Top Performer for Monday: Children's Place (PLCE)

There are several retailers on today's Zacks #1 Rank List, but The Children's Place Retail Stores, Inc. (PLCE - Snapshot Report) is among the top performers with a gain of approximately 4%.

There are 11 other companies from the Retail - Apparel/Shoe industry on today's 222-stock Zacks #1 Rank List, including fellow top performers Cato Corp. (CTR), Dress Barn, Inc. (DBRN - Snapshot Report) and Citi Trends (CTRN - Analyst Report). The list also includes Aeropostale, Inc. (ARO - Snapshot Report), Gap, Inc. (GPS - Analyst Report) and Gymboree Corp. (GYMB - Snapshot Report).

Earnings Estimates on the Move

Earnings estimates on PLCE have been moving in the right direction of late, accounting for a 28% rise in the past 2 months for this fiscal year, which ends January 2010.

In the past 30 days, 4 of 8 covering analysts revised higher, marking a gain of 8.2% in that time.

Next fiscal year's estimates have moved up by 21% in 2 months and 7% in 30 days. Analysts currently expect $2.75 for the fiscal year ending January 2011, which is 15.5% better than this fiscal year's consensus of $2.38.

What About the Quarter?

PLCE announced solid results for its fiscal first quarter in May. The company reported earnings per share from continuing operations of 74 cents, which matched the consensus and bettered the year-ago result. In the past 4 quarters, PLCE has beaten twice, matched once and missed once.

Net sales advanced slightly to $401.9 million from last year's $400.2 million. Same-store sales increased 1%.

However, earlier this month, PLCE announced that same-store sales in May declined, and came in below expectations.

Volume today of 791,000 is a bit below the daily average of almost 1.1 million.

The Committee of Concerned Shareholders

PLCE is at the heart of a proxy battle presently, spawned by a group of shareholders that calls itself the Committee of Concerned Shareholders. The group, which owns about 22% of the company, is led by former CEO Ezra Dabah, who left in 2007.

On Thursday, Jun 18, the group urged shareholders to vote for 3 nominees that it chose for the company's Board of Directors at its Annual Meeting of Shareholders, which is scheduled for Jul 31.

According to the Committee, "The Board's nominees lack the relevant expertise required to lead the company into the future and generate innovation and growth."

A day earlier, PLCE's Board had urged shareholders to vote against the group's nominees, stating "If Mr. Dabah succeeds in electing his three nominees, he will have vastly disproportionate representation on the Board based on share ownership."