SEGMENT INFORMATION

3 Months Ended

Apr. 30, 2016

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 revenue from the Company's U.S. based wholesale customers. Included in The Children's Place International segment are the Company's Canadian based stores, revenue from the Company's Canadian wholesale customer 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 April 30, 2016, The Children’s Place U.S. operated 934 stores and The Children’s Place International operated 130 stores. As of May 2, 2015, The Children’s Place U.S. operated 959 stores and The Children’s Place International operated 133 stores.

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

	Thirteen Weeks Ended
	April 30, 2016			May 2, 2015
Net sales:
The Children’s Place U.S.	$	375,107		$	363,145
The Children’s Place International (1)	44,244			41,720
Total net sales	$	419,351		$	404,865
Gross profit:
The Children’s Place U.S.	$	146,491		$	136,520
The Children’s Place International	18,860			15,589
Total gross profit	$	165,351		$	152,109
Gross Margin:
The Children’s Place U.S.	39.1		%	37.6		%
The Children’s Place International	42.6		%	37.4		%
Total gross margin	39.4		%	37.6		%
Operating income:
The Children’s Place U.S. (2)	$	34,154		$	21,994
The Children’s Place International	5,456			1,210
Total operating income	$	39,610		$	23,204
Operating income as a percent of net sales:
The Children’s Place U.S.	9.1		%	6.1		%
The Children’s Place International	12.3		%	2.9		%
Total operating income	9.4		%	5.7		%
Depreciation and amortization:
The Children’s Place U.S.	$	14,643		$	12,870
The Children’s Place International	1,818			1,524
Total depreciation and amortization	$	16,461		$	14,394
Capital expenditures:
The Children’s Place U.S.	$	6,804		$	9,935
The Children’s Place International	280			128
Total capital expenditures	$	7,084		$	10,063

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⁽¹⁾  Net sales from The Children's Place International are primarily derived from revenues from Canadian operations.

⁽²⁾  Includes costs incurred related to proxy contest costs and costs arising out of the restructuring of certain store and corporate operations of approximately $3.2 million during the First Quarter 2015.

	April 30, 2016		January 30, 2016		May 2, 2015
Total assets:
The Children’s Place U.S.	$	710,666	$	748,975	$	761,504
The Children’s Place International	158,550		148,973		148,599
Total assets	$	869,216	$	897,948	$	910,103