assets | 606,183 | 545,235 | 569,376 |
Long-term assets: | ' | ' | ' |
Property and equipment, net | 318,021 | 330,101 | 335,953 |
Deferred income taxes | 46,522 | 43,678 | 49,523 |
Other assets | 3,991 | 4,396 | 4,159 |
Total assets | 974,717 | 923,410 | 959,011 |
Current liabilities: | ' | ' | ' |
Accounts payable | 117,554 | 87,461 | 99,342 |
Income taxes payable | 15,502 | 2,459 | 7,911 |
Accrued expenses and other current liabilities | 118,832 | 101,586 | 105,264 |
Total current liabilities | 251,888 | 191,506 | 212,517 |
Long-term liabilities: | ' | ' | ' |
Deferred rent liabilities | 90,438 | 92,598 | 95,454 |
Other tax liabilities | 7,420 | 7,864 | 9,076 |
Other long-term liabilities | 9,436 | 10,493 | 7,634 |
Total liabilities | 359,182 | 302,461 | 324,681 |
STOCKHOLDERS' EQUITY: | ' | ' | ' |
Preferred stock, $1.00 par value, 1,000 shares authorized, 0 shares issued and outstanding | 0 | 0 | 0 |
Common stock, $0.10 par value, 100,000 shares authorized; 22,321, 23,179 and 23,993 issued; 22,289, 23,155 and 23,970 outstanding | 2,232 | 2,318 | 2,399 |
Additional paid-in capital | 223,117 | 215,691 | 214,695 |
Treasury stock, at cost (32, 24, and 23 shares) | -1,513 | -1,119 | -1,057 |
Deferred compensation | 1,513 | 1,119 | 1,057 |
Accumulated other comprehensive income | 7,335 | 13,258 | 13,174 |
Retained earnings | 382,851 | 389,682 | 404,062 |
Total stockholders' equity | 615,535 | 620,949 | 634,330 |
Total liabilities and stockholders' equity | $974,717 | $923,410 | $959,011 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | 9 Months Ended | ||
Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 | |
Document Period End Date | 2-Nov-13 | ' | ' |
Common Stock, Par or Stated Value Per Share | $0.10 | $0.10 | $0.10 |
Common Stock, Shares Authorized | 100,000 | 100,000 | 100,000 |
Common Stock, Shares, Issued | 22,321,000 | 23,179,000 | 23,993,000 |
Common Stock, Shares, Outstanding | 22,289,000 | 23,155,000 | 23,970,000 |
Preferred Stock, Par or Stated Value Per Share | $1 | $1 | $1 |
Preferred Stock, Shares Authorized | 1,000 | 1,000 | 1,000 |
Preferred Stock, Shares Issued | 0 | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 | 0 |
Treasury Stock, Shares | 32,000 | 24,000 | 23,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Net sales | $492,680 | $500,928 | $1,298,292 | $1,300,262 |
Cost of sales | 290,919 | 291,395 | 807,081 | 797,379 |
Gross profit | 201,761 | 209,533 | 491,211 | 502,883 |
Selling, general and administrative expenses | 123,521 | 131,875 | 366,937 | 374,829 |
Asset impairment charges | 0 | 539 | 21,766 | 2,069 |
Business Exit Costs | 200 | 570 | -762 | 4,466 |
Depreciation and amortization | 16,473 | 23,023 | 48,890 | 57,723 |
Operating income (loss) | 61,567 | 53,526 | 54,380 | 63,796 |
Interest (expense), net | 82 | -23 | 142 | -104 |
Income (loss) from continuing operations before income taxes | 61,649 | 53,503 | 54,522 | 63,692 |
Provision (benefit) for income taxes | 19,910 | 16,198 | 17,147 | 19,577 |
Net income (loss) | $41,739 | $37,305 | $37,375 | $44,115 |
Basic earnings (loss) per share amounts | ' | ' | ' | ' |
Net income (loss) (in dollars per share) | $1.87 | $1.55 | $1.65 | $1.82 |
Basic weighted average common shares outstanding (in shares) | 22,337 | 24,086 | 22,632 | 24,290 |
Diluted earnings (loss) per share amounts | ' | ' | ' | ' |
Net income (loss) (in dollars per share) | $1.84 | $1.54 | $1.63 | $1.80 |
Diluted weighted average common shares outstanding (in shares) | 22,628 | 24,293 | 22,896 | 24,453 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Net income | $41,739 | $37,305 | $37,375 | $44,115 |
Foreign currency translation adjustment | -181 | 589 | -5,923 | 294 |
Comprehensive income | $41,558 | $37,894 | $31,452 | $44,409 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | $37,375 | $44,115 |
Reconciliation of income from continuing operations to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 48,890 | 57,723 |
Stock-based compensation | 16,491 | 10,406 |
Excess tax benefits from stock-based compensation | -74 | -91 |
Deferred taxes | -12,155 | -2,507 |
Impairment of Long-Lived Assets Held-for-use | 21,766 | 2,069 |
Deferred rent expense and lease incentives | -8,793 | -9,648 |
Other | 5,530 | 5,211 |
Changes in operating assets and liabilities: | ' | ' |
Inventories | -71,603 | -58,308 |
Prepaid expenses and other assets | -6,858 | -11,070 |
Income taxes payable, net of prepayments | 22,784 | 24,065 |
Accounts payable and other current liabilities | 42,796 | 71,334 |
Deferred rent and other liabilities | 3,028 | 10,175 |
Total adjustments | 61,802 | 99,359 |
Net cash provided by operating activities | 99,177 | 143,474 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Property and equipment purchases, lease acquisition and software costs | -57,158 | -71,380 |
Purchase of company-owned life insurance policies | 5 | -36 |
Net cash used in investing activities | -94,653 | -71,416 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Borrowings under revolving credit facilities | 120,537 | 96,040 |
Repayments under revolving credit facilities | -120,537 | -96,040 |
Purchase and retirement of common stock, including transaction costs | -54,846 | -47,730 |
Exercise of stock options | 1,414 | 2,184 |
Excess tax benefits from stock-based compensation | 74 | 91 |
Net cash provided by (used in) financing activities | -53,358 | -45,455 |
Effect of exchange rate changes on cash | -3,548 | -157 |
Net increase (decrease) in cash and cash equivalents | -52,382 | 26,446 |
Cash and cash equivalents, beginning of period | 194,128 | 176,655 |
Cash and cash equivalents, end of period | 141,746 | 203,101 |
OTHER CASH FLOW INFORMATION: | ' | ' |
Net cash paid during the year for income taxes | 6,368 | -1,908 |
Cash paid during the year for interest | 383 | 515 |
Payments for (Proceeds from) Productive Assets | 1,214 | 2,783 |
Purchase of short-term investments | ($37,500) | $0 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended | ||||||||||||
Nov. 02, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
BASIS OF PRESENTATION | ' | ||||||||||||
BASIS OF PRESENTATION | |||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. | |||||||||||||
In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of The Children’s Place Retail Stores, Inc. (the “Company”) as of November 2, 2013 and October 27, 2012 and the results of its consolidated operations and cash flows for the thirty-nine weeks ended November 2, 2013 and October 27, 2012. The consolidated financial position as of February 2, 2013 was derived from audited financial statements. Due to the seasonal nature of the Company’s business, the results of operations for the thirty-nine weeks ended November 2, 2013 and October 27, 2012 are not necessarily indicative of operating results for a full fiscal year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013. | |||||||||||||
Certain reclassifications have been made to prior period financial statements to conform to the current period presentation. | |||||||||||||
Terms that are commonly used in the Company’s notes to condensed consolidated financial statements are defined as follows: | |||||||||||||
• | Third Quarter 2013 — The thirteen weeks ended November 2, 2013. | ||||||||||||
• | Third Quarter 2012 — The thirteen weeks ended October 27, 2012. | ||||||||||||
• | Year-To-Date 2013 — The thirty-nine weeks ended November 2, 2013. | ||||||||||||
• | Year-To-Date 2012 — The thirty-nine weeks ended October 27, 2012. | ||||||||||||
• | FASB — Financial Accounting Standards Board. | ||||||||||||
• | SEC — U.S. Securities and Exchange Commission. | ||||||||||||
• | U.S. GAAP — Generally Accepted Accounting Principles in the United States. | ||||||||||||
• | FASB ASC — FASB Accounting Standards Codification, which serves as the source for authoritative U.S. GAAP, except that rules and interpretive releases by the SEC are also sources of authoritative U.S. GAAP for SEC registrants. | ||||||||||||
Changes in Accounting Principle | |||||||||||||
During the fourth quarter of fiscal 2012 the Company elected to change its method of accounting for inventories from the retail inventory method to an average cost method. In addition, the Company has elected to capitalize additional supply chain costs, which were previously expensed as incurred. The Company elected to make the changes because it believes they better reflect the value of its inventory as of the balance sheet dates, provide a better reflection of its periodic net income and improves comparability with its peers. In the Company's Annual Report on Form 10-K for the fiscal year ended February 2, 2013, it applied the changes in the method of accounting for inventory retrospectively to all prior periods presented within the consolidated financial statements. | |||||||||||||
Short-term Investments | |||||||||||||
Short-term investments consist of investments which the Company expects to convert into cash within one year, including time deposits, which have original maturities greater than 90 days. The Company classifies its investments in securities at the time of purchase as held-to-maturity and reevaluates such classifications on a quarterly basis. Held-to-maturity investments consist of securities that the Company has the intent and ability to retain until maturity. These securities are recorded at cost and adjusted for the amortization of premiums and discounts, which approximates fair value. Cash inflows and outflows related to the sale and purchase of investments are classified as investing activities in the Company's consolidated statements of cash flows. | |||||||||||||
Stock-based Compensation | |||||||||||||
The Company generally grants time vesting stock awards ("Deferred Awards") and performance-based stock awards ("Performance Awards") to employees at management levels. The Company also grants Deferred Awards to its non-employee directors. Deferred Awards are granted in the form of restricted stock units that require each recipient to complete a service period. Deferred Awards generally vest ratably over three years except for those granted to non-employee directors, which generally vest over one year. Performance Awards are granted in the form of restricted stock units which have performance criteria that must be achieved for the awards to vest in addition to a service period requirement. Each Performance Award has a defined number of shares that an employee can earn (“Target Shares”) and based on the performance level achieved, the number of shares earned can be anywhere from zero up to a maximum percentage of Target Shares, as defined in the award agreement, which generally has been 200%. Performance Awards have generally cliff vested after a three year service period, except those granted pursuant to a contract. The fair value of all awards issued prior to May 20, 2011 was based on the average of the high and low selling price of the Company’s common stock on the grant date. Effective with the adoption of the Company's 2011 Equity Incentive Plan, the fair value of all awards granted on or after May 20, 2011 is based on the closing price of the Company’s common stock on the grant date. Stock-based compensation expense is recognized ratably over the related service period reduced for estimated forfeitures of those awards not expected to vest due to employee turnover. Stock-based compensation expense, as it relates to Performance Awards, is also adjusted based on the Company's estimate of the percentage of the aggregate Target Shares expected to be earned. | |||||||||||||
Deferred Compensation Plan | |||||||||||||
