Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | |
3-May-14 | 30-May-14 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'CHILDRENS PLACE RETAIL STORES INC | ' |
Entity Central Index Key | '0001041859 | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 3-May-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 21,836,784 |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $131,432 | $173,997 | $186,260 |
Short-term investments | 64,000 | 62,500 | 15,000 |
Accounts receivable | 25,099 | 25,960 | 22,223 |
Inventories | 304,291 | 322,422 | 251,285 |
Prepaid expenses and other current assets | 40,007 | 33,582 | 36,327 |
Deferred income taxes | 12,933 | 10,859 | 10,518 |
Total current assets | 577,762 | 629,320 | 521,613 |
Long-term assets: | ' | ' | ' |
Property and equipment, net | 315,314 | 312,149 | 334,443 |
Deferred income taxes | 40,710 | 45,806 | 44,689 |
Other assets | 3,753 | 3,355 | 4,327 |
Total assets | 937,539 | 990,630 | 905,072 |
Current liabilities: | ' | ' | ' |
Accounts payable | 120,654 | 150,652 | 69,644 |
Income taxes payable | 786 | 1,039 | 6,076 |
Accrued expenses and other current liabilities | 110,351 | 119,658 | 101,094 |
Total current liabilities | 231,791 | 271,349 | 176,814 |
Long-term liabilities: | ' | ' | ' |
Deferred rent liabilities | 86,497 | 88,563 | 90,948 |
Other tax liabilities | 5,324 | 5,755 | 7,607 |
Other long-term liabilities | 8,514 | 8,185 | 8,293 |
Total liabilities | 332,126 | 373,852 | 283,662 |
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; 22,002, 22,230 and 22,872 issued; 21,961, 22,197 and 22,843 outstanding | 2,200 | 2,223 | 2,287 |
Additional paid-in capital | 224,727 | 226,521 | 217,447 |
Treasury stock, at cost (41, 33, and 29 shares) | -1,992 | -1,575 | -1,388 |
Deferred compensation | 1,992 | 1,575 | 1,388 |
Accumulated other comprehensive income | 290 | -1,529 | 12,040 |
Retained earnings | 378,196 | 389,563 | 389,636 |
Total stockholders' equity | 605,413 | 616,778 | 621,410 |
Total liabilities and stockholders' equity | $937,539 | $990,630 | $905,072 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | 3 Months Ended | ||
3-May-14 | Feb. 01, 2014 | 4-May-13 | |
Document Period End Date | 3-May-14 | ' | ' |
Common Stock, Par or Stated Value Per Share | $0.10 | $0.10 | $0.10 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 22,002,000 | 22,230,000 | 22,872,000 |
Common Stock, Shares, Outstanding | 21,961,000 | 22,197,000 | 22,843,000 |
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 | 41,000 | 33,000 | 29,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 |
Net sales | $410,149 | $423,164 |
Cost of sales | 261,888 | 259,896 |
Gross profit | 148,261 | 163,268 |
Selling, general and administrative expenses | 113,720 | 119,008 |
Business Exit Costs | 231 | -1,023 |
Depreciation and amortization | 14,227 | 16,824 |
Operating income (loss) | 20,083 | 28,459 |
Interest (expense), net | 19 | 60 |
Income (loss) from continuing operations before income taxes | 20,102 | 28,519 |
Provision (benefit) for income taxes | 6,506 | 9,247 |
Net income (loss) | $13,596 | $19,272 |
Basic earnings (loss) per share amounts | ' | ' |
Net income (loss) (in dollars per share) | $0.61 | $0.84 |
Basic weighted average common shares outstanding (in shares) | 22,150 | 23,043 |
Diluted earnings (loss) per share amounts | ' | ' |
Net income (loss) (in dollars per share) | $0.61 | $0.83 |
Diluted weighted average common shares outstanding (in shares) | 22,419 | 23,289 |
Common Stock, Dividends, Per Share, Cash Paid | $0.13 | ' |
Common Stock, Dividends, Per Share, Declared | ' | $0 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Net income | $13,596 | $19,272 |
Foreign currency translation adjustment | 1,819 | -1,218 |
Comprehensive income | $15,415 | $18,054 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | $13,596 | $19,272 |
Reconciliation of income from continuing operations to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 14,227 | 16,824 |
Stock-based compensation | 3,062 | 5,432 |
Excess tax benefits from stock-based compensation | -289 | -14 |
Deferred taxes | -2,758 | -1,851 |
Deferred rent expense and lease incentives | -2,554 | -2,821 |
Other | 455 | 2,568 |
Changes in operating assets and liabilities: | ' | ' |
Inventories | 18,626 | 15,329 |
Prepaid expenses and other assets | -1 | -4,366 |
Income taxes payable, net of prepayments | 249 | 8,732 |
Accounts payable and other current liabilities | -40,514 | -17,586 |
Deferred rent and other liabilities | 62 | -3,656 |
Total adjustments | -9,435 | 18,591 |
Net cash provided by operating activities | 4,161 | 37,863 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Property and equipment purchases, lease acquisition and software costs | -15,902 | -22,101 |
Purchase of company-owned life insurance policies | 6 | -11 |
Net cash used in investing activities | -17,396 | -22,112 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Borrowings under revolving credit facilities | 22,796 | 36,211 |
Repayments under revolving credit facilities | -22,796 | -36,211 |
Deferred financing costs | 306 | 0 |
Purchase and retirement of common stock, including transaction costs | -27,581 | -24,203 |
Payments of Ordinary Dividends, Common Stock | -2,938 | 0 |
Exercise of stock options | 53 | 1,169 |
Excess tax benefits from stock-based compensation | 289 | 14 |
Net cash provided by (used in) financing activities | -30,483 | -23,020 |
Effect of exchange rate changes on cash | 1,153 | -599 |
Net increase (decrease) in cash and cash equivalents | -42,565 | -7,868 |
Cash and cash equivalents, beginning of period | 173,997 | ' |
Cash and cash equivalents, end of period | 131,432 | 186,260 |
OTHER CASH FLOW INFORMATION: | ' | ' |
Net cash paid during the year for income taxes | 9,293 | 2,543 |
Cash paid during the year for interest | 147 | 99 |
Payments for (Proceeds from) Productive Assets | -2,604 | -287 |
Purchase of short-term investments | ($1,500) | $0 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
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 May 3, 2014 and May 4, 2013 and the results of its consolidated operations and cash flows for the thirteen weeks ended May 3, 2014 and May 4, 2013. The consolidated financial position as of February 1, 2014 was derived from audited financial statements. Due to the seasonal nature of the Company’s business, the results of operations for the thirteen weeks ended May 3, 2014 and May 4, 2013 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 1, 2014. | |||||||||||||
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: | |||||||||||||
• | First Quarter 2014 — The thirteen weeks ended May 3, 2014. | ||||||||||||
• | First Quarter 2013 — The thirteen weeks ended May 4, 2013. | ||||||||||||
