Children’s Place announces transformation initiative

John Szczepanski, Chief Financial Officer said, “We will be implementing an in-depth long-range plan that will better streamline the Company’s operations to yield over $40 million of gross benefits over the next three years. We will be focused on reducing unnecessary corporate office costs, optimizing our distribution network, and rightsizing non-merchandise and third-party spending. In addition, these expense savings will further support our changing business model, including the Company’s strategic shift from closing stores to opening stores instead, as we revitalize the look, feel and experience for our customers when they enter our stores and visit our website, with a focus on improving top-line sales.” Szczepanski continued, “Our transformation efforts also include a review of our corporate cost structure, to seek further opportunities to augment our staffing and optimize our corporate payroll, which peaked above $120 million at the beginning of fiscal year 2023 and is planned to be below an $80 million run rate in fiscal year 2026. These transformation efforts are expected to incur certain one-time costs amounting to approximately $5 million to $10 million. The savings from these actions will allow us to reinvest in our business, including the launch of our new loyalty program in the third quarter to drive retention and enhance lifetime value. We are excited and energized by these plans to grow top-line sales and profitability. We plan to further review our long-range plan for the business and other strategic initiatives during the Sidoti Fall Virtual Small Cap Conference, with further information for all investors to be posted to our website following the conference on September 18, 2025.”