SEGMENT INFORMATION

3 Months Ended

May 04, 2013

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

In accordance with the “Segment Reporting” topic of the FASB ASC, the Company reports segment data based on geography: The Children’s Place U.S. and The Children’s Place International.  Each segment includes an e-commerce business located at www.childrensplace.com.  Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico based stores. Included in The Children's Place International segment are the Company's Canadian based stores and revenue from international franchisees. The Company measures its segment profitability based on operating income, defined as income before interest and taxes.  Net sales and direct costs are recorded by each segment.  Certain inventory procurement functions such as production and design as well as corporate overhead, including executive management, finance, real estate, human resources, legal, and information technology services are managed by The Children’s Place U.S. segment.  Expenses related to these functions, including depreciation and amortization, are allocated to The Children’s Place International segment based primarily on net sales.  The assets related to these functions are not allocated.  The Company periodically reviews these allocations and adjusts them based upon changes in business circumstances.  Net sales from external customers are derived from merchandise sales and the Company has no major customers that account for more than 10% of its net sales.  As of May 4, 2013, The Children’s Place U.S. operated 980 stores and The Children’s Place International operated 131 stores. As of April 28, 2012, The Children’s Place U.S. operated 937 stores and The Children’s Place International operated 125 stores.

The following tables provide segment level financial information (dollars in thousands):

	Thirteen Weeks Ended
	May 4, 2013			April 28, 2012
Net sales:
The Children’s Place U.S.	$	373,653		$	384,783
The Children’s Place International (1)	49,511			53,725
Total net sales	$	423,164		$	438,508
Gross profit:
The Children’s Place U.S.	$	143,936		$	156,407
The Children’s Place International	19,332			22,238
Total gross profit	$	163,268		$	178,645
Gross Margin:
The Children’s Place U.S.	38.5		%	40.6		%
The Children’s Place International	39.0		%	41.4		%
Total gross margin	38.6		%	40.7		%
Operating income:
The Children’s Place U.S. (2)	$	27,935		$	34,454
The Children’s Place International (4)	524			2,606
Total operating income	$	28,459		$	37,060
Operating income as a percent of net sales:
The Children’s Place U.S.	7.5		%	9.0		%
The Children’s Place International	1.1		%	4.9		%
Total operating income	6.7		%	8.5		%
Depreciation and amortization:
The Children’s Place U.S. (3)	$	14,559		$	14,230
The Children’s Place International (4)	2,265			2,988
Total depreciation and amortization	$	16,824		$	17,218
Capital expenditures:
The Children’s Place U.S.	$	17,974		$	19,160
The Children’s Place International	4,127			2,852
Total capital expenditures	$	22,101		$	22,012

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(1) Includes approximately $2.6 million and $0.4 million of revenue from international franchisees for the First Quarter 2013 and First Quarter 2012, respectively. There was no revenue from international franchisees prior to fiscal 2012.

(2) Includes other costs (income) associated with the closures of the West Coast DC and Northeast DC of ($1.0 million) and $0.8 million for the First Quarter 2013 and First Quarter 2012, respectively, and includes a $1.3 million impairment charge during the First Quarter 2012. Includes additional costs incurred related to restructuring, severance and reorganizations of approximately $0.5 million and $2.7 million for the First Quarter 2013 and First Quarter 2012, respectively.

(3) Includes approximately $0.4 million of accelerated depreciation related to stores whose lease we plan to terminate.

(4) Includes approximately $0.9 million of accelerated depreciation associated with certain Canadian stores remodeled earlier than originally anticipated in the First Quarter 2012.

	May 4, 2013		February 2, 2013		April 28, 2012
Total assets:
The Children’s Place U.S.	$	750,378	$	746,911	$	712,344
The Children’s Place International	154,694		176,499		161,041
Total assets	$	905,072	$	923,410	$	873,385