Childrens Place Inc. (NASDAQ:PLCE) posted mixed fourth quarter earnings results, but its comparable store sales results were excellent, and its 2017 outlook smashed expectations.

Written by StockNews.com

The Secaucus, NJ-based children’s specialty apparel retailer reported Q4 earnings per share (EPS) of $1.88, which was $0.29 better than the Wall Street consensus estimate of $1.59.

Revenues rose 4.5% from last year to $520.8 million, but fell short of analysts’ view for $522.13 million.

PLCE also noted that comparable retail sales (“comps”) jumped 6.9% in the latest period. This gain built upon Q4 2015’s 6.7% rise in comps. Comparable sales are considered a key indicator of a retailer’s health, since they only track the year-over-year performance of stores open at least 12 months.

Looking ahead, the company forecast Q1 EPS to range from $1.45 to $1.55, in-line with Wall Street’s current $1.52 estimate.

The Children’s Place full year 2017 outlook was even better. The retailer sees 2017 EPS of $6.05 to $6.20, well above the $5.85 that analysts are looking for.

PLCE also continues to shutter underperforming stores to streamline its operations. It now expects to close 300 stores by 2020.

Finally, PLCE’s board of directors authorized a new $250 million share buyback program and boosted its quarterly dividend payout by 100%, from $0.20 per share to $0.40 per share, or $1.60 per share on an annualized basis.

The company commented on its results and current progress via press release:

“By any measure, 2016 was a spectacular year for The Children’s Place. We made significant progress on our numerous self-help initiatives. And our product assortment, supported by a foundation of superior design, sourcing and merchandising capabilities, clearly resonated with our customers.”

“Quarter to date, we are generating positive comparable retail sales. We are very encouraged by these results, particularly in light of the significant delay in tax refunds earlier in the quarter.”