The Company has a deferred compensation plan (the “Deferred Compensation Plan”), which is a nonqualified, unfunded plan, for eligible senior level employees. Under the plan, participants may elect to defer up to 80% of his or her base salary and/or up to 100% of his or her bonus to be earned for the year following the year in which the deferral election is made. The Deferred Compensation Plan also permits members of the Board of Directors to elect to defer payment of all or a portion of their retainer and other fees to be earned for the year following the year in which a deferral election is made. In addition, eligible employees and directors of the Company may also elect to defer payment of any shares of Company stock that is earned with respect to stock-based awards. Directors may elect to have all or a certain portion of their fees earned for their service on the Board invested in shares of the Company’s common stock. Such elections are irrevocable. The Company is not required to contribute to the Deferred Compensation Plan, but at its sole discretion, can make additional contributions on behalf of the participants. Deferred amounts are not subject to forfeiture and are deemed invested among investment funds offered under the Deferred Compensation Plan, as directed by each participant. Payments of deferred amounts (as adjusted for earnings and losses) are payable following separation from service or at a date or dates elected by the participant at the time the deferral is elected. Payments of deferred amounts are generally made in either a lump sum or in annual installments over a period not exceeding 15 years. All deferred amounts are payable in the form in which they were made except for board fees invested in shares of the Company's common stock, which will be settled in shares of Company common stock. Earlier distributions are not permitted except in the case of an unforeseen hardship. | |||||||||||||
The Company has established a rabbi trust that serves as an investment to shadow the Deferred Compensation Plan liability. The assets of the rabbi trust are general assets of the Company and as such, would be subject to the claims of creditors in the event of bankruptcy or insolvency. The investments of the rabbi trust consist of company-owned life insurance policies (“COLIs”) and Company common stock. The Deferred Compensation Plan liability, excluding Company common stock, is included in other long-term liabilities and changes in the balance, except those relating to payments, are recognized as compensation expense. The cash surrender values of the COLIs are included in other assets and related earnings and losses are recognized as investment income or loss, which is included in selling, general and administrative expenses. Company stock deferrals are included in the equity section of the Company’s consolidated balance sheet as treasury stock and as a deferred compensation liability. Deferred stock is recorded at fair market value at the time of deferral and any subsequent changes in fair market value are not recognized. | |||||||||||||
The Deferred Compensation Plan liability, excluding Company stock, at fair value, was approximately $0.3 million, $0.7 million, and $0.6 million at November 2, 2013, February 2, 2013 and October 27, 2012, respectively. The cash surrender value of the COLIs, at fair value, was approximately $0.7 million at each of November 2, 2013, February 2, 2013 and October 27, 2012. Company stock was $1.5 million, $1.1 million, and $1.1 million at November 2, 2013, February 2, 2013 and October 27, 2012, respectively. | |||||||||||||
Exit or Disposal Cost Obligations | |||||||||||||
In accordance with the “Exit or Disposal Cost Obligations” topic of the FASB ASC, the Company records its exit and disposal costs at fair value to terminate an operating lease or contract when termination occurs before the end of its term and without future economic benefit to the Company. In cases of employee termination benefits, the Company recognizes an obligation only when all of the following criteria are met: | |||||||||||||
• | management, having the authority to approve the action, commits to a plan of termination; | ||||||||||||
• | the plan identifies the number of employees to be terminated, their job classifications or functions and their locations, and the expected completion date; | ||||||||||||
• | the plan establishes the terms of the benefit arrangement, including the benefits that employees will receive upon termination (including but not limited to cash payments), in sufficient detail to enable employees to determine the type and amount of benefits they will receive if they are involuntarily terminated; and | ||||||||||||
• | actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. | ||||||||||||
During the first quarter of fiscal 2012, management approved a plan to exit its distribution center in Ontario, California (the "West Coast DC") and move the operations to its distribution center in Fort Payne, Alabama (the "Southeast DC"). The lease of the West Coast DC expires in March 2016 and the Company ceased using the facility in May 2012. During fiscal 2012, the Company recognized approximately $4.2 million of costs in exiting the West Coast DC, which primarily included lease termination costs (net of anticipated sublease income), asset disposal costs, and severance to affected employees. These costs are included in other costs in the accompanying condensed consolidated statements of operations. Remaining costs associated with the exit of the West Coast DC are not expected to be material. | |||||||||||||
In August 2012, management approved a plan to close the Company's distribution center in Dayton, New Jersey ("Northeast DC") and move the operations to its Southeast DC. The Company ceased operations in the Northeast DC during the fourth quarter of fiscal 2012. The lease of its Northeast DC expires in January 2021 and the Company ceased using the facility in May 2013. During fiscal 2012, the Company recognized approximately $6.8 million of costs in exiting the Northeast DC, which primarily included lease termination costs (net of anticipated sublease income), accelerated depreciation, and severance to affected employees. During the second quarter of 2013, the Company executed a sublet arrangement for this facility. As a result of higher than anticipated sublease income, the Company reduced the Northeast DC accrual by $1.5 million during Year-To-Date 2013. These costs are included in other costs in the accompanying condensed consolidated statements of operations. Remaining costs associated with the exit of the Northeast DC are not expected to be material. | |||||||||||||
At October 27, 2012, the Company had a remaining accrual of $2.3 million related to the West Coast DC and Northeast DC lease termination costs, of which $0.7 million was included in accrued expenses and other current liabilities and $1.6 million was included in other long-term liabilities. The following table provides details of the remaining accruals for the West Coast DC and Northeast DC as of November 2, 2013, of which approximately $1.7 million was included in accrued expenses and other current liabilities and approximately $2.0 million was included in other long-term liabilities (dollars in thousands): | |||||||||||||
Other Associated Costs | Lease Termination Costs | Total | |||||||||||
Balance at February 2, 2013 | $ | — | $ | 8,376 | $ | 8,376 | |||||||
Restructuring costs | 398 | (1,160 | ) | (762 | ) | ||||||||
Payments and reductions | (398 | ) | (3,547 | ) | (3,945 | ) | |||||||
Balance at November 2, 2013 | $ | — | $ | 3,669 | $ | 3,669 | |||||||
Retained Earnings | |||||||||||||
The Company is currently restricted from paying dividends in cash under its credit facility agreement (see Note 6). There are no other restrictions on the Company's retained earnings. | |||||||||||||
Fair Value Measurement and Financial Instruments | |||||||||||||
The “Fair Value Measurements and Disclosure” topic of the FASB ASC provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. | |||||||||||||
This topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: | |||||||||||||
• | Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities | ||||||||||||
• | Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly | ||||||||||||
• | Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities | ||||||||||||
The Company’s cash and cash equivalents, short-term investments, accounts receivable, accounts payable and credit facility are all short-term in nature. As such, their carrying amounts approximate fair value and fall within Level 1 of the fair value hierarchy. The underlying assets and liabilities of the Company’s Deferred Compensation Plan, excluding Company stock, fall within Level 1 of the fair value hierarchy. The Company stock that is included in the Deferred Compensation Plan is not subject to fair value measurement. | |||||||||||||
Recently Adopted Accounting Updates | |||||||||||||
In February 2013, the FASB issued guidance finalizing the reporting of amounts reclassified out of accumulated other comprehensive income. The new standard requires the registrant to disclose either in a single note or parenthetically on the face of the financial statements the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. The guidance is effective for annual reporting periods and interim periods within those years beginning after December 15, 2012. In the first quarter of 2013, the Company adopted the guidance and determined that there were no significant amounts reclassified in the period that would require enhanced disclosure. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended | ||||||||||||||
Nov. 02, 2013 | |||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||
STOCKHOLDERS' EQUITY | ' | ||||||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||||||
The Company's Board of Directors authorized the following share repurchase programs: (1) $100 million on March 3, 2011 (the “2011 Share Repurchase Program”); (2) $50 million on March 7, 2012 (the "2012 $50 million Share Repurchase Program"); and (3) $100 million on November 26, 2012 (the "2012 Share Repurchase Program"). The 2012 $50 million Share Repurchase Program and the 2011 Share Repurchase Program have been completed. At November 2, 2013, there was approximately $25.7 million remaining on the 2012 Share Repurchase Program. Under the 2012 Share Repurchase Program, the Company may repurchase shares in the open market at current market prices at the time of purchase or in privately negotiated transactions. The timing and actual number of shares repurchased under the program will depend on a variety of factors including price, corporate and regulatory requirements, and other market and business conditions. The Company may suspend or discontinue the program at any time, and may thereafter reinstitute purchases, all without prior announcement. | |||||||||||||||
Pursuant to restrictions imposed by the Company's insider trading policy during black-out periods, the Company withholds and retires shares of vesting stock awards in exchange for payments to satisfy the withholding tax requirements of certain recipients. The Company's payment of the withholding taxes in exchange for the shares constitutes a purchase of its common stock. The Company also acquires shares of its common stock in conjunction with liabilities owed under the Company's Deferred Compensation Plan, which are held in treasury. | |||||||||||||||
The following table summarizes the Company's share repurchases (in thousands): | |||||||||||||||
Thirty-nine Weeks Ended | |||||||||||||||
November 2, 2013 | October 27, 2012 | ||||||||||||||
Shares | Value | Shares | Value | ||||||||||||
Shares repurchases related to: | |||||||||||||||
2011 Share Repurchase Program | — | $ | — | 377.2 | $ | 19,245 | |||||||||
2012 $50 million Share Repurchase Program | — | — | 558 | 28,428 | |||||||||||
2012 Share Repurchase Program (1) | 1,097.10 | 54,714 | — | — | |||||||||||
Withholding taxes | 1.8 | 132 | 1 | 57 | |||||||||||
Shares acquired and held in treasury | 7.6 | $ | 394 | 14 | $ | 675 | |||||||||
-1 | Subsequent to November 2, 2013 and through December 3, 2013, the Company repurchased less than 0.1 million shares for approximately $1.0 million. | ||||||||||||||
In accordance with the “Equity” topic of the FASB ASC, the par value of the shares retired is charged against common stock and the remaining purchase price is allocated between additional paid-in capital and retained earnings. The portion charged against additional paid-in capital is done using a pro rata allocation based on total shares outstanding. Related to all shares retired during Year-To-Date 2013 and Year-To-Date 2012, approximately $44.2 million and $39.5 million, respectively, were charged to retained earnings. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||||
The following table summarizes the Company’s stock-based compensation expense (in thousands): | ||||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
