SEGMENT INFORMATION

3 Months Ended

May 03, 2014

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, 2014			May 4, 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	32.0		%	39.0		%
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.	6.0		%	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

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(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