• | 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. | ||||||||||||
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 $0.4 million, $0.3 million, and $0.3 million at May 3, 2014, February 1, 2014 and May 4, 2013, respectively. The cash surrender value of the COLIs, at fair value, was approximately $0.3 million, $0.3 million and $0.7 million at May 3, 2014, February 1, 2014 and May 4, 2013, respectively. Company stock was $2.0 million, $1.6 million, and $1.4 million at May 3, 2014, February 1, 2014 and May 4, 2013, 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 Company ceased operations at the West Coast DC in May 2012. The lease of the West Coast DC expires in March 2016 and the Company has subleased most of this facility through March 2016. | |||||||||||||
During the third quarter of fiscal 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 during the second quarter of fiscal 2013 the Company executed a sublet arrangement for this facility through the end of the Company's lease term. | |||||||||||||
The following table provides details of the remaining accruals for the West Coast DC and Northeast DC as of May 3, 2014, of which approximately $0.9 million was included in accrued expenses and other current liabilities and approximately $1.5 million was included in other long-term liabilities (dollars in thousands): | |||||||||||||
Other Associated Costs | Lease Termination Costs | Total | |||||||||||
Balance at February 1, 2014 | $ | — | $ | 2,679 | $ | 2,679 | |||||||
Restructuring costs | 184 | 47 | 231 | ||||||||||
Payments and reductions | (184 | ) | (276 | ) | (460 | ) | |||||||
Balance at May 3, 2014 | $ | — | $ | 2,450 | $ | 2,450 | |||||||
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. | |||||||||||||
The Company’s assets measured at fair value on a nonrecurring basis include long-lived assets. The Company reviews the carrying amounts of such assets when events indicate that their carrying amounts may not be recoverable. Any resulting asset impairment would require that the asset be recorded at its fair value. The resulting fair value measurements of the assets are considered to be Level 3 inputs. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended | ||||||||||||||
3-May-14 | |||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||
STOCKHOLDERS' EQUITY | ' | ||||||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||||||
The Company's Board of Directors has authorized the following share repurchase programs: (1) $100 million on November 26, 2012 (the "2012 Share Repurchase Program") and (2) $100 million on March 4, 2014 (the "2014 Share Repurchase Program"). The 2012 Share Repurchase Program was completed during the First Quarter 2014. At May 3, 2014, there was approximately $88.2 million remaining on the 2014 Share Repurchase Program. Under the 2014 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): | |||||||||||||||
Thirteen Weeks Ended | |||||||||||||||
May 3, 2014 | May 4, 2013 | ||||||||||||||
Shares | Value | Shares | Value | ||||||||||||
Shares repurchases related to: | |||||||||||||||
2012 Share Repurchase Program | 281.6 | $ | 14,671 | 512.3 | $ | 24,196 | |||||||||
2014 Share Repurchase Program (1) | 239.4 | 11,810 | — | — | |||||||||||
Withholding taxes | 22.9 | 1,100 | 1 | 46 | |||||||||||
Shares acquired and held in treasury | 8.1 | $ | 417 | 5.2 | $ | 269 | |||||||||
-1 | Subsequent to May 3, 2014 and through May 30, 2014, the Company repurchased 0.1 million shares for approximately $5.9 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 the First Quarter 2014 and the First Quarter 2013, approximately $22.0 million and $19.3 million, respectively, were charged to retained earnings. | |||||||||||||||
In the First Quarter 2014 the Company's Board of Directors authorized a quarterly cash dividend. The First Quarter 2014 dividend of $0.1325 per share was declared on March 4, 2014 and was payable to shareholders of record on the close of business on March 27, 2014 and was paid on April 17, 2014. Related to this dividend $3.0 million was charged to retained earnings, of which $2.9 million related to cash dividends paid and $0.1 million related to dividend share equivalents on unvested shares. The Company's Board of Directors declared a quarterly cash dividend of $0.1325 per share to be paid on July 17, 2014 to shareholders of record on the close of business on June 27, 2014. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Company’s Board of Directors based on a number of factors, including business and market conditions, the Company’s future financial performance and other investment priorities. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
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 | |||||||||||||
May 3, | May 4, | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred Awards | $ | 2,983 | $ | 3,531 | |||||||||
Performance Awards | 79 | 1,901 | |||||||||||
Total stock-based compensation expense (1) | $ | 3,062 | $ | 5,432 | |||||||||
____________________________________________ | |||||||||||||
-1 | During the First Quarter 2014 and the First Quarter 2013, approximately $0.5 million and $0.7 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 $1.2 million and $2.2 million for the First Quarter 2014 and First Quarter 2013, respectively. | |||||||||||||
Awards Granted During the First Quarter 2014 | |||||||||||||
The Company granted Deferred Awards and Performance Awards to various executives and members of our Board of Directors during the First Quarter 2014. Awards were also issued in connection with 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 after one year. In general, the Performance Awards granted to executives other than our Chief Executive Officer and President have a three-year cumulative performance period, and, if earned, vest upon completion of the three-year performance period. The Performance Award granted to our Chief Executive Officer and President, if earned, has a one year performance and vest period. Depending on the final adjusted operating income for the one-year performance period, the percentage of Target Shares earned can be 0% and range up to 200%. | |||||||||||||
Changes in the Company’s Unvested Stock Awards during the First Quarter 2014 | |||||||||||||
Deferred Awards | |||||||||||||
Number of | Weighted | ||||||||||||
Shares | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
(in thousands) | |||||||||||||
Unvested Deferred Awards, beginning of period | 691 | $ | 49.27 | ||||||||||
Granted | 15 | 51.11 | |||||||||||
Vested | (206 | ) | 48.59 | ||||||||||
Forfeited | (14 | ) | 47.91 | ||||||||||
Unvested Deferred Awards, end of period | 486 | $ | 49.65 | ||||||||||
Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $18.2 million as of May 3, 2014, which will be recognized over a weighted average period of approximately 2.3 years. | |||||||||||||
Performance Awards | |||||||||||||
Number of | Weighted | ||||||||||||
Shares (1) | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
(in thousands) | |||||||||||||
Unvested Performance Awards, beginning of period | 267 | $ | 47.67 | ||||||||||
Granted | 98 | 50.83 | |||||||||||
Vested shares, including shares vested in excess of target | (107 | ) | 46.34 | ||||||||||
Forfeited | (4 | ) | 47.06 | ||||||||||
Unvested Performance Awards, end of period | 254 | $ | 49.46 | ||||||||||
____________________________________________ | |||||||||||||
-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 adjusted operating income estimates as they occur. Total unrecognized stock-based compensation expense related to unvested Performance Awards approximated $7.5 million as of May 3, 2014, which will be recognized over a weighted average period of approximately 1.1 years. | |||||||||||||
Stock Options | |||||||||||||
At May 3, 2014, there were no unvested stock options. | |||||||||||||
Outstanding Stock Options | |||||||||||||
Changes in the Company’s outstanding stock options for the First Quarter 2014 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 | 34 | $ | 28.77 | 3.8 | $ | 817 | |||||||
Exercised | (2 | ) | 23.69 | N/A | 62 | ||||||||
Options outstanding and exercisable, end of period | 32 | $ | 29.12 | 3.8 | $ | 578 | |||||||
NET_INCOME_LOSS_PER_COMMON_SHA
NET INCOME (LOSS) PER COMMON SHARE | 3 Months Ended | |||||||
3-May-14 | ||||||||
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 | ||||||||
May 3, 2014 | May 4, 2013 | |||||||
Net income | $ | 13,596 | $ | 19,272 | ||||
Basic weighted average common shares | 22,150 | 23,043 | ||||||
Dilutive effect of stock awards | 269 | 246 | ||||||
Diluted weighted average common shares | 22,419 | 23,289 | ||||||
Antidilutive stock awards | 1 | 128 | ||||||
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 | 3 Months Ended | |||||||||||||
3-May-14 | ||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||
PROPERTY AND EQUIPMENT | ' | |||||||||||||
PROPERTY AND EQUIPMENT | ||||||||||||||
Property and equipment consist of the following (in thousands): | ||||||||||||||
Asset | May 3, 2014 | February 1, 2014 | May 4, 2013 | |||||||||||
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 | 48,479 | 48,345 | 48,454 | ||||||||||
Leasehold improvements | 3-15 yrs | 353,164 | 350,451 | 395,391 | ||||||||||
Store fixtures and equipment | 3-10 yrs | 236,177 | 234,151 | 253,828 | ||||||||||
Capitalized software | 3-10 yrs | 64,787 | 63,874 | 74,457 | ||||||||||
Construction in progress (1) | — | 44,070 | 43,213 | 29,145 | ||||||||||
785,628 | 778,985 | 840,226 | ||||||||||||
Accumulated depreciation and amortization | (470,314 | ) | (466,836 | ) | (505,783 | ) | ||||||||
Property and equipment, net | $ | 315,314 | $ | 312,149 | $ | 334,443 | ||||||||
-1 | The majority of the Construction in progress at each reporting period relates to the Company's new enterprise resource planning system. | |||||||||||||
At May 3, 2014, the Company performed impairment testing on 1,040 stores with a total net book value of approximately $146.8 million. During the First Quarter 2014, the Company recorded no impairment charges. | ||||||||||||||
At May 4, 2013, the Company performed impairment testing on 981 stores with a total net book value of approximately $159.7 million. During the First Quarter 2013, the Company recorded no impairment charges. | ||||||||||||||
As of May 3, 2014, February 1, 2014 and May 4, 2013, the Company had approximately $7.6 million, $10.2 million and $4.0 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 | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
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 was amended and restated on March 4, 2014 to incorporate all amendments, and the provisions below reflect the amended and restated Credit Agreement. | ||||||||||||
The Credit Agreement, which expires in August 2018, consists of a $200 million asset based revolving credit facility, with a $50 million sublimit for standby and documentary letters of credit and an uncommitted accordion feature that could provide up to $25 million of additional availability. 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 conditions 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 March 4, 2014, the Credit Agreement was amended to permit the payment of dividends, subject to certain conditions, to increase the revolving credit limit from $150 million to its current $200 million and to extend the term from August 2017 to August 2018, and was restated to incorporate all prior amendments. In conjunction with this amendment and restatement, the Company paid approximately $0.3 million in additional deferred financing costs. | ||||||||||||
As of May 3, 2014, the Company has capitalized an aggregate of approximately $4.0 million in deferred financing costs related to the Credit Agreement. The unamortized balance of deferred financing costs at May 3, 2014 was approximately $1.5 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: | ||||||||||||
May 3, | February 1, | May 4, | ||||||||||
2014 | 2014 | 2013 | ||||||||||
Credit facility maximum | $ | 200 | $ | 150 | $ | 150 | ||||||
Borrowing base | 200 | 150 | 150 | |||||||||
Outstanding borrowings | — | — | — | |||||||||
Letters of credit outstanding—merchandise | 0.9 | 1.2 | 28 | |||||||||
Letters of credit outstanding—standby | 9.1 | 9.9 | 11.2 | |||||||||
Utilization of credit facility at end of period | 10 | 11.1 | 39.2 | |||||||||
Availability (1) | $ | 190 | $ | 138.9 | $ | 110.8 | ||||||
Interest rate at end of period | 3.8 | % | 3.8 | % | 3.8 | % | ||||||
First Quarter 2014 | Fiscal | First Quarter 2013 | ||||||||||
2013 | ||||||||||||
Average end of day loan balance during the period | $ | 1.1 | $ | — | $ | — | ||||||
Highest end of day loan balance during the period | 12.7 | 10.4 | — | |||||||||
Average interest rate | 3.8 | % | 3.8 | % | 3.8 | % | ||||||
____________________________________________ | ||||||||||||
-1 | The sublimit availability for the letters of credit was $40.0 million, $113.9 million, and $85.8 million at May 3, 2014, February 1, 2014, and May 4, 2013, respectively. | |||||||||||
Letter of credit fees were less than $0.1 million in both the First Quarter 2014 and the First Quarter 2013 and are substantially included in cost of sales |
LEGAL_AND_REGULATORY_MATTERS
LEGAL AND REGULATORY MATTERS | 3 Months Ended |
3-May-14 | |
LEGAL AND REGULATORY MATTERS [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
LEGAL AND REGULATORY MATTERS | |