November 2, | October 27, | November 2, | October 27, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Deferred Awards | $ | 3,243 | $ | 2,514 | $ | 10,085 | $ | 8,115 | ||||||||
Performance Awards | 2,298 | 935 | 6,406 | 2,291 | ||||||||||||
Total stock-based compensation expense (1) | $ | 5,541 | $ | 3,449 | $ | 16,491 | $ | 10,406 | ||||||||
____________________________________________ | ||||||||||||||||
-1 | During the Third Quarter 2013 and the Third Quarter 2012, approximately $0.3 million and $0.4 million, respectively, were included in cost of sales. During Year-To-Date 2013 and Year-To-Date 2012, approximately $1.9 million and $1.1 million, respectively, were included in cost of sales. All other stock-based compensation is included in selling, general & administrative expenses. | |||||||||||||||
The Company recognized a tax benefit related to stock-based compensation expense of approximately $6.5 million and $4.1 million for Year-To-Date 2013 and Year-To-Date 2012, respectively. | ||||||||||||||||
Awards Granted During Year-To-Date 2013 | ||||||||||||||||
The Company granted Deferred Awards and Performance Awards to various executives and members of our Board of Directors during Year-To-Date 2013. Awards were issued in connection with annual performance reviews, new hires and contractual obligations. Generally, the Deferred Awards have a three year vesting period with one third of the award vesting annually. Deferred Awards granted to the Board of Directors vest generally after one year. In general, the Performance Awards have three annual performance periods and one three-year cumulative performance period and, if earned, vest upon completion of the three year performance period. As required by her employment contract, the Performance Award granted to the Company's Chief Executive Officer and President, if earned, has a one year vest period. Depending on the final adjusted operating income for the Company's performance periods, the percentage of Target Shares earned can be 0% and range up to 200%. | ||||||||||||||||
Unfavorable weather conditions across the country resulted in the Company achieving revenues which were well below operating plan for the first quarter of 2013. As a result, prior to the end of the first quarter of 2013, the Board of Directors chose to revise the operating plan for the 2013 fiscal year. The Board revised the plan in a manner which will require management to reverse the first quarter trends and to achieve results for the remainder of fiscal 2013 which exceed the results attained during the comparable period in fiscal 2012. Following the Board action, the Compensation Committee revised the performance target (and related threshold and maximum) for purposes of the Company's Performance Awards granted during the first quarter of 2013 to bring them in line with the revised operating plan. However, in order to take into account the first quarter of 2013 results, the revised threshold, target and maximum levels were set such that achievement of the revised performance target for fiscal 2013 will result in less than the number of Target Shares being earned. The revisions to Performance Award targets resulted in an increase to stock-based compensation expense of $1.7 million for the Company's Year-To-Date 2013. | ||||||||||||||||
Changes in the Company’s Unvested Stock Awards during Year-To-Date 2013 | ||||||||||||||||
Deferred Awards | ||||||||||||||||
Number of | Weighted | |||||||||||||||
Shares | Average | |||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
(in thousands) | ||||||||||||||||
Unvested Deferred Awards, beginning of period | 560 | $ | 49.53 | |||||||||||||
Granted | 372 | 48.61 | ||||||||||||||
Vested | (191 | ) | 49.46 | |||||||||||||
Forfeited | (47 | ) | 48.93 | |||||||||||||
Unvested Deferred Awards, end of period | 694 | $ | 49.1 | |||||||||||||
Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $24.1 million as of November 2, 2013, which will be recognized over a weighted average period of approximately 2.5 years. | ||||||||||||||||
Performance Awards | ||||||||||||||||
Number of | Weighted | |||||||||||||||
Shares (1) | Average | |||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
(in thousands) | ||||||||||||||||
Unvested Performance Awards, beginning of period | 172 | $ | 48.59 | |||||||||||||
Granted | 204 | 47.89 | ||||||||||||||
Vested | (2 | ) | 46.48 | |||||||||||||
Forfeited | (10 | ) | 47.25 | |||||||||||||
Unvested Performance Awards, end of period | 364 | $ | 48.25 | |||||||||||||
____________________________________________ | ||||||||||||||||
-1 | For those awards in which the performance period is complete, the number of unvested shares is based on actual shares that will vest upon completion of the service period. For those awards in which the performance period is not yet complete, the number of unvested shares is based on the participants earning their Target Shares at 100%. | |||||||||||||||
For those awards in which the performance period is not yet complete, the cumulative expense recognized reflects changes in operating income estimates as they occur. Total unrecognized stock-based compensation expense related to unvested Performance Awards approximated $7.6 million as of November 2, 2013, which will be recognized over a weighted average period of approximately 1.6 years. | ||||||||||||||||
Stock Options | ||||||||||||||||
At November 2, 2013, there were no unvested stock options. | ||||||||||||||||
Outstanding Stock Options | ||||||||||||||||
Changes in the Company’s outstanding stock options for Year-To-Date 2013 were as follows: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Options | Average | Average | Intrinsic | |||||||||||||
Exercise Price | Remaining | Value | ||||||||||||||
Contractual Life | ||||||||||||||||
(in thousands) | (in years) | (in thousands) | ||||||||||||||
Options outstanding, beginning of period | 84 | $ | 30.08 | 3.5 | $ | 1,633 | ||||||||||
Exercised | (48 | ) | 30.54 | N/A | 899 | |||||||||||
Forfeited | — | — | N/A | 13 | ||||||||||||
Options outstanding and exercisable, end of period | 36 | $ | 29.54 | 3.9 | $ | 898 | ||||||||||
NET_INCOME_LOSS_PER_COMMON_SHA
NET INCOME (LOSS) PER COMMON SHARE | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
NET INCOME (LOSS) PER COMMON SHARE | ' | |||||||||||||||
NET INCOME PER COMMON SHARE | ||||||||||||||||
The following table reconciles net income and share amounts utilized to calculate basic and diluted net income per common share (in thousands): | ||||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
November 2, 2013 | October 27, 2012 | 2-Nov-13 | 27-Oct-12 | |||||||||||||
Net income | $ | 41,739 | $ | 37,305 | $ | 37,375 | $ | 44,115 | ||||||||
Basic weighted average common shares | 22,337 | 24,086 | 22,632 | 24,290 | ||||||||||||
Dilutive effect of stock awards | 291 | 207 | 264 | 163 | ||||||||||||
Diluted weighted average common shares | 22,628 | 24,293 | 22,896 | 24,453 | ||||||||||||
Antidilutive stock awards | — | 3 | 42 | 7 | ||||||||||||
Antidilutive stock awards (stock options, Deferred Awards and Performance Awards) represent those awards that are excluded from the earnings per share calculation as a result of their antidilutive effect in the application of the treasury stock method in accordance with the “Earnings per Share” topic of the FASB ASC. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended | |||||||||||||
Nov. 02, 2013 | ||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||
PROPERTY AND EQUIPMENT | ' | |||||||||||||
PROPERTY AND EQUIPMENT | ||||||||||||||
Property and equipment consist of the following (in thousands): | ||||||||||||||
Asset | November 2, 2013 | February 2, 2013 | October 27, 2012 | |||||||||||
Life | ||||||||||||||
Property and equipment: | ||||||||||||||
Land and land improvements | — | $ | 3,403 | $ | 3,403 | $ | 3,403 | |||||||
Building and improvements | 20-25 yrs | 35,548 | 35,548 | 35,548 | ||||||||||
Material handling equipment | 10-15 yrs | 48,345 | 48,346 | 52,547 | ||||||||||
Leasehold improvements | Lease life | 379,253 | 391,311 | 402,103 | ||||||||||
Store fixtures and equipment | 3-10 yrs | 245,892 | 265,030 | 270,140 | ||||||||||
Capitalized software | 5-10 yrs | 72,642 | 65,885 | 71,553 | ||||||||||
Construction in progress | — | 34,825 | 34,433 | 37,464 | ||||||||||
819,908 | 843,956 | 872,758 | ||||||||||||
Accumulated depreciation and amortization | (501,887 | ) | (513,855 | ) | (536,805 | ) | ||||||||
Property and equipment, net | $ | 318,021 | $ | 330,101 | $ | 335,953 | ||||||||
During the second quarter of fiscal 2013, the Company conducted a review of its store portfolio using business hurdles management designed to enhance profitability and improve overall operating results. Based on this review, the Company compiled a list of underperforming stores targeted for closure (the “Disposition List”). The Company plans to close approximately 110 underperforming stores through fiscal 2016, including approximately 40 stores in fiscal 2013. The Company also identified additional underperforming stores for which the Company will review its options for improving their financial performance, including but not limited to negotiating occupancy relief, in order to achieve the business hurdles. If these stores are unable to do so, then the Company will move them to the Disposition List. | ||||||||||||||
At November 2, 2013, the Company performed impairment testing on 1,066 stores with a total net book value of approximately $168.4 million. During the Third Quarter 2013 the Company did not incur any asset impairment charges. During Year-To-Date 2013, the Company recorded store asset impairment charges of $12.7 million for 75 stores, of which 48 were fully impaired and 27 partially impaired. | ||||||||||||||
Company management continues to believe that making progress on its systems implementations will be one of the key drivers to improve its operations and strengthen its financial performance. During the second quarter of fiscal 2013 the Company established a strategic long term systems plan. As part of this plan, the Company concluded that certain development costs previously incurred were no longer relevant and deemed certain systems to be obsolete and needed to be replaced by enhanced capabilities in order to incorporate industry best practices as well as service our international franchisees and wholesale business partners. Accordingly, the Company recorded asset impairment charges of $9.1 million and incurred $1.2 million of selling, general and administrative expenses related to the write-down of some previously capitalized development costs and obsolete systems. | ||||||||||||||
At October 27, 2012, the Company performed impairment testing on 1,004 stores with a total net book value of approximately $166.1 million. During the Third Quarter 2012, the Company recorded $0.5 million of impairment charges primarily related to two underperforming stores, which were both partially impaired. During Year-To-Date 2012, the Company recorded a $2.1 million impairment charge primarily related to five underperforming stores, of which two were fully impaired and three were partially impaired. | ||||||||||||||
As of November 2, 2013, February 2, 2013 and October 27, 2012, the Company had approximately $5.5 million, $4.3 million and $8.9 million, respectively, in property and equipment for which payment had not yet been made. These amounts are included in accounts payable and accrued expenses and other current liabilities. |
CREDIT_FACILITY
CREDIT FACILITY | 9 Months Ended | |||||||||||
Nov. 02, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
CREDIT FACILITY | ' | |||||||||||
CREDIT FACILITY | ||||||||||||
The Company and certain of its domestic subsidiaries maintain a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), Bank of America, N.A., HSBC Business Credit (USA) Inc., and JPMorgan Chase Bank, N.A. as lenders (collectively, the “Lenders”) and Wells Fargo, as Administrative Agent, Collateral Agent and Swing Line Lender (the “Credit Agreement”). The Credit Agreement has been amended from time to time and the provisions below reflect all amendments. | ||||||||||||
