Shares of children’s specialty apparel provider The Children’s Place (NASDAQ:PLCE) are tanking in the pre-market session today after the company announced preliminary Q4 numbers.
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PLCE expects to incur a net loss between $52 million and $57 million for the period owing to rising costs and lower gross margins. Higher cotton prices and container costs coupled with supply chain challenges impacted the company’s performance.
This year, all three of these costs are normalizing and PLCE estimates the trend translating into annualized savings of $100 million as a result. For Q4, net sales are anticipated between $454 million and $456 million. Net loss per share is seen landing between $4.02 and $4.41.
Consequently, PLCE shares are down about 13% today. Overall, the average price target for PLCE is $46.50 at present. This indicates the stock may be fairly priced at the current level.
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