During the First Quarter 2014, 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 1, 2014. | |
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 adverse effect on the Company's financial position, results of operations or cash flows. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
3-May-14 | |
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 basis 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 was 32.4% during each of the First Quarter 2014 and the First Quarter 2013. During each of the First Quarter 2014 and the First Quarter 2013, the Company recognized less than $0.1 million 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 2008. The Company, with certain exceptions, is no longer subject to income tax examinations by state and local or foreign tax authorities for tax years through fiscal 2009. | |
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 | 3 Months Ended | |||||||
3-May-14 | ||||||||
Other Income and Expenses [Abstract] | ' | |||||||
INTEREST INCOME (EXPENSE), NET | ' | |||||||
Thirteen Weeks Ended | ||||||||
May 3, | May 4, | |||||||
2014 | 2013 | |||||||
Interest income | $ | 290 | $ | 251 | ||||
Less: | ||||||||
Interest expense – credit facilities | 38 | 26 | ||||||
Unused line fee | 109 | 74 | ||||||
Amortization of deferred financing fees | 88 | 91 | ||||||
Other interest and fees | 36 | — | ||||||
Total interest expense | 271 | 191 | ||||||
Interest income (expense), net | $ | 19 | $ | 60 | ||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
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 and U.S. revenue from the Company's U.S. wholesale partners. 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 to 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 May 3, 2014, The Children’s Place U.S. operated 972 stores and The Children’s Place International operated 134 stores. As of May 4, 2013, The Children’s Place U.S. operated 980 stores and The Children’s Place International operated 131 stores. | ||||||||||||
The following tables provide segment level financial information (dollars in thousands): | ||||||||||||
Thirteen Weeks Ended | ||||||||||||
May 3, | May 4, | |||||||||||
2014 | 2013 | |||||||||||
Net sales: | ||||||||||||
The Children’s Place U.S. | $ | 366,132 | $ | 373,653 | ||||||||
The Children’s Place International (1) | 44,017 | 49,511 | ||||||||||
Total net sales | $ | 410,149 | $ | 423,164 | ||||||||
Gross profit: | ||||||||||||
The Children’s Place U.S. | $ | 134,195 | $ | 143,936 | ||||||||
The Children’s Place International | 14,066 | 19,332 | ||||||||||
Total gross profit | $ | 148,261 | $ | 163,268 | ||||||||
Gross Margin: | ||||||||||||
The Children’s Place U.S. | 36.7 | % | 38.5 | % | ||||||||
The Children’s Place International | 32 | % | 39 | % | ||||||||
Total gross margin | 36.1 | % | 38.6 | % | ||||||||
Operating income: | ||||||||||||
The Children’s Place U.S. (2) | $ | 22,073 | $ | 27,935 | ||||||||
The Children’s Place International | (1,990 | ) | 524 | |||||||||
Total operating income | $ | 20,083 | $ | 28,459 | ||||||||
Operating income as a percent of net sales: | ||||||||||||
The Children’s Place U.S. | 6 | % | 7.5 | % | ||||||||
The Children’s Place International | (4.5 | )% | 1.1 | % | ||||||||
Total operating income | 4.9 | % | 6.7 | % | ||||||||
Depreciation and amortization: | ||||||||||||
The Children’s Place U.S. | $ | 12,372 | $ | 14,559 | ||||||||
The Children’s Place International | 1,855 | 2,265 | ||||||||||
Total depreciation and amortization | $ | 14,227 | $ | 16,824 | ||||||||
Capital expenditures: | ||||||||||||
The Children’s Place U.S. | $ | 13,839 | $ | 17,974 | ||||||||
The Children’s Place International | 2,063 | 4,127 | ||||||||||
Total capital expenditures | $ | 15,902 | $ | 22,101 | ||||||||
____________________________________________ | ||||||||||||
-1 | Net sales from The Children's Place International are primarily derived from revenues from Canadian operations. | |||||||||||
-2 | Includes other costs (income) associated with the closures of the West Coast DC and Northeast DC of $0.2 million and $(1.0) million for the First Quarter 2014 and First Quarter 2013, respectively. Also includes additional SG&A costs incurred related to restructuring, severance and reorganizations of approximately $2.3 million and $0.5 million for the First Quarter 2014 and First Quarter 2013, respectively. | |||||||||||
May 3, 2014 | February 1, 2014 | May 4, 2013 | ||||||||||
Total assets: | ||||||||||||
The Children’s Place U.S. | $ | 780,816 | $ | 824,893 | $ | 750,378 | ||||||
The Children’s Place International | 156,723 | 165,737 | 154,694 | |||||||||
Total assets | $ | 937,539 | $ | 990,630 | $ | 905,072 | ||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
3-May-14 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
SUBSEQUENT EVENTS | |
Subsequent to May 3, 2014 and through May 30, 2014, the Company repurchased 0.1 million shares for approximately $5.9 million, which brought total shares purchased under the 2014 Share Repurchase Program to approximately $17.7 million. | |
The Company's Board of Directors declared a quarterly cash dividend of $0.1325 per share to be paid on July 17, 2014 to shareholders of record on the close of business on June 27, 2014. | |
On May 4, 2014 the Company successfully implemented its new SAP enterprise resource planning system. This system will serve as the core of the Company's transformation initiatives going forward. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
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 Company ceased operations at the West Coast DC in May 2012. The lease of the West Coast DC expires in March 2016 and the Company has subleased most of this facility through March 2016. | |||||||||||||
During the third quarter of fiscal 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 during the second quarter of fiscal 2013 the Company executed a sublet arrangement for this facility through the end of the Company's lease term. | |||||||||||||
The following table provides details of the remaining accruals for the West Coast DC and Northeast DC as of May 3, 2014, of which approximately $0.9 million was included in accrued expenses and other current liabilities and approximately $1.5 million was included in other long-term liabilities (dollars in thousands): | |||||||||||||
Other Associated Costs | Lease Termination Costs | Total | |||||||||||
Balance at February 1, 2014 | $ | — | $ | 2,679 | $ | 2,679 | |||||||
Restructuring costs | 184 | 47 | 231 | ||||||||||
Payments and reductions | (184 | ) | (276 | ) | (460 | ) | |||||||
Balance at May 3, 2014 | $ | — | $ | 2,450 | $ | 2,450 | |||||||
