The Children's Place Retail Stores Inc. (Nasdaq: PLCE) beat analysts' expectations for third-quarter earnings by cutting expenses in the midst of a sales decline.
The company reported that its adjusted net income was $42.7 million, or $1.89 a share, compared with $41.3 million, or $1.70, for the third quarter of 2012. That beats analysts' forecasts of $1.85 a share.
While income was strong, net sales of $492.7 million were below analysts' estimates of $502.1 million, and below $500.9 million a year ago. Comp store sales declined 0.7 percent.
"We achieved the high-end of our earnings guidance as a result of strong execution of our important back-to-school period, and the continuation of disciplined expense management across the organization," president and CEO Jane Elfers said in a statement.
Meanwhile, discount shoe retailer DSW (NYSE: DSW) also saw increased income, reporting a profit of $55 million, or 60 cents a share, up from a profit of $50.1 million, or 55 cents a share, a year earlier. Adjusted earnings rose to 58 cents a share from 51 cents, matching analysts' estimates.
Sales for the company climbed 6.8 percent to $633 million, but missed the $647.6 million Wall Street estimate. Like Children's Place, DSW saw a slide in same-store sales, which fell 0.7 percent.
"We were encouraged by the improvement in traffic and sales at the end of the quarter, as the fall selling season got off to a delayed start," DSW chief executive Mike MacDonald said in the earnings statement.
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