=The Children's Place (PLCE) reported earnings on Tue 5/17/16 (b/o)

The Children's Place beats by $0.28, reports revs in-line; guides FY17 EPS above consensus :

• Reports Q1 (Apr) earnings of $1.32 per share, $0.28 better than the Capital IQ Consensus of $1.04; revenues rose 3.6% year/year to $419.4 mln vs the $417.56 mln Capital IQ Consensus. 
  • Comparable retail sales were positive 5.1%, on top of a positive 0.7% comp in the first quarter of 2015.
  • Comparable retail sales were positive in all three months of the quarter and were also positive across all divisions and channels.
  • Inventories were down 11% at quarter-end, on top of an 8% decrease in the first quarter of 2015
• Co issues upside guidance for FY17, sees EPS of $4.17-4.27 vs. $4.09 Capital IQ Consensus Estimate. This compares to the Company's previous guidance of $4.00 to $4.10 per diluted share and to adjusted net income per diluted share of $3.60 in fiscal 2015.
  • This guidance assumes a positive low single digit increase in comparable retail sales for the year (unchanged from prior comps guidance).
  • "We are raising our guidance for the full year, despite the challenging environment and continued weakness in store traffic. This guidance assumes a low single digit comp sales increase, expansion of gross margin and disciplined expense control."