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 $0.4 million, $0.3 million, and $0.3 million at May 3, 2014, February 1, 2014 and May 4, 2013, respectively. The cash surrender value of the COLIs, at fair value, was approximately $0.3 million, $0.3 million and $0.7 million at May 3, 2014, February 1, 2014 and May 4, 2013, respectively. Company stock was $2.0 million, $1.6 million, and $1.4 million at May 3, 2014, February 1, 2014 and May 4, 2013, respectively | |||||||||||||
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) | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
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 May 3, 2014, of which approximately $0.9 million was included in accrued expenses and other current liabilities and approximately $1.5 million was included in other long-term liabilities (dollars in thousands): | |||||||||||||
Other Associated Costs | Lease Termination Costs | Total | |||||||||||
Balance at February 1, 2014 | $ | — | $ | 2,679 | $ | 2,679 | |||||||
Restructuring costs | 184 | 47 | 231 | ||||||||||
Payments and reductions | (184 | ) | (276 | ) | (460 | ) | |||||||
Balance at May 3, 2014 | $ | — | $ | 2,450 | $ | 2,450 | |||||||
STOCKHOLDERS_EQUITY_Share_Repu
STOCKHOLDERS' EQUITY Share Repurchase (Tables) | 3 Months Ended | ||||||||||||||
3-May-14 | |||||||||||||||
Stockholders' Equity Attributable to Parent [Abstract] | ' | ||||||||||||||
Schedule of Repurchase Agreements [Table Text Block] | ' | ||||||||||||||
The following table summarizes the Company's share repurchases (in thousands): | |||||||||||||||
Thirteen Weeks Ended | |||||||||||||||
May 3, 2014 | May 4, 2013 | ||||||||||||||
Shares | Value | Shares | Value | ||||||||||||
Shares repurchases related to: | |||||||||||||||
2012 Share Repurchase Program | 281.6 | $ | 14,671 | 512.3 | $ | 24,196 | |||||||||
2014 Share Repurchase Program (1) | 239.4 | 11,810 | — | — | |||||||||||
Withholding taxes | 22.9 | 1,100 | 1 | 46 | |||||||||||
Shares acquired and held in treasury | 8.1 | $ | 417 | 5.2 | $ | 269 | |||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of stock-based compensation expense | ' | ||||||||||||
Thirteen Weeks Ended | |||||||||||||
May 3, | May 4, | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred Awards | $ | 2,983 | $ | 3,531 | |||||||||
Performance Awards | 79 | 1,901 | |||||||||||
Total stock-based compensation expense (1) | $ | 3,062 | $ | 5,432 | |||||||||
Schedule of changes in unvested deferred awards | ' | ||||||||||||
Number of | Weighted | ||||||||||||
Shares | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
(in thousands) | |||||||||||||
Unvested Deferred Awards, beginning of period | 691 | $ | 49.27 | ||||||||||
Granted | 15 | 51.11 | |||||||||||
Vested | (206 | ) | 48.59 | ||||||||||
Forfeited | (14 | ) | 47.91 | ||||||||||
Unvested Deferred Awards, end of period | 486 | $ | 49.65 | ||||||||||
Schedule of unvested performance awards | ' | ||||||||||||
Number of | Weighted | ||||||||||||
Shares (1) | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
(in thousands) | |||||||||||||
Unvested Performance Awards, beginning of period | 267 | $ | 47.67 | ||||||||||
Granted | 98 | 50.83 | |||||||||||
Vested shares, including shares vested in excess of target | (107 | ) | 46.34 | ||||||||||
Forfeited | (4 | ) | 47.06 | ||||||||||
Unvested Performance Awards, end of period | 254 | $ | 49.46 | ||||||||||
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 | 34 | $ | 28.77 | 3.8 | $ | 817 | |||||||
Exercised | (2 | ) | 23.69 | N/A | 62 | ||||||||
Options outstanding and exercisable, end of period | 32 | $ | 29.12 | 3.8 | $ | 578 | |||||||
NET_INCOME_LOSS_PER_COMMON_SHA1
NET INCOME (LOSS) PER COMMON SHARE (Tables) | 3 Months Ended | |||||||
3-May-14 | ||||||||
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 | ||||||||
May 3, 2014 | May 4, 2013 | |||||||
Net income | $ | 13,596 | $ | 19,272 | ||||
Basic weighted average common shares | 22,150 | 23,043 | ||||||
Dilutive effect of stock awards | 269 | 246 | ||||||
Diluted weighted average common shares | 22,419 | 23,289 | ||||||
Antidilutive stock awards | 1 | 128 | ||||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended | |||||||||||||
3-May-14 | ||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||
Property and equipment | ' | |||||||||||||
Asset | May 3, 2014 | February 1, 2014 | May 4, 2013 | |||||||||||
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 | 48,479 | 48,345 | 48,454 | ||||||||||
Leasehold improvements | 3-15 yrs | 353,164 | 350,451 | 395,391 | ||||||||||
Store fixtures and equipment | 3-10 yrs | 236,177 | 234,151 | 253,828 | ||||||||||
Capitalized software | 3-10 yrs | 64,787 | 63,874 | 74,457 | ||||||||||
Construction in progress (1) | — | 44,070 | 43,213 | 29,145 | ||||||||||
785,628 | 778,985 | 840,226 | ||||||||||||
Accumulated depreciation and amortization | (470,314 | ) | (466,836 | ) | (505,783 | ) | ||||||||
Property and equipment, net | $ | 315,314 | $ | 312,149 | $ | 334,443 | ||||||||
CREDIT_FACILITY_Tables
CREDIT FACILITY (Tables) | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Components of credit facility | ' | |||||||||||
May 3, | February 1, | May 4, | ||||||||||
2014 | 2014 | 2013 | ||||||||||
Credit facility maximum | $ | 200 | $ | 150 | $ | 150 | ||||||
Borrowing base | 200 | 150 | 150 | |||||||||
Outstanding borrowings | — | — | — | |||||||||
Letters of credit outstanding—merchandise | 0.9 | 1.2 | 28 | |||||||||
Letters of credit outstanding—standby | 9.1 | 9.9 | 11.2 | |||||||||
Utilization of credit facility at end of period | 10 | 11.1 | 39.2 | |||||||||
Availability (1) | $ | 190 | $ | 138.9 | $ | 110.8 | ||||||
Interest rate at end of period | 3.8 | % | 3.8 | % | 3.8 | % | ||||||
First Quarter 2014 | Fiscal | First Quarter 2013 | ||||||||||
2013 | ||||||||||||
Average end of day loan balance during the period | $ | 1.1 | $ | — | $ | — | ||||||
Highest end of day loan balance during the period | 12.7 | 10.4 | — | |||||||||
Average interest rate | 3.8 | % | 3.8 | % | 3.8 | % | ||||||
____________________________________________ | ||||||||||||
-1 | The sublimit availability for the letters of credit was $40.0 million, $113.9 million, and $85.8 million at May 3, 2014, February 1, 2014, and May 4, 2013, respectively. |
INTEREST_INCOME_EXPENSE_NET_Ta
INTEREST INCOME (EXPENSE), NET (Tables) | 3 Months Ended | |||||||
3-May-14 | ||||||||
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 | ||||||||
May 3, | May 4, | |||||||
2014 | 2013 | |||||||
Interest income | $ | 290 | $ | 251 | ||||
Less: | ||||||||
Interest expense – credit facilities | 38 | 26 | ||||||
Unused line fee | 109 | 74 | ||||||
Amortization of deferred financing fees | 88 | 91 | ||||||
Other interest and fees | 36 | — | ||||||
Total interest expense | 271 | 191 | ||||||
