• Q2 loss was  $7.1m or $0.24 per share
  • Net sales fell 7% to $315.7m
  • Same-store sales dropped by 9%

The economic environment, foreign exchange rates and tough comparisons with last year have pushed The Children's Place Retail Stores Inc to a second quarter loss.

The Secaucus, New Jersey based retailer posted net loss of $7.1m or $0.24 per share, compared with breakeven a year ago.

Excluding one-time items, the company would have posted a loss of $12.4m or $0.42 per share, it said.

Net sales fell 7% to $315.7m from $338.0m last time, while comparable retail sales, which include online sales, dropped by 9%.

"Despite these headwinds, we were pleased to have made significant progress on various initiatives including further growth in our e-commerce business, acceleration of our cost cutting efforts and the successful rollout of a new value-engineered store format," said interim CEO Chuck Crovitz.

He added: "Looking ahead, we plan to continue to operate our business conservatively while the recession lingers, but remain confident that we have the right strategies in place to drive long-term growth."