US apparel retailer The Children's Place has adjusted its fourth-quarter EPS and sales guidance, to the upper end of its previous forecast.

A strong customer reaction to the firm's spring merchandise and a significant decline in the carryover of its inventory has pushed the company to adjust its guidance for the quarter.

The fashion retailer said it now expects to achieve results in the upper end of the guidance range for both fourth-quarter comparable retail sales, previously guided to increase low single digits, and adjusted net income per diluted share, previously guided to be between $0.83 and $0.93.

FB&R analyst Susan Anderson believes that given continued uncertainty about the retailing environment in January, that the company could be being conservative with guidance.

"Note that compares get easier in January with adverse weather impacting results last year (traffic pressured and had to incur deeper promos which impacted both revenue and GM). In addition, the currently cold temperatures on the east coast could aid sell throughs of winter, clearance merchandise potentially at a lower markdown rate versus last year," she noted.