Shares of The Children‘s Place Inc. surged 7% in premarket trade Thursday, after the children‘s apparel retailer‘s second-quarter earnings blew past estimates. The company said it had net income of $7.5 million, or 45 cents a share, in the quarter, down from $14.3 million, or 79 cents a share, in the year-earlier period. Adjusted per-share earnings came to 70 cents, ahead of the FactSet consensus of 59 cents. Sales rose to $448.7 million from $373.6 million, also ahead of the FactSet consensus of $428 million. Same-store sales rose 13.2%, well ahead of the FactSet consensus of 8.9%. Chief Executive Jane Elfers said the same-store sales number was the highest ever quarterly comp. "We delivered positive brick and mortar sales comps and positive digital sales comps every month in the second quarter," she said. "Additionally, we drove positive brick and mortar traffic comps every month of the quarter resulting in a positive mid-single digit traffic increase. Specifically, our mall traffic was exceptional, delivering a high single digit positive comp for the quarter." The strong momentum continued into August and back-to-school sales are helping drive positive low double digit comparisons, she said. The company raised its outlook for fiscal 2018 and said it now expects adjusted EPS of $8.09 to $.29, up from prior guidance of $7.95 to $8.20. Sales are expected to range from $1.945 billion to $1.955 billion. The FactSet consensus is for EPS of $8.09 and sales of $1.933 billion. Shares have fallen 5.4% in 2018, while the S&P 500 has gained 7.0%.
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