SEGMENT INFORMATION

9 Months Ended

Oct. 29, 2011

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 management responsibility: The Children’s Place U.S. and The Children’s Place Canada.  Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico based stores. Each segment includes an e-commerce business located at www.childrensplace.com.  The Company measures its segment profitability based on operating income, defined as income from continuing operations 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 Canada segment based primarily on net sales.  The assets related to these functions are not allocated.  The Company periodically reviews these allocations and adjusts them based upon changes in business circumstances.  Net sales from external customers are derived from merchandise sales and the Company has no major customers that account for more than 10% of its net sales.  As of October 29, 2011, The Children’s Place U.S. operated 953 stores and The Children’s Place Canada operated 123 stores. As of October 30, 2010, The Children’s Place U.S. operated 903 stores and The Children’s Place Canada operated 102 stores.

The following tables provide segment level financial information for the Third Quarter 2011, the Third Quarter 2010, Year-To-Date 2011 and Year-To-Date 2010 (dollars in thousands):

	Thirteen Weeks Ended						Thirty-nine Weeks Ended
	October 29, 2011			October 30, 2010			October 29, 2011			October 30, 2010
Net sales:
The Children’s Place U.S.	$	416,781		$	388,423		$	1,091,706		$	1,059,165
The Children’s Place Canada	67,304			64,972			166,693			161,664
Total net sales	$	484,085		$	453,395		$	1,258,399		$	1,220,829
Gross profit:
The Children’s Place U.S.	$	165,310		$	149,697		$	418,055		$	398,881
The Children’s Place Canada	34,741			32,646			81,208			76,740
Total gross profit	$	200,051		$	182,343		$	499,263		$	475,621
Gross Margin:
The Children’s Place U.S.	39.7		%	38.5		%	38.3		%	37.7		%
The Children’s Place Canada	51.6		%	50.2		%	48.7		%	47.5		%
Total gross margin	41.3		%	40.2		%	39.7		%	39.0		%
Operating income:
The Children’s Place U.S.	$	41,196		$	35,210		$	62,182		$	57,077
The Children’s Place Canada	13,252			14,831			25,264			27,530
Total operating income	$	54,448		$	50,041		$	87,446		$	84,607
Operating income as a percent of net sales:
The Children’s Place U.S.	9.9		%	9.1		%	5.7		%	5.4		%
The Children’s Place Canada	19.7		%	22.8		%	15.2		%	17.0		%
Total operating income	11.2		%	11.0		%	6.9		%	6.9		%
Depreciation and amortization:
The Children’s Place U.S.	$	16,142		$	15,836		$	48,105		$	47,899
The Children’s Place Canada	2,351			1,902			6,617			5,663
Total depreciation and amortization	$	18,493		$	17,738		$	54,722		$	53,562
Capital expenditures:
The Children’s Place U.S.	$	14,154		$	13,817		$	53,849		$	58,792
The Children’s Place Canada	3,001			2,530			10,031			4,513
Total capital expenditures	$	17,155		$	16,347		$	63,880		$	63,305

	October 29, 2011		January 29, 2011		October 30, 2010
Total assets:
The Children’s Place U.S.	$	720,823	$	720,951	$	748,764
The Children’s Place Canada	153,357		133,380		126,679
Total assets	$	874,180	$	854,331	$	875,443