Shares of Children's Place were up more than 4 percent Tuesday after the retailer raised its full-year profit guidance and reported better-than-expected quarterly results.
The New Jersey-based retailer bumped its earnings guidance by 17 cents to between $4.17 and $4.27. Wall Street analysts were expecting $4.09, according to Thomson Reuters.
The company, which makes kid's apparel and accessories, reported a 59 percent increase in earnings per share, reporting $1.32 in the first quarter.
Net sales for the retailer rose 3.6 percent to $419.4 million in the first quarter, compared to consensus expectations of $418 million, according to Thomson Reuters. The company cited currency fluctuations as a main headwind. On a constant currency basis, net sales increased by 4.1 percent compared with the same quarter a year earlier. Comparable retail sales increased 5.1 percent.
Source: FactSet
"We are raising our guidance for the full year, despite the challenging environment and continued weakness in store traffic," Jane Elfers, CEO of Children's Place, said in a statement. This guidance assumes a low single digit comp sales increase, expansion of gross margin and disciplined expense control."
Shares of the Children's Place are up 29 percent so far this year, trading near $71 Tuesday.