The Credit Agreement, which expires in August 2017, consists of a $150 million asset based revolving credit facility, with a $125 million sublimit for standby and documentary letters of credit and an accordion feature that could provide up to $75 million of additional availability, of which $25 million is committed. Revolving credit loans outstanding under the Credit Agreement bear interest, at the Company’s option, at: | ||||||||||||
(i) | the prime rate plus a margin of 0.50% to 0.75% based on the amount of the Company’s average excess availability under the facility; or | |||||||||||
(ii) | the London InterBank Offered Rate, or “LIBOR”, for an interest period of one, two, three or six months, as selected by the Company, plus a margin of 1.50% to 1.75% based on the amount of the Company’s average excess availability under the facility. | |||||||||||
The Company is charged an unused line fee of 0.25% on the unused portion of the commitments. Letter of credit fees range from 0.75% to 0.875% for commercial letters of credit and range from 1.00% to 1.25% for standby letters of credit. Letter of credit fees are determined based on the amount of the Company's average excess availability under the facility. The amount available for loans and letters of credit under the Credit Agreement is determined by a borrowing base consisting of certain credit card receivables, certain inventory and the fair market value of certain real estate, subject to certain reserves. | ||||||||||||
The outstanding obligations under the Credit Agreement may be accelerated upon the occurrence of certain events, including, among others, non-payment, breach of covenants, the institution of insolvency proceedings, defaults under other material indebtedness and a change of control, subject, in the case of certain defaults, to the expiration of applicable grace periods. The Company is not subject to any early termination fees. | ||||||||||||
The Credit Agreement contains covenants, which include limitations on stock buybacks and the payment of cash dividends or similar payments. Credit extended under the Credit Agreement is secured by a first priority security interest in substantially all of the Company’s U.S. assets excluding intellectual property, software, equipment and fixtures. | ||||||||||||
On December 20, 2012, the Credit Agreement was amended to provide for, among other things, an extension of the term of the Credit Agreement, a reduction in various rates charged under the Agreement as reflected above and the elimination of a first priority security interest in substantially all of the Company's U.S. intellectual property, software, equipment and fixtures. This amendment also provided for the replacement of certain restrictive limits with an availability test, which must be met in order to permit the taking of certain actions. In conjunction with this amendment, the Company paid approximately $0.4 million in additional deferred financing costs. | ||||||||||||
As of November 2, 2013, the Company has capitalized an aggregate of approximately $3.7 million in deferred financing costs related to the Credit Agreement. The unamortized balance of deferred financing costs at November 2, 2013 was approximately $1.4 million. Unamortized deferred financing costs are amortized on a straight-line basis over the remaining term of the Credit Agreement. | ||||||||||||
The table below presents the components (in millions) of the Company’s credit facility: | ||||||||||||
November 2, | February 2, | October 27, | ||||||||||
2013 | 2013 | 2012 | ||||||||||
Credit facility maximum | $ | 150 | $ | 150 | $ | 150 | ||||||
Borrowing base | 150 | 150 | 150 | |||||||||
Outstanding borrowings | — | — | — | |||||||||
Letters of credit outstanding—merchandise | 3.7 | 27.1 | 24.6 | |||||||||
Letters of credit outstanding—standby | 10.2 | 10.6 | 10.6 | |||||||||
Utilization of credit facility at end of period | 13.9 | 37.7 | 35.2 | |||||||||
Availability (1) | $ | 136.1 | $ | 112.3 | $ | 114.8 | ||||||
Interest rate at end of period | 3.8 | % | 3.8 | % | 4 | % | ||||||
Year-To-Date 2013 | Fiscal | Year-To-Date 2012 | ||||||||||
2012 | ||||||||||||
Average end of day loan balance during the period | $ | — | $ | — | $ | — | ||||||
Highest end of day loan balance during the period | 10.4 | 1.1 | 1.1 | |||||||||
Average interest rate | 3.8 | % | 4 | % | 4 | % | ||||||
____________________________________________ | ||||||||||||
-1 | The sublimit availability for the letters of credit was $111.1 million, $87.3 million, and $89.8 million at November 2, 2013, February 2, 2013, and October 27, 2012, respectively. | |||||||||||
Letter of credit fees were approximately $0.2 million in both Year-To-Date 2013 and Year-To-Date 2012 and are substantially included in cost of sales |
LEGAL_AND_REGULATORY_MATTERS
LEGAL AND REGULATORY MATTERS | 9 Months Ended |
Nov. 02, 2013 | |
LEGAL AND REGULATORY MATTERS [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
LEGAL AND REGULATORY MATTERS | |
During the Third Quarter 2013, neither the Company nor any of its subsidiaries became a party to, nor did any of their property become the subject of, any material legal proceedings, and there were no material developments to any legal proceedings previously reported in the Company's Annual Report on Form 10-K for the fiscal year ended February 2, 2013. | |
The Company is also involved in various legal proceedings arising in the normal course of business. In the opinion of management, any ultimate liability arising out of these proceedings will not have a material effect on the Company's financial position, results of operations or cash flows. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Nov. 02, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The Company computes income taxes using the liability method. This method requires recognition of deferred tax assets and liabilities, measured by enacted rates, attributable to temporary differences between the financial statement and income tax bases of assets and liabilities. The Company's deferred tax assets and liabilities are comprised largely of differences relating to depreciation, rent expense, inventory and various accruals and reserves. | |
The Company’s effective tax rate for the Third Quarter 2013 and Year-To-Date 2013 was 32.3% and 31.4%, respectively, compared to 30.3% and 30.7% during the Third Quarter 2012 and Year-To-Date 2012, respectively. The increase in rate for Year-To-Date 2013 compared to Year-To-Date 2012 primarily relates to the anticipated mix of income between high tax jurisdictions and low taxed jurisdictions used in calculating the effective tax rates in 2013 compared to 2012. | |
During the Third Quarter 2013 and Year-To-Date 2013, the Company recognized less than $0.1 million and $0.1 million, respectively of additional interest expense related to its unrecognized tax benefits. During the Third Quarter 2012 and Year-To-Date 2012, the Company recognized $0.1 million and $0.2 million, respectively of additional interest expense related to its unrecognized tax benefits. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. | |
The Company is subject to taxation and files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax audits for years through fiscal 2006. The Company, with certain exceptions, is no longer subject to income tax examinations by state and local or foreign tax authorities for tax years before fiscal 2008. | |
Management believes that an adequate provision has been made for any adjustments that may result from tax examinations; however, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with management's expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. |
INTEREST_INCOME_EXPENSE_NET
INTEREST INCOME (EXPENSE), NET | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
INTEREST INCOME (EXPENSE), NET | ' | |||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
November 2, | October 27, | November 2, | October 27, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest income | $ | 290 | $ | 234 | $ | 792 | $ | 685 | ||||||||
Less: | ||||||||||||||||
Interest expense – credit facilities | 33 | 39 | 93 | 115 | ||||||||||||
Unused line fee | 74 | 100 | 214 | 324 | ||||||||||||
Amortization of deferred financing fees | 91 | 91 | 273 | 273 | ||||||||||||
Other interest and fees | 10 | 27 | 70 | 77 | ||||||||||||
Total interest expense | 208 | 257 | 650 | 789 | ||||||||||||
Interest income (expense), net | $ | 82 | $ | (23 | ) | $ | 142 | $ | (104 | ) | ||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||
In accordance with the “Segment Reporting” topic of the FASB ASC, the Company reports segment data based on geography: The Children’s Place U.S. and The Children’s Place International. Each segment includes an e-commerce business located at www.childrensplace.com. Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico based stores. Included in The Children's Place International segment are the Company's Canadian based stores and revenue from international franchisees. The Company measures its segment profitability based on operating income, defined as income before interest and taxes. Net sales and direct costs are recorded by each segment. Certain inventory procurement functions such as production and design as well as corporate overhead, including executive management, finance, real estate, human resources, legal, and information technology services are managed by The Children’s Place U.S. segment. Expenses related to these functions, including depreciation and amortization, are allocated to The Children’s Place International segment based primarily on net sales. The assets related to these functions are not allocated. The Company periodically reviews these allocations and adjusts them based upon changes in business circumstances. Net sales from external customers are derived from merchandise sales and the Company has no major customers that account for more than 10% of its net sales. As of November 2, 2013, The Children’s Place U.S. operated 990 stores and The Children’s Place International operated 133 stores. As of October 27, 2012, The Children’s Place U.S. operated 973 stores and The Children’s Place International operated 129 stores. | ||||||||||||||||
The following tables provide segment level financial information (dollars in thousands): | ||||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
November 2, | October 27, | November 2, | October 27, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net sales: | ||||||||||||||||
The Children’s Place U.S. | $ | 421,070 | $ | 424,854 | $ | 1,124,676 | $ | 1,119,690 | ||||||||
The Children’s Place International | 71,610 | 76,074 | 173,616 | 180,572 | ||||||||||||
Total net sales | $ | 492,680 | $ | 500,928 | $ | 1,298,292 | $ | 1,300,262 | ||||||||
Gross profit: | ||||||||||||||||
The Children’s Place U.S. | $ | 168,753 | $ | 173,384 | $ | 419,243 | $ | 425,394 | ||||||||
The Children’s Place International | 33,008 | 36,149 | 71,968 | 77,489 | ||||||||||||
Total gross profit | $ | 201,761 | $ | 209,533 | $ | 491,211 | $ | 502,883 | ||||||||
Gross Margin: | ||||||||||||||||
The Children’s Place U.S. | 40.1 | % | 40.8 | % | 37.3 | % | 38 | % | ||||||||
The Children’s Place International | 46.1 | % | 47.5 | % | 41.5 | % | 42.9 | % | ||||||||
Total gross margin | 41 | % | 41.8 | % | 37.8 | % | 38.7 | % | ||||||||
Operating income: | ||||||||||||||||
The Children’s Place U.S. (1) | $ | 49,199 | $ | 40,407 | $ | 42,178 | $ | 49,274 | ||||||||
The Children’s Place International (2) | 12,368 | 13,119 | 12,202 | 14,522 | ||||||||||||
Total operating income | $ | 61,567 | $ | 53,526 | $ | 54,380 | $ | 63,796 | ||||||||
Operating income as a percent of net sales: | ||||||||||||||||
The Children’s Place U.S. | 11.7 | % | 9.5 | % | 3.8 | % | 4.4 | % | ||||||||
The Children’s Place International | 17.3 | % | 17.2 | % | 7 | % | 8 | % | ||||||||
Total operating income | 12.5 | % | 10.7 | % | 4.2 | % | 4.9 | % | ||||||||
Depreciation and amortization: | ||||||||||||||||
The Children’s Place U.S. | $ | 14,584 | $ | 19,497 | $ | 43,065 | $ | 48,220 | ||||||||
The Children’s Place International | 1,889 | 3,526 | 5,825 | 9,503 | ||||||||||||
Total depreciation and amortization | $ | 16,473 | $ | 23,023 | $ | 48,890 | $ | 57,723 | ||||||||
Capital expenditures: | ||||||||||||||||
The Children’s Place U.S. | $ | 17,117 | $ | 24,783 | $ | 49,391 | $ | 60,073 | ||||||||
The Children’s Place International | 1,371 | 2,360 | 7,767 | 11,307 | ||||||||||||