Interest income (expense), net | $ | 19 | $ | 60 | ||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||||||
3-May-14 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Schedule of segment level financial information | ' | |||||||||||
Thirteen Weeks Ended | ||||||||||||
May 3, | May 4, | |||||||||||
2014 | 2013 | |||||||||||
Net sales: | ||||||||||||
The Children’s Place U.S. | $ | 366,132 | $ | 373,653 | ||||||||
The Children’s Place International (1) | 44,017 | 49,511 | ||||||||||
Total net sales | $ | 410,149 | $ | 423,164 | ||||||||
Gross profit: | ||||||||||||
The Children’s Place U.S. | $ | 134,195 | $ | 143,936 | ||||||||
The Children’s Place International | 14,066 | 19,332 | ||||||||||
Total gross profit | $ | 148,261 | $ | 163,268 | ||||||||
Gross Margin: | ||||||||||||
The Children’s Place U.S. | 36.7 | % | 38.5 | % | ||||||||
The Children’s Place International | 32 | % | 39 | % | ||||||||
Total gross margin | 36.1 | % | 38.6 | % | ||||||||
Operating income: | ||||||||||||
The Children’s Place U.S. (2) | $ | 22,073 | $ | 27,935 | ||||||||
The Children’s Place International | (1,990 | ) | 524 | |||||||||
Total operating income | $ | 20,083 | $ | 28,459 | ||||||||
Operating income as a percent of net sales: | ||||||||||||
The Children’s Place U.S. | 6 | % | 7.5 | % | ||||||||
The Children’s Place International | (4.5 | )% | 1.1 | % | ||||||||
Total operating income | 4.9 | % | 6.7 | % | ||||||||
Depreciation and amortization: | ||||||||||||
The Children’s Place U.S. | $ | 12,372 | $ | 14,559 | ||||||||
The Children’s Place International | 1,855 | 2,265 | ||||||||||
Total depreciation and amortization | $ | 14,227 | $ | 16,824 | ||||||||
Capital expenditures: | ||||||||||||
The Children’s Place U.S. | $ | 13,839 | $ | 17,974 | ||||||||
The Children’s Place International | 2,063 | 4,127 | ||||||||||
Total capital expenditures | $ | 15,902 | $ | 22,101 | ||||||||
____________________________________________ | ||||||||||||
-1 | Net sales from The Children's Place International are primarily derived from revenues from Canadian operations. | |||||||||||
-2 | Includes other costs (income) associated with the closures of the West Coast DC and Northeast DC of $0.2 million and $(1.0) million for the First Quarter 2014 and First Quarter 2013, respectively. Also includes additional SG&A costs incurred related to restructuring, severance and reorganizations of approximately $2.3 million and $0.5 million for the First Quarter 2014 and First Quarter 2013, respectively. | |||||||||||
May 3, 2014 | February 1, 2014 | May 4, 2013 | ||||||||||
Total assets: | ||||||||||||
The Children’s Place U.S. | $ | 780,816 | $ | 824,893 | $ | 750,378 | ||||||
The Children’s Place International | 156,723 | 165,737 | 154,694 | |||||||||
Total assets | $ | 937,539 | $ | 990,630 | $ | 905,072 | ||||||
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) (USD $) | 3 Months Ended | ||
3-May-14 | 4-May-13 | Feb. 01, 2014 | |
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 | $400,000 | $300,000 | $300,000 |
Cash Surrender Value of Life Insurance | 300,000 | ' | ' |
Deferred compensation - Company stock | -1,992,000 | -1,388,000 | -1,575,000 |
Business Exit Costs | $231,000 | ($1,023,000) | ' |
BASIS_OF_PRESENTATION_Details_
BASIS OF PRESENTATION (Details 2) (USD $) | 3 Months Ended | ||
3-May-14 | 4-May-13 | Feb. 01, 2014 | |
Accounts Payable and Accrued Liabilities, Current | $110,351,000 | $101,094,000 | $119,658,000 |
Business Exit Costs | 231,000 | -1,023,000 | ' |
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 | 400,000 | 300,000 | 300,000 |
Cash Surrender Value of Life Insurance | 300,000 | ' | ' |
Other Liabilities, Noncurrent | 8,514,000 | 8,293,000 | 8,185,000 |
onetimeterminatonbenefits [Domain] | ' | ' | ' |
accruedexitcostsadditions | 184,000 | ' | 0 |
paymentsandreduction | -184,000 | ' | ' |
accruedexitcostsonetimebenefits | 0 | ' | ' |
leastterminationcosts [Domain] | ' | ' | ' |
Accounts Payable and Accrued Liabilities, Current | 900,000 | ' | ' |
accruedexitcostsadditions | 47,000 | ' | 2,679,000 |
paymentsandreduction | -276,000 | ' | ' |
Capital Leases, Future Minimum Payments Due, Current | 2,450,000 | ' | ' |
Other Liabilities, Noncurrent | 1,500,000 | ' | ' |
totaladdsleasetermandonetimebenefits [Domain] | ' | ' | ' |
accruedexitcostsadditions | 231,000 | ' | 2,679,000 |
paymentsandreduction | -460,000 | ' | ' |
totalexitcostaccrual | $2,450,000 | ' | ' |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||
Jul. 17, 2014 | 3-May-14 | 4-May-13 | Feb. 01, 2014 | |
STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | $3,062,000 | $5,432,000 | ' |
Amount authorized | ' | 100,000,000 | ' | ' |
Number of shares exchanged in payment of withholding taxes (in shares) | ' | 22,900 | 1,000 | ' |
Share-based compensation withholding tax payments | ' | 1,100,000 | 46,000 | ' |
Treasury Stock, Shares, Acquired | ' | 8,100 | 5,200 | ' |
Treasury Stock, Value, Acquired, Cost Method | ' | 417,000 | 269,000 | ' |
Treasury Stock, Shares | ' | 41,000 | 29,000 | 33,000 |
Treasury Stock, Value | ' | 1,992,000 | 1,388,000 | 1,575,000 |
Common Stock, Dividends, Per Share, Cash Paid | $0.13 | $0.13 | ' | ' |
2014 Share Repurchase Program [Member] [Member] | ' | ' | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | ' | 239,400 | 0 | ' |
Stock Repurchased and Retired During Period, Value | ' | 11,810,000 | 0 | ' |
2014 Share Repurchase Program [Member] [Domain] | ' | ' | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | ' | 88,200,000 | ' | ' |
2012 Share Repurchase Program [Member] | ' | ' | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | ' | 281,600 | 512,300 | ' |
Stock Repurchased and Retired During Period, Value | ' | 14,671,000 | 24,196,000 | ' |
Retained Earnings [Member] | ' | ' | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Value | ' | 22,000,000 | 19,300,000 | ' |
Dividends | ' | 3,000,000 | ' | ' |
Dividends, Common Stock, Cash | ' | 2,900,000 | ' | ' |
Dividendsunvestedshares | ' | 100,000 | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | 2,983,000 | 3,531,000 | ' |
Performance Awards Member | ' | ' | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | $79,000 | $1,901,000 | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 | Feb. 01, 2014 |
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 | $3,062,000 | $5,432,000 | ' |
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 | 1,200,000 | 2,200,000 | ' |
Cost of goods sold | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' |
Total stock- based compensation expense | 500,000 | 700,000 | ' |
