The Children's Place Retail Stores staged a recovery in its second quarter, turning last year's US$28.1m loss into break-even this time around.

Following the retailer's exit from the Disney Stores business, net sales for the three months to 2 August were up 16% to $338m, with comparable store sales up 9%.

That lifted first-half revenues 14% to $738.2m, with comps up 7%.

The company posted second quarter income after tax of $2.7m, compared to a loss last year of $17.8m.

Excluding adjustments, the adjusted loss for the quarter stood at $0.9m, compared to a $17.8m adjusted loss in 2007.

Net income for the second quarter was break-even, an improvement on last year's $28.1m loss. For the half, net income was $19.5m, compared to a $13.4m loss.

"We are gratified to see that the hard work and dedication of our entire team continued to pay off in the second quarter," said interim CEO Chuck Crovitz.

"Overall, we achieved solid top-line growth for the quarter while implementing cost reduction initiatives to better support our value positioning.

"We expect that consumer purchasing power will continue to be pressured by ongoing weakness in the economy and we are maintaining our focus on offering great colour, great outfitting, and great fashion at outstanding value."