Total capital expenditures | $ | 18,488 | $ | 27,143 | $ | 57,158 | $ | 71,380 | ||||||||
____________________________________________ | ||||||||||||||||
-1 | Includes other costs (income) associated with the closures of the West Coast DC and Northeast DC of $0.2 million and $0.6 million for the Third Quarter 2013 and Third Quarter 2012, respectively, and $(0.8) million and $4.5 million, for Year-To-Date 2013 and Year-To-Date 2012, respectively. Also includes a $20.8 million impairment charge for Year-To-Date 2013 and a $0.5 million and $2.1 million impairment charge for Third Quarter 2012 and Year-To-Date 2012, respectively. There was no impairment charge for the Third Quarter 2013. Also includes additional costs incurred related to restructuring, severance and reorganizations of approximately $0.3 million and $0.0 million for the Third Quarter 2013 and Third Quarter 2012, respectively and $2.5 million and $3.9 million for Year-To-Date 2013 and Year-To-Date 2012, respectively. | |||||||||||||||
-2 | Includes a $1.0 million impairment charge for Year-To-Date 2013. | |||||||||||||||
November 2, 2013 | February 2, 2013 | October 27, 2012 | ||||||||||||||
Total assets: | ||||||||||||||||
The Children’s Place U.S. | $ | 810,644 | $ | 746,911 | $ | 785,640 | ||||||||||
The Children’s Place International | 164,073 | 176,499 | 173,371 | |||||||||||||
Total assets | $ | 974,717 | $ | 923,410 | $ | 959,011 | ||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Nov. 02, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
SUBSEQUENT EVENTS | |
Subsequent to November 2, 2013 and through December 3, 2013, the Company repurchased less than 0.1 million shares for approximately $1.0 million, which brought the total under the 2012 Share Repurchase Program to approximately $75.3 million. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended | ||||||||||||
Nov. 02, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | ' | ||||||||||||
Exit or Disposal Cost Obligations | |||||||||||||
In accordance with the “Exit or Disposal Cost Obligations” topic of the FASB ASC, the Company records its exit and disposal costs at fair value to terminate an operating lease or contract when termination occurs before the end of its term and without future economic benefit to the Company. In cases of employee termination benefits, the Company recognizes an obligation only when all of the following criteria are met: | |||||||||||||
• | management, having the authority to approve the action, commits to a plan of termination; | ||||||||||||
• | the plan identifies the number of employees to be terminated, their job classifications or functions and their locations, and the expected completion date; | ||||||||||||
• | the plan establishes the terms of the benefit arrangement, including the benefits that employees will receive upon termination (including but not limited to cash payments), in sufficient detail to enable employees to determine the type and amount of benefits they will receive if they are involuntarily terminated; and | ||||||||||||
• | actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. | ||||||||||||
During the first quarter of fiscal 2012, management approved a plan to exit its distribution center in Ontario, California (the "West Coast DC") and move the operations to its distribution center in Fort Payne, Alabama (the "Southeast DC"). The lease of the West Coast DC expires in March 2016 and the Company ceased using the facility in May 2012. During fiscal 2012, the Company recognized approximately $4.2 million of costs in exiting the West Coast DC, which primarily included lease termination costs (net of anticipated sublease income), asset disposal costs, and severance to affected employees. These costs are included in other costs in the accompanying condensed consolidated statements of operations. Remaining costs associated with the exit of the West Coast DC are not expected to be material. | |||||||||||||
In August 2012, management approved a plan to close the Company's distribution center in Dayton, New Jersey ("Northeast DC") and move the operations to its Southeast DC. The Company ceased operations in the Northeast DC during the fourth quarter of fiscal 2012. The lease of its Northeast DC expires in January 2021 and the Company ceased using the facility in May 2013. During fiscal 2012, the Company recognized approximately $6.8 million of costs in exiting the Northeast DC, which primarily included lease termination costs (net of anticipated sublease income), accelerated depreciation, and severance to affected employees. During the second quarter of 2013, the Company executed a sublet arrangement for this facility. As a result of higher than anticipated sublease income, the Company reduced the Northeast DC accrual by $1.5 million during Year-To-Date 2013. These costs are included in other costs in the accompanying condensed consolidated statements of operations. Remaining costs associated with the exit of the Northeast DC are not expected to be material. | |||||||||||||
At October 27, 2012, the Company had a remaining accrual of $2.3 million related to the West Coast DC and Northeast DC lease termination costs, of which $0.7 million was included in accrued expenses and other current liabilities and $1.6 million was included in other long-term liabilities. The following table provides details of the remaining accruals for the West Coast DC and Northeast DC as of November 2, 2013, of which approximately $1.7 million was included in accrued expenses and other current liabilities and approximately $2.0 million was included in other long-term liabilities (dollars in thousands): | |||||||||||||
Other Associated Costs | Lease Termination Costs | Total | |||||||||||
Balance at February 2, 2013 | $ | — | $ | 8,376 | $ | 8,376 | |||||||
Restructuring costs | 398 | (1,160 | ) | (762 | ) | ||||||||
Payments and reductions | (398 | ) | (3,547 | ) | (3,945 | ) | |||||||
Balance at November 2, 2013 | $ | — | $ | 3,669 | $ | 3,669 | |||||||
Stock-based Compensation | ' | ||||||||||||
Stock-based Compensation | |||||||||||||
The Company generally grants time vesting stock awards ("Deferred Awards") and performance-based stock awards ("Performance Awards") to employees at management levels. The Company also grants Deferred Awards to its non-employee directors. Deferred Awards are granted in the form of restricted stock units that require each recipient to complete a service period. Deferred Awards generally vest ratably over three years except for those granted to non-employee directors, which generally vest over one year. Performance Awards are granted in the form of restricted stock units which have performance criteria that must be achieved for the awards to vest in addition to a service period requirement. Each Performance Award has a defined number of shares that an employee can earn (“Target Shares”) and based on the performance level achieved, the number of shares earned can be anywhere from zero up to a maximum percentage of Target Shares, as defined in the award agreement, which generally has been 200%. Performance Awards have generally cliff vested after a three year service period, except those granted pursuant to a contract. The fair value of all awards issued prior to May 20, 2011 was based on the average of the high and low selling price of the Company’s common stock on the grant date. Effective with the adoption of the Company's 2011 Equity Incentive Plan, the fair value of all awards granted on or after May 20, 2011 is based on the closing price of the Company’s common stock on the grant date. Stock-based compensation expense is recognized ratably over the related service period reduced for estimated forfeitures of those awards not expected to vest due to employee turnover. Stock-based compensation expense, as it relates to Performance Awards, is also adjusted based on the Company's estimate of the percentage of the aggregate Target Shares expected to be earned. | |||||||||||||
Deferred Compensation Plan | ' | ||||||||||||
Deferred Compensation Plan | |||||||||||||
The Company has a deferred compensation plan (the “Deferred Compensation Plan”), which is a nonqualified, unfunded plan, for eligible senior level employees. Under the plan, participants may elect to defer up to 80% of his or her base salary and/or up to 100% of his or her bonus to be earned for the year following the year in which the deferral election is made. The Deferred Compensation Plan also permits members of the Board of Directors to elect to defer payment of all or a portion of their retainer and other fees to be earned for the year following the year in which a deferral election is made. In addition, eligible employees and directors of the Company may also elect to defer payment of any shares of Company stock that is earned with respect to stock-based awards. Directors may elect to have all or a certain portion of their fees earned for their service on the Board invested in shares of the Company’s common stock. Such elections are irrevocable. The Company is not required to contribute to the Deferred Compensation Plan, but at its sole discretion, can make additional contributions on behalf of the participants. Deferred amounts are not subject to forfeiture and are deemed invested among investment funds offered under the Deferred Compensation Plan, as directed by each participant. Payments of deferred amounts (as adjusted for earnings and losses) are payable following separation from service or at a date or dates elected by the participant at the time the deferral is elected. Payments of deferred amounts are generally made in either a lump sum or in annual installments over a period not exceeding 15 years. All deferred amounts are payable in the form in which they were made except for board fees invested in shares of the Company's common stock, which will be settled in shares of Company common stock. Earlier distributions are not permitted except in the case of an unforeseen hardship. | |||||||||||||
The Company has established a rabbi trust that serves as an investment to shadow the Deferred Compensation Plan liability. The assets of the rabbi trust are general assets of the Company and as such, would be subject to the claims of creditors in the event of bankruptcy or insolvency. The investments of the rabbi trust consist of company-owned life insurance policies (“COLIs”) and Company common stock. The Deferred Compensation Plan liability, excluding Company common stock, is included in other long-term liabilities and changes in the balance, except those relating to payments, are recognized as compensation expense. The cash surrender values of the COLIs are included in other assets and related earnings and losses are recognized as investment income or loss, which is included in selling, general and administrative expenses. Company stock deferrals are included in the equity section of the Company’s consolidated balance sheet as treasury stock and as a deferred compensation liability. Deferred stock is recorded at fair market value at the time of deferral and any subsequent changes in fair market value are not recognized. | |||||||||||||
The Deferred Compensation Plan liability, excluding Company stock, at fair value, was approximately $0.3 million, $0.7 million, and $0.6 million at November 2, 2013, February 2, 2013 and October 27, 2012, respectively. The cash surrender value of the COLIs, at fair value, was approximately $0.7 million at each of November 2, 2013, February 2, 2013 and October 27, 2012. Company stock was $1.5 million, $1.1 million, and $1.1 million at November 2, 2013, February 2, 2013 and October 27, 2012, respectively | |||||||||||||
Retained Earnings [Policy Text Block] | ' | ||||||||||||
Retained Earnings | |||||||||||||
The Company is currently restricted from paying dividends in cash under its credit facility agreement (see Note 6). There are no other restrictions on the Company's retained earning | |||||||||||||
Fair Value Measurement and Financial Instruments | ' | ||||||||||||
Fair Value Measurement and Financial Instruments | |||||||||||||
The “Fair Value Measurements and Disclosure” topic of the FASB ASC provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. | |||||||||||||
This topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: | |||||||||||||
• | Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities | ||||||||||||
• | Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly | ||||||||||||
• | Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities | ||||||||||||
The Company’s cash and cash equivalents, short-term investments, accounts receivable, accounts payable and credit facility are all short-term in nature. As such, their carrying amounts approximate fair value and fall within Level 1 of the fair value hierarchy. The underlying assets and liabilities of the Company’s Deferred Compensation Plan, excluding Company stock, fall within Level 1 of the fair value hierarchy. The Company stock that is included in the Deferred Compensation Plan is not subject to fair value measurement. |
BASIS_OF_PRESENTATION_Exit_Cos
BASIS OF PRESENTATION Exit Costs (Tables) | 9 Months Ended | ||||||||||||
Nov. 02, 2013 | |||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | ' | ||||||||||||
The following table provides details of the remaining accruals for the West Coast DC and Northeast DC as of November 2, 2013, of which approximately $1.7 million was included in accrued expenses and other current liabilities and approximately $2.0 million was included in other long-term liabilities (dollars in thousands): | |||||||||||||
Other Associated Costs | Lease Termination Costs | Total | |||||||||||
Balance at February 2, 2013 | $ | — | $ | 8,376 | $ | 8,376 | |||||||
Restructuring costs | 398 | (1,160 | ) | (762 | ) | ||||||||
Payments and reductions | (398 | ) | (3,547 | ) | (3,945 | ) | |||||||
Balance at November 2, 2013 | $ | — | $ | 3,669 | $ | 3,669 | |||||||
STOCKHOLDERS_EQUITY_Share_Repu
STOCKHOLDERS' EQUITY Share Repurchase (Tables) | 3 Months Ended | ||||||||||||||
Nov. 02, 2013 | |||||||||||||||
Stockholders' Equity Attributable to Parent [Abstract] | ' | ||||||||||||||
Schedule of Repurchase Agreements [Table Text Block] | ' | ||||||||||||||
The following table summarizes the Company's share repurchases (in thousands): | |||||||||||||||
Thirty-nine Weeks Ended | |||||||||||||||
November 2, 2013 | October 27, 2012 | ||||||||||||||
Shares | Value | Shares | Value | ||||||||||||
Shares repurchases related to: | |||||||||||||||
2011 Share Repurchase Program | — | $ | — | 377.2 | $ | 19,245 | |||||||||
2012 $50 million Share Repurchase Program | — | — | 558 | 28,428 | |||||||||||
2012 Share Repurchase Program (1) | 1,097.10 | 54,714 | — | — | |||||||||||
Withholding taxes | 1.8 | 132 | 1 | 57 | |||||||||||
Shares acquired and held in treasury | 7.6 | $ | 394 | 14 | $ | 675 | |||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of stock-based compensation expense | ' | |||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
November 2, | October 27, | November 2, | October 27, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Deferred Awards | $ | 3,243 | $ | 2,514 | $ | 10,085 | $ | 8,115 | ||||||||
Performance Awards | 2,298 | 935 | 6,406 | 2,291 | ||||||||||||
Total stock-based compensation expense (1) | $ | 5,541 | $ | 3,449 | $ | 16,491 | $ | 10,406 | ||||||||
Schedule of changes in unvested deferred awards | ' | |||||||||||||||
Number of | Weighted | |||||||||||||||
Shares | Average | |||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
(in thousands) | ||||||||||||||||
Unvested Deferred Awards, beginning of period | 560 | $ | 49.53 | |||||||||||||
Granted | 372 | 48.61 | ||||||||||||||
Vested | (191 | ) | 49.46 | |||||||||||||
Forfeited | (47 | ) | 48.93 | |||||||||||||
Unvested Deferred Awards, end of period | 694 | $ | 49.1 | |||||||||||||
Schedule of unvested performance awards | ' | |||||||||||||||
Number of | Weighted | |||||||||||||||
Shares (1) | Average | |||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
(in thousands) | ||||||||||||||||
Unvested Performance Awards, beginning of period | 172 | $ | 48.59 | |||||||||||||
Granted | 204 | 47.89 | ||||||||||||||
Vested | (2 | ) | 46.48 | |||||||||||||
Forfeited | (10 | ) | 47.25 | |||||||||||||
Unvested Performance Awards, end of period | 364 | $ | 48.25 | |||||||||||||
Schedule of stock option activity | ' | |||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Options | Average | Average | Intrinsic | |||||||||||||
Exercise Price | Remaining | Value | ||||||||||||||
Contractual Life | ||||||||||||||||
(in thousands) | (in years) | (in thousands) | ||||||||||||||
Options outstanding, beginning of period | 84 | $ | 30.08 | 3.5 | $ | 1,633 | ||||||||||
Exercised | (48 | ) | 30.54 | N/A | 899 | |||||||||||
Forfeited | — | — | N/A | 13 | ||||||||||||
Options outstanding and exercisable, end of period | 36 | $ | 29.54 | 3.9 | $ | 898 | ||||||||||
NET_INCOME_LOSS_PER_COMMON_SHA1
NET INCOME (LOSS) PER COMMON SHARE (Tables) | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Reconciles net income (loss) and share amounts utilized to calculate basic and diluted net income (loss) per common share | ' | |||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
November 2, 2013 | October 27, 2012 | 2-Nov-13 | 27-Oct-12 | |||||||||||||
Net income | $ | 41,739 | $ | 37,305 | $ | 37,375 | $ | 44,115 | ||||||||
Basic weighted average common shares | 22,337 | 24,086 | 22,632 | 24,290 | ||||||||||||
Dilutive effect of stock awards | 291 | 207 | 264 | 163 | ||||||||||||
Diluted weighted average common shares | 22,628 | 24,293 | 22,896 | 24,453 | ||||||||||||
Antidilutive stock awards | — | 3 | 42 | 7 | ||||||||||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended | |||||||||||||
Nov. 02, 2013 | ||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||
Property and equipment | ' | |||||||||||||
Asset | November 2, 2013 | February 2, 2013 | October 27, 2012 | |||||||||||
Life | ||||||||||||||
Property and equipment: | ||||||||||||||
Land and land improvements | — | $ | 3,403 | $ | 3,403 | $ | 3,403 | |||||||
Building and improvements | 20-25 yrs | 35,548 | 35,548 | 35,548 | ||||||||||
Material handling equipment | 10-15 yrs | 48,345 | 48,346 | 52,547 | ||||||||||
Leasehold improvements | Lease life | 379,253 | 391,311 | 402,103 | ||||||||||
Store fixtures and equipment | 3-10 yrs | 245,892 | 265,030 | 270,140 | ||||||||||
Capitalized software | 5-10 yrs | 72,642 | 65,885 | 71,553 | ||||||||||
Construction in progress | — | 34,825 | 34,433 | 37,464 | ||||||||||
819,908 | 843,956 | 872,758 | ||||||||||||
Accumulated depreciation and amortization | (501,887 | ) | (513,855 | ) | (536,805 | ) | ||||||||
Property and equipment, net | $ | 318,021 | $ | 330,101 | $ | 335,953 | ||||||||
CREDIT_FACILITY_Tables
CREDIT FACILITY (Tables) | 9 Months Ended | |||||||||||
Nov. 02, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Components of credit facility | ' | |||||||||||
November 2, | February 2, | October 27, | ||||||||||
2013 | 2013 | 2012 | ||||||||||
Credit facility maximum | $ | 150 | $ | 150 | $ | 150 | ||||||
Borrowing base | 150 | 150 | 150 | |||||||||
Outstanding borrowings | — | — | — | |||||||||
Letters of credit outstanding—merchandise | 3.7 | 27.1 | 24.6 | |||||||||
Letters of credit outstanding—standby | 10.2 | 10.6 | 10.6 | |||||||||
Utilization of credit facility at end of period | 13.9 | 37.7 | 35.2 | |||||||||
Availability (1) | $ | 136.1 | $ | 112.3 | $ | 114.8 | ||||||
Interest rate at end of period | 3.8 | % | 3.8 | % | 4 | % | ||||||
Year-To-Date 2013 | Fiscal | Year-To-Date 2012 | ||||||||||
2012 | ||||||||||||
Average end of day loan balance during the period | $ | — | $ | — | $ | — | ||||||
Highest end of day loan balance during the period | 10.4 | 1.1 | 1.1 | |||||||||
Average interest rate | 3.8 | % | 4 | % | 4 | % | ||||||
____________________________________________ | ||||||||||||
-1 | The sublimit availability for the letters of credit was $111.1 million, $87.3 million, and $89.8 million at November 2, 2013, February 2, 2013, and October 27, 2012, respectively. |
INTEREST_INCOME_EXPENSE_NET_Ta
INTEREST INCOME (EXPENSE), NET (Tables) | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Components of interest income (expense) | ' | |||||||||||||||
The following table presents the components of the Company’s interest expense, net (in thousands): | ||||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
November 2, | October 27, | November 2, | October 27, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest income | $ | 290 | $ | 234 | $ | 792 | $ | 685 | ||||||||
Less: | ||||||||||||||||
Interest expense – credit facilities | 33 | 39 | 93 | 115 | ||||||||||||
Unused line fee | 74 | 100 | 214 | 324 | ||||||||||||
Amortization of deferred financing fees | 91 | 91 | 273 | 273 | ||||||||||||
Other interest and fees | 10 | 27 | 70 | 77 | ||||||||||||
Total interest expense | 208 | 257 | 650 | 789 | ||||||||||||
Interest income (expense), net | $ | 82 | $ | (23 | ) | $ | 142 | $ | (104 | ) | ||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule of segment level financial information | ' | |||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
November 2, | October 27, | November 2, | October 27, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net sales: | ||||||||||||||||
The Children’s Place U.S. | $ | 421,070 | $ | 424,854 | $ | 1,124,676 | $ | 1,119,690 | ||||||||
The Children’s Place International | 71,610 | 76,074 | 173,616 | 180,572 | ||||||||||||
Total net sales | $ | 492,680 | $ | 500,928 | $ | 1,298,292 | $ | 1,300,262 | ||||||||
Gross profit: | ||||||||||||||||
The Children’s Place U.S. | $ | 168,753 | $ | 173,384 | $ | 419,243 | $ | 425,394 | ||||||||
The Children’s Place International | 33,008 | 36,149 | 71,968 | 77,489 | ||||||||||||
Total gross profit | $ | 201,761 | $ | 209,533 | $ | 491,211 | $ | 502,883 | ||||||||
Gross Margin: | ||||||||||||||||
The Children’s Place U.S. | 40.1 | % | 40.8 | % | 37.3 | % | 38 | % | ||||||||
The Children’s Place International | 46.1 | % | 47.5 | % | 41.5 | % | 42.9 | % | ||||||||
Total gross margin | 41 | % | 41.8 | % | 37.8 | % | 38.7 | % | ||||||||
Operating income: | ||||||||||||||||
The Children’s Place U.S. (1) | $ | 49,199 | $ | 40,407 | $ | 42,178 | $ | 49,274 | ||||||||
The Children’s Place International (2) | 12,368 | 13,119 | 12,202 | 14,522 | ||||||||||||
Total operating income | $ | 61,567 | $ | 53,526 | $ | 54,380 | $ | 63,796 | ||||||||
Operating income as a percent of net sales: | ||||||||||||||||
The Children’s Place U.S. | 11.7 | % | 9.5 | % | 3.8 | % | 4.4 | % | ||||||||
The Children’s Place International | 17.3 | % | 17.2 | % | 7 | % | 8 | % | ||||||||
Total operating income | 12.5 | % | 10.7 | % | 4.2 | % | 4.9 | % | ||||||||
Depreciation and amortization: | ||||||||||||||||
The Children’s Place U.S. | $ | 14,584 | $ | 19,497 | $ | 43,065 | $ | 48,220 | ||||||||
The Children’s Place International | 1,889 | 3,526 | 5,825 | 9,503 | ||||||||||||
Total depreciation and amortization | $ | 16,473 | $ | 23,023 | $ | 48,890 | $ | 57,723 | ||||||||
Capital expenditures: | ||||||||||||||||
The Children’s Place U.S. | $ | 17,117 | $ | 24,783 | $ | 49,391 | $ | 60,073 | ||||||||
The Children’s Place International | 1,371 | 2,360 | 7,767 | 11,307 | ||||||||||||
Total capital expenditures | $ | 18,488 | $ | 27,143 | $ | 57,158 | $ | 71,380 | ||||||||
____________________________________________ | ||||||||||||||||
-1 | Includes other costs (income) associated with the closures of the West Coast DC and Northeast DC of $0.2 million and $0.6 million for the Third Quarter 2013 and Third Quarter 2012, respectively, and $(0.8) million and $4.5 million, for Year-To-Date 2013 and Year-To-Date 2012, respectively. Also includes a $20.8 million impairment charge for Year-To-Date 2013 and a $0.5 million and $2.1 million impairment charge for Third Quarter 2012 and Year-To-Date 2012, respectively. There was no impairment charge for the Third Quarter 2013. Also includes additional costs incurred related to restructuring, severance and reorganizations of approximately $0.3 million and $0.0 million for the Third Quarter 2013 and Third Quarter 2012, respectively and $2.5 million and $3.9 million for Year-To-Date 2013 and Year-To-Date 2012, respectively. | |||||||||||||||
-2 | Includes a $1.0 million impairment charge for Year-To-Date 2013. | |||||||||||||||
November 2, 2013 | February 2, 2013 | October 27, 2012 | ||||||||||||||
Total assets: | ||||||||||||||||
The Children’s Place U.S. | $ | 810,644 | $ | 746,911 | $ | 785,640 | ||||||||||
