The Children's Place Retail Stores, Inc. Reports First Quarter 2009 Financial Results

* Net sales from continuing operations for the first quarter of 2009
   were $401.9 million, slightly above the previous year's first
   quarter net sales of $400.2 million.
 * Comparable retail sales, which include online sales, increased 1%
   in the first quarter of 2009, on top of a 6% increase during the
   same period last year.
 * Income from continuing operations after tax was $23.7 million, or
   $0.80 per diluted share, in the first quarter of 2009, compared to
   $19.4 million, or $0.66 per share, in the first quarter of 2008.
   The Company's first quarter income from continuing operations
   included several items which the Company deems to be unusual or
   one-time in nature, including:
   * In the first quarter of 2009, restructuring costs of $2.6 million,
     pre-tax, associated with the implementation of the cost-control
     initiatives announced in February; the write-off of deferred
     financing fees of $0.9 million, pre-tax, related to the
     prepayment of a portion of the term loan; an asset impairment
     charge of $0.8 million, pre-tax, for an underperforming store
     that has been open for less than two years; and a one-time tax
     benefit of $4.5 million from the settlement of an IRS income tax
     audit.
   * In the first quarter of 2008, restructuring costs of $1.3 million,
     pre-tax, and professional fees of $0.8 million, pre-tax, related
     to the Company's review of strategic alternatives.
 * Excluding the unusual or one-time items mentioned above from the
   first quarters of both years, adjusted income from continuing
   operations after tax was $21.8 million, or $0.74 per diluted share,
   in the first quarter of 2009, compared to $20.7 million, or $0.71
   per diluted share, in the first quarter of 2008. The first quarter
   income from continuing operations excluding these items is a
   non-GAAP measure. The Company believes the excluded items are not
   indicative of the performance of its core business and that by
   providing this supplemental disclosure to investors it will
   facilitate comparisons of its past and present performance. A
   reconciliation of income from continuing operations as reported is
   included in this press release in Table 3.
 * Net income, including the impact of discontinued operations, was
   $23.5 million in the first quarter of 2009, or $0.79 per diluted
   share, compared to net income of $19.5 million, or $0.67 per
   diluted share, for the same period last year.
 * During the first quarter of 2009, the Company opened six stores and
   closed one.

Table 1
               THE CHILDREN'S PLACE RETAIL STORES, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (In thousands, except per share amounts)
                             (Unaudited)

First Quarter Ended
                                                   -------------------
                                                     May 2,    May 3,
                                                      2009      2008
                                                    --------  --------

Net sales                                          $401,901  $400,212
 Cost of sales                                       235,374   229,120
                                                    --------  --------
 Gross profit                                        166,527   171,092
 Selling, general and administrative expenses        111,893   119,410
 Asset impairment charge                               1,099        --
 Depreciation and amortization                        17,524    17,652
                                                    --------  --------
 Income from continuing operations before interest
  and taxes                                           36,011    34,030
 Interest (expense), net                              (3,268)     (493)
                                                    --------  --------
 Income from continuing operations before income
  taxes                                               32,743    33,537
 Provision for income taxes                            9,002    14,117
                                                    --------  --------
 Income from continuing operations net of income
  taxes                                               23,741    19,420
 Income (Loss) from discontinued operations net of
  income taxes                                          (229)       98
                                                    --------  --------
 Net income                                         $ 23,512  $ 19,518
                                                    ========  ========

Basic income from continuing operations per common
  share                                             $   0.81  $   0.67
 Income (Loss) from discontinued operations per
  common share                                         (0.01)     0.00
                                                    --------  --------
 Basic net income per common share                  $   0.80  $   0.67
                                                    ========  ========
 Basic weighted average common shares outstanding     29,475    29,182

Diluted income from continuing operations per
  common share                                      $   0.80  $   0.66
 Income from discontinued operations per common
  share                                                (0.01)     0.00
                                                    --------  --------
 Diluted net income per common share                $   0.79  $   0.67
                                                    ========  ========
 Diluted weighted average common shares and common
  shares equivalents outstanding                      29,605    29,275

Note: Amounts may not add due to rounding

Table 2
               THE CHILDREN'S PLACE RETAIL STORES, INC.
                CONDENSED CONSOLIDATED BALANCE SHEETS
                            (In thousands)
                             (Unaudited)

May 2,   Jan. 31,   May 3,
                                            2009      2009      2008
                                          --------  --------  --------

Current assets:

Cash and investments                     $224,275  $226,206  $118,315
 Accounts receivable                        19,299    19,639    34,661
 Inventories                               181,984   211,227   179,065
 Other current assets                       84,880    62,518    92,406
 Restricted assets in bankruptcy estate
  of subsidiary                                 --        --    99,068
                                          --------  --------  --------
 Total current assets                      510,438   519,590   523,515

Property and equipment, net               314,331   318,116   338,450
 Other assets, net                          67,151   102,051    91,911
                                          --------  --------  --------
 Total assets                             $891,920  $939,757  $953,876
                                          ========  ========  ========

Current liabilities:

Revolving credit facility                $     --  $     --  $ 27,936
 Short term portion of term loan            15,000    30,000        --
 Accounts payable                           58,155    73,333    59,303
 Accrued expenses and other current
  liabilities                               98,811   103,662   109,273
 Liabilities subject to compromise              --        --   123,694
                                          --------  --------  --------
 Total current liabilities                 171,966   206,995   320,206

Long term portion of term loan             23,000    55,000        --
 Other liabilities                         117,565   129,883   141,504
                                          --------  --------  --------
 Total liabilities                         312,531   391,878   461,710

Stockholders' equity                      579,389   547,879   492,166
                                          --------  --------  --------

Total liabilities and stockholders'
  equity                                  $891,920  $939,757  $953,876
                                          ========  ========  ========

Table 3
               THE CHILDREN'S PLACE RETAIL STORES, INC.
       RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP
               (In millions, except per share amounts)
                             (Unaudited)

First Quarter Ended
                                                   -------------------
                                                     May 2,    May 3,
                                                      2009      2008
                                                    --------  --------

Income from continuing operations net of income
  taxes                                             $   23.7  $   19.4
                                                    --------  --------

Significant one-time items pre-tax:
 Restructuring costs                                     2.6       1.3
 Deferred financing fees write-off                       0.9        --
 Impairment charge                                       0.8        --
 Professional fees                                        --       0.8
                                                    --------  --------

Aggregate expense from significant one-time items       4.3       2.1
 Less income tax effect for significant one-time
  items                                                 (1.7)     (0.8)
 One-time tax benefit resulting from resolution of
  an IRS income tax audit                               (4.5)       --
                                                    --------  --------

Adjusted (gain) expense from significant one-time
  items after taxes                                     (1.9)      1.3
                                                    --------  --------
 Adjusted income from continuing operations net of
  income taxes                                      $   21.8  $   20.7
                                                    ========  ========

GAAP income from continuing operations per diluted
  share                                             $   0.80  $   0.66

Adjusted income from continuing operations per
  diluted share                                     $   0.74  $   0.71

CONTACT:  The Children's Place Retail Stores, Inc.
          Susan Riley, EVP, Finance & Administration
            (201) 558-2400
          Jane Singer, VP, Investor Relations
            (201) 453-6955