Performance Awards Member | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 4 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 7,500,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 254 | ' | 267 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $49.46 | ' | $47.67 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $47.06 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | '1 year 1 month 12 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 98 | ' | ' |
Total stock- based compensation expense | 79,000 | 1,901,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $50.83 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 107 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $46.34 | ' | ' |
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 | 14 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $18,200,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 486 | ' | 691 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $49.65 | ' | $49.27 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $47.91 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | '2 years 3 months 12 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 15 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $51.11 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 206 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $48.59 | ' | ' |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||
Share data in Thousands, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 | 3-May-14 | 4-May-13 | 3-May-14 | Feb. 01, 2014 | 3-May-14 | 4-May-13 | 3-May-14 | 4-May-13 |
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] | Performance Awards Member | Performance Awards Member | |||
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $3,062,000 | $5,432,000 | $500,000 | $700,000 | ' | ' | $2,983,000 | $3,531,000 | $79,000 | $1,901,000 |
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% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Target Shares paid out if final operating income below threshold (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' |
Unvested awards at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 267 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | ' | ' | ' | ' | ' | ' | 98 | ' |
Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | -107 | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | -4 | ' |
Unvested awards at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 254 | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested awards at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $47.67 | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | $50.83 | ' |
Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $46.34 | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $47.06 | ' |
Unvested awards at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $49.46 | ' |
Unrecognized costs and period of recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | ' |
Weighted average period for recognition of unrecognized stock-based compensation expense (in years) | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 1 month 12 days | ' |
Number of Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | 34 | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | -2 | ' | ' | ' | ' | ' |
Options outstanding at the end of the period (in shares) | ' | ' | ' | ' | ' | 34 | ' | ' | ' | ' |
Options exercisable (in shares) | ' | ' | ' | ' | 32 | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | ' | $28.77 | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | $23.69 | ' | ' | ' | ' | ' |
Options outstanding at the end of the period (in dollars per share) | ' | ' | ' | ' | $29.12 | $28.77 | ' | ' | ' | ' |
Weighted Average Remaining Contractual Life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the beginning of the period (in years) | ' | ' | ' | ' | '3 years 9 months 12 days | '3 years 9 months 12 days | ' | ' | ' | ' |
Options outstanding at the end of the period (in years) | ' | ' | ' | ' | '3 years 9 months 12 days | '3 years 9 months 12 days | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the beginning of the period (in dollars) | ' | ' | ' | ' | 817,000 | ' | ' | ' | ' | ' |
Exercised (in dollars) | ' | ' | ' | ' | 62,000 | ' | ' | ' | ' | ' |
Options outstanding at the end of the period (in dollars) | ' | ' | ' | ' | $578,000 | $817,000 | ' | ' | ' | ' |
NET_INCOME_LOSS_PER_COMMON_SHA2
NET INCOME (LOSS) PER COMMON SHARE (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Basic and diluted net income per common share | ' | ' |
Net income | $13,596 | $19,272 |
Basic weighted average common shares (in shares) | 22,150 | 23,043 |
Dilutive effect of stock awards (in shares) | 269 | 246 |
Diluted weighted average common shares (in shares) | 22,419 | 23,289 |
Antidilutive stock awards (in shares) | 1 | 128 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
3-May-14 | 4-May-13 | Feb. 01, 2014 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
netbookvalue | $146,800,000 | $159,700,000 | ' |
Property and equipment, gross | 785,628,000 | 840,226,000 | 778,985,000 |
Less accumulated depreciation and amortization | -470,314,000 | -505,783,000 | -466,836,000 |
Property and equipment, net | 315,314,000 | 334,443,000 | 312,149,000 |
Property and equipment, outstanding | 7,600,000 | 4,000,000 | 10,200,000 |
Land and land improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 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 |
Material handling equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and Equipment, Useful Life (in years) | '10-15 yrs | ' | ' |
Property and equipment, gross | 48,479,000 | 48,454,000 | 48,345,000 |
Leasehold improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and Equipment, Useful Life (in years) | '3-15 yrs | ' | ' |
Property and equipment, gross | 353,164,000 | 395,391,000 | 350,451,000 |
Store fixtures and equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and Equipment, Useful Life (in years) | '3-10 yrs | ' | ' |
Property and equipment, gross | 236,177,000 | 253,828,000 | 234,151,000 |
Capitalized software | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and Equipment, Useful Life (in years) | '3-10 yrs | ' | ' |
Property and equipment, gross | 64,787,000 | 74,457,000 | 63,874,000 |
Construction in progress | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $44,070,000 | $29,145,000 | $43,213,000 |
numberofstorestestedforimpairment [Domain] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Number of Stores | 1,040 | 981 | ' |
CREDIT_FACILITY_Details
CREDIT FACILITY (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | Feb. 02, 2013 | Feb. 01, 2014 |
Credit facilities | ' | ' | ' | ' |
Sublimit Availability | $40 | $85.80 | ' | $113.90 |
Deferred financing costs paid | 0.3 | ' | ' | ' |