The Children’s Place International | 164,073 | 176,499 | 173,371 | |||||||||||||
Total assets | $ | 974,717 | $ | 923,410 | $ | 959,011 | ||||||||||
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Feb. 02, 2013 | |
Stock awards | ' | ' | ' | ' | ' |
Vesting period (in years) | ' | ' | '1 year | '3 years | ' |
Maximum percentage of Target Shares that can be earned by the participants (as a percent) | ' | ' | 200.00% | ' | ' |
Deferred Compensation Plan | ' | ' | ' | ' | ' |
Maximum percentage of base salary elected to be deferred (as a percent) | ' | ' | 80.00% | ' | ' |
Maximum percentage of bonus elected to be deferred (as a percent) | ' | ' | 100.00% | ' | ' |
Maximum period over which annual installments of deferred payments are made (in years) | ' | ' | '15 | ' | ' |
Deferred compensation plan liability | $300,000 | $600,000 | $300,000 | $600,000 | $700,000 |
Cash Surrender Value of Life Insurance | 700,000 | ' | 700,000 | ' | ' |
Deferred compensation - Company stock | -1,513,000 | -1,057,000 | -1,513,000 | -1,057,000 | -1,119,000 |
Business Exit Costs | 200,000 | 570,000 | -762,000 | 4,466,000 | 6,800,000 |
westcoastdcexit [Domain] | ' | ' | ' | ' | ' |
Deferred Compensation Plan | ' | ' | ' | ' | ' |
Business Exit Costs | ' | ' | 4,200,000 | ' | ' |
accelerateddepreciation [Domain] | ' | ' | ' | ' | ' |
Deferred Compensation Plan | ' | ' | ' | ' | ' |
Business Exit Costs | $1,500,000 | ' | ' | ' | ' |
BASIS_OF_PRESENTATION_Details_
BASIS OF PRESENTATION (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Feb. 02, 2013 | |
Accounts Payable and Accrued Liabilities, Current | $118,832,000 | $105,264,000 | $118,832,000 | $105,264,000 | $101,586,000 |
Business Exit Costs | 200,000 | 570,000 | -762,000 | 4,466,000 | 6,800,000 |
Deferred Compensation Arrangements Maximum Percentage of Base Salary | ' | ' | 80.00% | ' | ' |
Deferred Compensation Arrangements Maximum Percentage of Bonus | ' | ' | 100.00% | ' | ' |
Deferred Compensation Arrangement with Individual, Maximum Contractual Term | ' | ' | '15 | ' | ' |
Deferred Compensation Cash-based Arrangements, Liability, Current and Noncurrent | 300,000 | 600,000 | 300,000 | 600,000 | 700,000 |
Cash Surrender Value of Life Insurance | 700,000 | ' | 700,000 | ' | ' |
Other Liabilities, Noncurrent | 9,436,000 | 7,634,000 | 9,436,000 | 7,634,000 | 10,493,000 |
remainingexitaccrual [Domain] | ' | ' | ' | ' | ' |
Other Liabilities, Noncurrent | ' | 2,300,000 | ' | 2,300,000 | ' |
onetimeterminatonbenefits [Domain] | ' | ' | ' | ' | ' |
accruedexitcostsadditions | 398,000 | ' | 398,000 | ' | 0 |
paymentsandreduction | -398,000 | ' | -398,000 | ' | ' |
accruedexitcostsonetimebenefits | 0 | ' | 0 | ' | ' |
leastterminationcosts [Domain] | ' | ' | ' | ' | ' |
Accounts Payable and Accrued Liabilities, Current | 1,700,000 | 700,000 | 1,700,000 | 700,000 | ' |
accruedexitcostsadditions | -1,160,000 | ' | -1,160,000 | ' | 8,376,000 |
paymentsandreduction | -3,547,000 | ' | -3,547,000 | ' | ' |
Capital Leases, Future Minimum Payments Due, Current | 3,669,000 | ' | 3,669,000 | ' | ' |
Other Liabilities, Noncurrent | 2,000,000 | 1,600,000 | 2,000,000 | 1,600,000 | ' |
totaladdsleasetermandonetimebenefits [Domain] | ' | ' | ' | ' | ' |
accruedexitcostsadditions | -762,000 | ' | -762,000 | ' | 8,376,000 |
paymentsandreduction | -3,945,000 | ' | -3,945,000 | ' | ' |
totalexitcostaccrual | $3,669,000 | ' | $3,669,000 | ' | ' |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | 7 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Feb. 02, 2013 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Nov. 02, 2013 | Oct. 27, 2012 | Oct. 27, 2012 | Nov. 02, 2013 | Nov. 02, 2013 | Oct. 27, 2012 | Aug. 29, 2013 | Aug. 29, 2013 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | |
2011 Share Repurchase Program [Member] | 2011 Share Repurchase Program [Member] | 2011 Share Repurchase Program [Member] | 2012 Share Repurchase Program [Member] | 2012 Share Repurchase Program [Member] | 2012 $50 Share Repurchase Program [Member] [Member] | 2012 $50 Share Repurchase Program [Member] [Member] | Retained Earnings [Member] | Retained Earnings [Member] | 2012 Share Repurchase Program [Member] | 2012 Share Repurchase Program [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Performance Awards Member | Performance Awards Member | Performance Awards Member | Performance Awards Member | ||||||
STOCKHOLDERS' EQUITY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $5,541,000 | $3,449,000 | $16,491,000 | $10,406,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,243,000 | $2,514,000 | $10,085,000 | $8,115,000 | $2,298,000 | $935,000 | $6,406,000 | $2,291,000 |
Stock Repurchased and Retired During Period, Shares | ' | ' | ' | ' | ' | 0 | 377,200 | ' | 1,097,100 | 0 | 558,000 | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Value | ' | ' | ' | ' | ' | 0 | 19,245,000 | ' | 54,714,000 | 0 | 28,428,000 | ' | 44,200,000 | 39,500,000 | 1,000,000 | 75,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount authorized | ' | ' | 100,000,000 | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares exchanged in payment of withholding taxes (in shares) | 1,800 | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation withholding tax payments | 132,000 | 57,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury Stock, Shares, Acquired | 7,600 | 14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury Stock, Value, Acquired, Cost Method | 394,000 | 675,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury Stock, Shares | 32,000 | 23,000 | 32,000 | 23,000 | 24,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury Stock, Value | 1,513,000 | 1,057,000 | 1,513,000 | 1,057,000 | 1,119,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | ' | ' | ' | ' | ' | ' | ' | ' | $25,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Share data in Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Feb. 02, 2013 |
Stock-based compensation expense | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '1 year | '3 years | ' |
Total stock- based compensation expense | $5,541,000 | $3,449,000 | $16,491,000 | $10,406,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Percentage of Target Shares Per Employee | ' | ' | 200.00% | ' | ' |
Tax benefit related to stock-based compensation | ' | ' | 6,500,000 | 4,100,000 | ' |
Cost of goods sold | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' |
Total stock- based compensation expense | 300,000 | 400,000 | 1,900,000 | 1,100,000 | ' |
sharesearnedopincmax [Domain] | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Percentage of Target Shares Per Employee | 200.00% | ' | ' | ' | ' |
sharesearnedopincmin [Domain] | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Minimum Percentage of Target Shares which Can be Earned | ' | ' | 0.00% | ' | ' |
Performance Awards Member | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | ' | ' | 10 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 7,600,000 | ' | 7,600,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 364 | ' | 364 | ' | 172 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $48.25 | ' | $48.25 | ' | $48.59 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | ' | ' | $47.25 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '1 year 7 months 12 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | 204 | ' | ' |
Total stock- based compensation expense | 2,298,000 | 935,000 | 6,406,000 | 2,291,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ' | $47.89 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | ' | ' | 2 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | ' | ' | $46.48 | ' | ' |
Performance Awards Member | impactofmodification [Member] | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' |
Total stock- based compensation expense | ' | ' | 1,700,000 | ' | ' |
Deferred and Restricted Stock (Deferred Awards) Member | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | ' | ' | 47 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $24,100,000 | ' | $24,100,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 694 | ' | 694 | ' | 560 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $49.10 | ' | $49.10 | ' | $49.53 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | ' | ' | $48.93 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '2 years 6 months 12 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | 372 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ' | $48.61 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | ' | ' | 191 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | ' | ' | $49.46 | ' | ' |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Feb. 02, 2013 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Nov. 02, 2013 |
Cost of Sales [Member] | Cost of Sales [Member] | Cost of Sales [Member] | Cost of Sales [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Performance Awards Member | Performance Awards Member | Performance Awards Member | Performance Awards Member | sharesearnedopincmax [Domain] | sharesearnedopincmin [Domain] | |||||
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $5,541,000 | $3,449,000 | $16,491,000 | $10,406,000 | $300,000 | $400,000 | $1,900,000 | $1,100,000 | ' | ' | $3,243,000 | $2,514,000 | $10,085,000 | $8,115,000 | $2,298,000 | $935,000 | $6,406,000 | $2,291,000 | ' | ' |
Vesting period (in years) | ' | ' | '1 year | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of Target Shares which can be earned by the participants (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% |
Maximum percentage of Target Shares that can be earned by the participants (as a percent) | ' | ' | 200.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | ' |
Percentage of Target Shares paid out if final operating income below threshold (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' |
Deferred and Performance Awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested awards at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 172 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 204 | ' | ' | ' |
Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -10 | ' | ' | ' |
Unvested awards at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 364 | ' | 364 | ' | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested awards at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $48.59 | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $47.89 | ' | ' | ' |
Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $46.48 | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $47.25 | ' | ' | ' |
Unvested awards at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $48.25 | ' | $48.25 | ' | ' | ' |
Unrecognized costs and period of recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,600,000 | ' | 7,600,000 | ' | ' | ' |
Weighted average period for recognition of unrecognized stock-based compensation expense (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 7 months 12 days | ' | ' | ' |
Number of Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | -48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 36 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $30.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $30.54 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $29.54 | $30.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the beginning of the period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 10 months 12 days | '3 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the end of the period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 10 months 12 days | '3 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the beginning of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | 1,633,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | 899,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | 13,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the end of the period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | $898,000 | $1,633,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NET_INCOME_LOSS_PER_COMMON_SHA2
NET INCOME (LOSS) PER COMMON SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Basic and diluted net income per common share | ' | ' | ' | ' |
Net income | $41,739 | $37,305 | $37,375 | $44,115 |
Basic weighted average common shares (in shares) | 22,337 | 24,086 | 22,632 | 24,290 |
