The Children’s Place generated $435 million revenues in its first quarter despite operating 261 fewer stores than it did two years ago.

As per Sourcing Journal, e-commerce represented 42 percent of total sales as the retailer continues its digital transformation but the company still anticipates it will reach its goal to get annual digital revenue of 50 percent total sales. This will be aided by a decrease in fixed overhead costs related to online fulfillment.

The company’s inventories to close the quarter were $417.8 million, up 24.4 percent compared to inventories of $335.8 million a year ago. Net sales for the quarter increased by 70.6 percent to $435.5 million, compared to $255.2 million, primarily driven by what the retailer called strong customer response to its product assortment and as well as the recent stimulus payments. Additionally, the sales boost occurs a year after the retailer experienced permanent and temporary store closures for approximately 50 percent of the first quarter of 2020.

As of May 1, the retailer had 679 of 724 stores open in the US, Canada, and Puerto Rico, with all of the temporarily closed stores located in Canada. The retailer is staying in line with its store fleet optimization initiative, permanently closing 25 stores in the first quarter.

The Children’s Place is planning to close an additional 98 stores in fiscal 2021, which would bring the retailer to its 2020 target of 300 store closures. The closures will also come without financial penalty, and reset the company’s occupancy costs.