Letter of credit fees | 0.1 | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | 200 | 150 | ' | 150 |
Line of credit facility, current borrowing capacity | 200 | 150 | ' | 150 |
Outstanding borrowings | 0 | 0 | ' | 0 |
Utilization of credit facility at end of period | 10 | 39.2 | ' | 11.1 |
Availability | 190 | 110.8 | ' | 138.9 |
Interest rate at end of period (as a percent) | 3.80% | 3.80% | ' | 3.80% |
Average loan balance during the period | 1.1 | 0 | 0 | ' |
Highest end of day loan balance during the period | 0 | 0 | 0 | ' |
Average interest rate (as a percent) | 3.80% | 3.80% | 3.80% | ' |
Merchandise Letters of Credit | ' | ' | ' | ' |
Credit facilities | ' | ' | ' | ' |
Letters of credit outstanding | 0.9 | 28 | ' | 1.2 |
Standby Letters of Credit | ' | ' | ' | ' |
Credit facilities | ' | ' | ' | ' |
Letters of credit outstanding | 9.1 | 11.2 | ' | 9.9 |
Credit Agreement | ' | ' | ' | ' |
Credit facilities | ' | ' | ' | ' |
Letters of Credit sublimit | 50 | ' | ' | ' |
Borrowing capacity, accordion feature | 25 | ' | ' | ' |
Line of credit facility, unused line fee percentage (as a percent) | 0.25% | ' | ' | ' |
Deferred financing costs gross | 4 | ' | ' | ' |
Deferred financing costs, remaining unamortized balance | 1.5 | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | $200 | ' | ' | $150 |
Credit Agreement | Prime rate | ' | ' | ' | ' |
Credit facilities | ' | ' | ' | ' |
Basis spread on variable rate, low end of range (as a percent) | 0.50% | ' | ' | ' |
Basis spread on variable rate, high end of range (as a percent) | 0.75% | ' | ' | ' |
Credit Agreement | LIBOR | ' | ' | ' | ' |
Credit facilities | ' | ' | ' | ' |
Basis spread on variable rate, low end of range (as a percent) | 1.50% | ' | ' | ' |
Basis spread on variable rate, high end of range (as a percent) | 1.75% | ' | ' | ' |
Debt Instrument, Description of Variable Rate Basis | 'one, two, three or six | ' | ' | ' |
Credit Agreement | Merchandise Letters of Credit | ' | ' | ' | ' |
Credit facilities | ' | ' | ' | ' |
Letters of credit facility fee, low end of range (as a percent) | 0.75% | ' | ' | ' |
Letters of credit facility fee, high end of range (as a percent) | 0.88% | ' | ' | ' |
Credit Agreement | Standby Letters of Credit | ' | ' | ' | ' |
Credit facilities | ' | ' | ' | ' |
Letters of credit facility fee, low end of range (as a percent) | 1.00% | ' | ' | ' |
Letters of credit facility fee, high end of range (as a percent) | 1.25% | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | 3-May-14 |
Income Tax Disclosure [Abstract] | ' |
Effective tax rate from continuing operations (as a percent) | 32.40% |
Statement [Line Items] | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $0.10 |
INTEREST_INCOME_EXPENSE_NET_De
INTEREST INCOME (EXPENSE), NET (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Components of interest income (expense), net | ' | ' |
Interest income | $290 | $251 |
Less: | ' | ' |
Interest expense - credit facilities | 38 | 26 |
Unused line fee | 109 | 74 |
Amortization of deferred financing costs | 88 | 91 |
Other interest and fees | 36 | 0 |
Total interest expense | 271 | 191 |
Interest (expense), net | $19 | $60 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | ||
3-May-14 | 4-May-13 | Feb. 01, 2014 | |
Segment Reporting [Abstract] | ' | ' | ' |
Percentage of entity-wide sales qualifying purchaser as major customer (as a percent) | 10.00% | ' | ' |
Segment information | ' | ' | ' |
Business Exit Costs | $231,000 | ($1,023,000) | ' |
Restructuring Charges | 2,300,000 | 500,000 | ' |
Net sales: | ' | ' | ' |
Total net sales | 410,149,000 | 423,164,000 | ' |
Gross Profit: | ' | ' | ' |
Total gross profit | 148,261,000 | 163,268,000 | ' |
Gross Margin: | ' | ' | ' |
Total Gross Margin (as a percent) | 36.10% | 38.60% | ' |
Operating income (loss): | ' | ' | ' |
Total operating income (loss) | 20,083,000 | 28,459,000 | ' |
Operating income (loss) as a percent of net sales: | ' | ' | ' |
Total operating income (loss) (as a percent) | 4.90% | 6.70% | ' |
Depreciation and amortization: | ' | ' | ' |
Total depreciation and amortization | 14,227,000 | 16,824,000 | ' |
Capital expenditures: | ' | ' | ' |
Total capital expenditures | 15,902,000 | 22,101,000 | ' |
Total assets: | ' | ' | ' |
Total assets | 937,539,000 | 905,072,000 | 990,630,000 |
westcoastnortheastdc [Domain] | ' | ' | ' |
Segment information | ' | ' | ' |
Business Exit Costs | 200,000 | -1,000,000 | ' |
The Childrens Place US Member | ' | ' | ' |
Net sales: | ' | ' | ' |
Total net sales | 366,132,000 | 373,653,000 | ' |
Gross Profit: | ' | ' | ' |
Total gross profit | 134,195,000 | 143,936,000 | ' |
Gross Margin: | ' | ' | ' |
Total Gross Margin (as a percent) | 36.70% | 38.50% | ' |
Operating income (loss): | ' | ' | ' |
Total operating income (loss) | 22,073,000 | 27,935,000 | ' |
Operating income (loss) as a percent of net sales: | ' | ' | ' |
Total operating income (loss) (as a percent) | 6.00% | 7.50% | ' |
Depreciation and amortization: | ' | ' | ' |
Total depreciation and amortization | 12,372,000 | 14,559,000 | ' |
Capital expenditures: | ' | ' | ' |
Total capital expenditures | 13,839,000 | 17,974,000 | ' |
Total assets: | ' | ' | ' |
Total assets | 780,816,000 | 750,378,000 | 824,893,000 |
Number of Stores | 972 | 980 | ' |
The Children's Place Canada [Member] | ' | ' | ' |
Net sales: | ' | ' | ' |
Total net sales | 44,017,000 | 49,511,000 | ' |
Gross Profit: | ' | ' | ' |
Total gross profit | 14,066,000 | 19,332,000 | ' |
Gross Margin: | ' | ' | ' |
Total Gross Margin (as a percent) | 32.00% | 39.00% | ' |
Operating income (loss): | ' | ' | ' |
Total operating income (loss) | -1,990,000 | 524,000 | ' |
Operating income (loss) as a percent of net sales: | ' | ' | ' |
Total operating income (loss) (as a percent) | -4.50% | 1.10% | ' |
Depreciation and amortization: | ' | ' | ' |
Total depreciation and amortization | 1,855,000 | 2,265,000 | ' |
Capital expenditures: | ' | ' | ' |
Total capital expenditures | 2,063,000 | 4,127,000 | ' |
Total assets: | ' | ' | ' |
Total assets | $156,723,000 | $154,694,000 | $165,737,000 |
Number of Stores | 134 | 131 | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 0 Months Ended | 3 Months Ended | 1 Months Ended | 7 Months Ended | 1 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jul. 17, 2014 | 3-May-14 | Aug. 29, 2013 | Aug. 29, 2013 | Aug. 29, 2013 |
2014 Share Repurchase Program [Member] [Member] | 2014 Share Repurchase Program [Member] [Member] | 2012 Share Repurchase Program | |||
Subsequent Events | ' | ' | ' | ' | ' |
Number of additional shares repurchased (in shares) | ' | ' | 100,000 | ' | 100,000 |
Value of shares repurchased | ' | ' | $5,900 | $17,700 | $5,900 |
Common Stock, Dividends, Per Share, Cash Paid | $0.13 | $0.13 | ' | ' | ' |