Dilutive effect of stock awards (in shares) | 291 | 207 | 264 | 163 |
Diluted weighted average common shares (in shares) | 22,628 | 24,293 | 22,896 | 24,453 |
Antidilutive stock awards (in shares) | 0 | 3 | 42 | 7 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Feb. 02, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
netbookvalue | $168,400,000 | $166,100,000 | $168,400,000 | $166,100,000 | ' |
Property and equipment, gross | 819,908,000 | 872,758,000 | 819,908,000 | 872,758,000 | 843,956,000 |
Less accumulated depreciation and amortization | -501,887,000 | -536,805,000 | -501,887,000 | -536,805,000 | -513,855,000 |
Property and equipment, net | 318,021,000 | 335,953,000 | 318,021,000 | 335,953,000 | 330,101,000 |
Asset impairment charges | 0 | 539,000 | 21,766,000 | 2,069,000 | ' |
Number of underperforming stores | 75 | 2 | ' | 5 | ' |
Property and equipment, outstanding | ' | ' | 5,500,000 | 8,900,000 | 4,300,000 |
Land and land improvements | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property and equipment, gross | 3,403,000 | 3,403,000 | 3,403,000 | 3,403,000 | 3,403,000 |
Building and improvements | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property and Equipment, Useful Life (in years) | ' | ' | '20-25 yrs | ' | ' |
Property and equipment, gross | 35,548,000 | 35,548,000 | 35,548,000 | 35,548,000 | 35,548,000 |
Material handling equipment | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property and Equipment, Useful Life (in years) | ' | ' | '10-15 yrs | ' | ' |
Property and equipment, gross | 48,345,000 | 52,547,000 | 48,345,000 | 52,547,000 | 48,346,000 |
Leasehold improvements | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property and Equipment, Useful Life (in years) | ' | ' | 'Lease life | ' | ' |
Property and equipment, gross | 379,253,000 | 402,103,000 | 379,253,000 | 402,103,000 | 391,311,000 |
Store fixtures and equipment | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property and Equipment, Useful Life (in years) | ' | ' | '3-10 yrs | ' | ' |
Property and equipment, gross | 245,892,000 | 270,140,000 | 245,892,000 | 270,140,000 | 265,030,000 |
Capitalized software | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property and Equipment, Useful Life (in years) | ' | ' | '5-10 yrs | ' | ' |
Property and equipment, gross | 72,642,000 | 71,553,000 | 72,642,000 | 71,553,000 | 65,885,000 |
Construction in progress | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property and equipment, gross | 34,825,000 | 37,464,000 | 34,825,000 | 37,464,000 | 34,433,000 |
numberofunderperformstores [Domain] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Number of Stores | 110 | ' | 110 | ' | ' |
numberofstorestestedforimpairment [Domain] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Number of Stores | 1,066 | 1,004 | 1,066 | 1,004 | ' |
storeimpaiments [Domain] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Asset impairment charges | 12,700,000 | ' | ' | ' | ' |
fullyimpaird [Domain] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Number of underperforming stores | 48 | ' | ' | ' | ' |
partiallyimpaired [Domain] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Number of underperforming stores | 27 | ' | ' | ' | ' |
itimpaiments [Domain] [Domain] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Asset impairment charges | 9,100,000 | ' | ' | ' | ' |
sgawritedown [Domain] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Asset impairment charges | $1,200,000 | ' | ' | ' | ' |
CREDIT_FACILITY_Details
CREDIT FACILITY (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||||
In Millions, unless otherwise specified | Nov. 02, 2013 | Nov. 02, 2013 | Oct. 27, 2012 | Feb. 02, 2013 | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Aug. 31, 2010 |
Merchandise Letters of Credit | Merchandise Letters of Credit | Merchandise Letters of Credit | Standby Letters of Credit | Standby Letters of Credit | Standby Letters of Credit | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | 2011 Amendment | |||||
Prime rate | LIBOR | Merchandise Letters of Credit | Standby Letters of Credit | |||||||||||||
Credit facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sublimit Availability | $111.10 | $111.10 | $89.80 | $87.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit sublimit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125 | ' | ' | ' | ' | ' |
Borrowing capacity, accordion feature | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75 | ' | ' | ' | ' | ' |
Committed Portion Of Accordian Feature | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' |
Basis spread on variable rate, low end of range (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 1.50% | ' | ' | ' |
Basis spread on variable rate, high end of range (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | 1.75% | ' | ' | ' |
Debt Instrument, Description of Variable Rate Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one, two, three or six | ' | ' | ' |
Line of credit facility, unused line fee percentage (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' |
Letters of credit facility fee, low end of range (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | 1.00% | ' |
Letters of credit facility fee, high end of range (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.88% | 1.25% | ' |
Deferred financing costs paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 |
Deferred financing costs gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.7 | ' | ' | ' | ' | ' |
Deferred financing costs, remaining unamortized balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.4 | ' | ' | ' | ' | ' |
Letter of credit fees | 0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | 150 | 150 | 150 | 150 | ' | ' | ' | ' | ' | ' | 150 | ' | ' | ' | ' | ' |
Line of credit facility, current borrowing capacity | 150 | 150 | 150 | 150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | 3.7 | 27.1 | 24.6 | 10.2 | 10.6 | 10.6 | ' | ' | ' | ' | ' | ' |
Utilization of credit facility at end of period | 13.9 | 13.9 | 35.2 | 37.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Availability | 136.1 | 136.1 | 114.8 | 112.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at end of period (as a percent) | 3.80% | 3.80% | 4.00% | 3.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average loan balance during the period | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Highest end of day loan balance during the period | ' | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average interest rate (as a percent) | ' | 3.80% | 4.00% | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective tax rate from continuing operations (as a percent) | 32.30% | 30.30% | 31.40% | 30.70% |
Statement [Line Items] | ' | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $0.10 | $0.20 | $0.10 | $0.20 |
INTEREST_INCOME_EXPENSE_NET_De
INTEREST INCOME (EXPENSE), NET (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Components of interest income (expense), net | ' | ' | ' | ' |
Interest income | $290 | $234 | $792 | $685 |
Less: | ' | ' | ' | ' |
Interest expense - credit facilities | 33 | 39 | 93 | 115 |
Unused line fee | 74 | 100 | 214 | 324 |
Amortization of deferred financing costs | 91 | 91 | 273 | 273 |
Other interest and fees | 10 | 27 | 70 | 77 |
Total interest expense | 208 | 257 | 650 | 789 |
Interest (expense), net | $82 | ($23) | $142 | ($104) |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Feb. 02, 2013 | |
Segment Reporting [Abstract] | ' | ' | ' | ' | ' |
Percentage of entity-wide sales qualifying purchaser as major customer (as a percent) | ' | ' | 10.00% | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Business Exit Costs | $200,000 | $570,000 | ($762,000) | $4,466,000 | $6,800,000 |
Impairment of Long-Lived Assets Held-for-use | 0 | 539,000 | 21,766,000 | 2,069,000 | ' |
Restructuring Charges | 300,000 | ' | 2,500,000 | 3,900,000 | ' |
Net sales: | ' | ' | ' | ' | ' |
Total net sales | 492,680,000 | 500,928,000 | 1,298,292,000 | 1,300,262,000 | ' |
Gross Profit: | ' | ' | ' | ' | ' |
Total gross profit | 201,761,000 | 209,533,000 | 491,211,000 | 502,883,000 | ' |
Gross Margin: | ' | ' | ' | ' | ' |
Total Gross Margin (as a percent) | 41.00% | 41.80% | 37.80% | 38.70% | ' |
Operating income (loss): | ' | ' | ' | ' | ' |
Total operating income (loss) | 61,567,000 | 53,526,000 | 54,380,000 | 63,796,000 | ' |
Operating income (loss) as a percent of net sales: | ' | ' | ' | ' | ' |
Total operating income (loss) (as a percent) | 12.50% | 10.70% | 4.20% | 4.90% | ' |
Depreciation and amortization: | ' | ' | ' | ' | ' |
Total depreciation and amortization | 16,473,000 | 23,023,000 | 48,890,000 | 57,723,000 | ' |
Capital expenditures: | ' | ' | ' | ' | ' |
Total capital expenditures | 18,488,000 | 27,143,000 | 57,158,000 | 71,380,000 | ' |
Total assets: | ' | ' | ' | ' | ' |
Total assets | 974,717,000 | 959,011,000 | 974,717,000 | 959,011,000 | 923,410,000 |
The Children's Place Canada [Member] | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Asset Impairment Charges | ' | 1,000,000 | ' | ' | ' |
westcoastnortheastdc [Domain] | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Business Exit Costs | 200,000 | 600,000 | -800,000 | 4,500,000 | ' |
The Childrens Place US Member | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Asset Impairment Charges | 500,000 | ' | ' | 2,100,000 | ' |
impairedus [Domain] | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Impairment of Long-Lived Assets Held-for-use | ' | ' | 20,800,000 | ' | ' |
The Childrens Place US Member | ' | ' | ' | ' | ' |
Net sales: | ' | ' | ' | ' | ' |
Total net sales | 421,070,000 | 424,854,000 | 1,124,676,000 | 1,119,690,000 | ' |
Gross Profit: | ' | ' | ' | ' | ' |
Total gross profit | 168,753,000 | 173,384,000 | 419,243,000 | 425,394,000 | ' |
Gross Margin: | ' | ' | ' | ' | ' |
Total Gross Margin (as a percent) | 40.10% | 40.80% | 37.30% | 38.00% | ' |
Operating income (loss): | ' | ' | ' | ' | ' |
Total operating income (loss) | 49,199,000 | 40,407,000 | 42,178,000 | 49,274,000 | ' |
Operating income (loss) as a percent of net sales: | ' | ' | ' | ' | ' |
Total operating income (loss) (as a percent) | 11.70% | 9.50% | 3.80% | 4.40% | ' |
Depreciation and amortization: | ' | ' | ' | ' | ' |
Total depreciation and amortization | 14,584,000 | 19,497,000 | 43,065,000 | 48,220,000 | ' |
Capital expenditures: | ' | ' | ' | ' | ' |
Total capital expenditures | 17,117,000 | 24,783,000 | 49,391,000 | 60,073,000 | ' |
Total assets: | ' | ' | ' | ' | ' |
Total assets | 810,644,000 | 785,640,000 | 810,644,000 | 785,640,000 | 746,911,000 |
Number of Stores | 990 | 973 | 990 | 973 | ' |
The Children's Place Canada [Member] | ' | ' | ' | ' | ' |
Net sales: | ' | ' | ' | ' | ' |
Total net sales | 71,610,000 | 76,074,000 | 173,616,000 | 180,572,000 | ' |
Gross Profit: | ' | ' | ' | ' | ' |
Total gross profit | 33,008,000 | 36,149,000 | 71,968,000 | 77,489,000 | ' |
Gross Margin: | ' | ' | ' | ' | ' |
Total Gross Margin (as a percent) | 46.10% | 47.50% | 41.50% | 42.90% | ' |
Operating income (loss): | ' | ' | ' | ' | ' |
Total operating income (loss) | 12,368,000 | 13,119,000 | 12,202,000 | 14,522,000 | ' |
Operating income (loss) as a percent of net sales: | ' | ' | ' | ' | ' |
Total operating income (loss) (as a percent) | 17.30% | 17.20% | 7.00% | 8.00% | ' |
Depreciation and amortization: | ' | ' | ' | ' | ' |
Total depreciation and amortization | 1,889,000 | 3,526,000 | 5,825,000 | 9,503,000 | ' |
Capital expenditures: | ' | ' | ' | ' | ' |
Total capital expenditures | 1,371,000 | 2,360,000 | 7,767,000 | 11,307,000 | ' |
Total assets: | ' | ' | ' | ' | ' |
Total assets | $164,073,000 | $173,371,000 | $164,073,000 | $173,371,000 | $176,499,000 |
Number of Stores | 133 | 129 | 133 | 129 | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 1 Months Ended | 7 Months Ended | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Aug. 29, 2013 | Aug. 29, 2013 | Nov. 02, 2013 | Oct. 27, 2012 |
2012 Share Repurchase Program | 2012 Share Repurchase Program | 2012 Share Repurchase Program [Member] | 2012 Share Repurchase Program [Member] | |
Subsequent Events | ' | ' | ' | ' |
Number of additional shares repurchased (in shares) | 100,000 | ' | 1,097,100 | 0 |
Value of shares repurchased | $1,000 | $75,300 | $54,714 | $0 |