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Children's Place
(NASDAQ:PLCE)
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Rating:41Neutral
Price Target:
$2.50
▲(3.73% Upside)
Action:Upgraded
Date:07/21/26
The score is held down primarily by weak financial performance (ongoing losses, negative equity, and cash burn) and a bearish technical trend (price below all major moving averages with negative MACD). Valuation provides limited support because the company is loss-making (negative P/E), and corporate events add a modest governance/compliance risk overhang despite some positive shareholder votes.
Positive Factors
Omnichannel brand portfolio
The Children’s Place operates a multi-brand, omnichannel model (stores, e-commerce, wholesale, licensing). That structural mix diversifies revenue sources, broadens customer reach across demographics and channels, and provides durable distribution flexibility versus single-channel peers.
Negative Factors
Negative equity and high leverage
Negative shareholders’ equity combined with roughly $376M of debt indicates a very thin capital cushion and elevated leverage. This structural weakness constrains access to traditional capital markets, raises solvency sensitivity to shocks, and limits financial flexibility for investments or restructurings.
Read all positive and negative factors
Positive Factors
Negative Factors
Omnichannel brand portfolio
The Children’s Place operates a multi-brand, omnichannel model (stores, e-commerce, wholesale, licensing). That structural mix diversifies revenue sources, broadens customer reach across demographics and channels, and provides durable distribution flexibility versus single-channel peers.
Read all positive factors
Children's Place (PLCE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$53.81M
Dividend YieldN/A
Average Volume (3M)329.47K
Price to Earnings (P/E)―
Beta (1Y)3.16
Revenue Growth-13.13%
EPS Growth-54.20%
CountryUS
Employees2,530
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-4.84
Shares Outstanding22,237,066
10 Day Avg. Volume299,496
30 Day Avg. Volume329,470
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)-1.64
Price to Sales (P/S)0.07
P/FCF Ratio-9.58
Enterprise Value/Market Cap13.13
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit2.26
Enterprise Value/Ebitda-16.25
Forecast
1Y Price Target
$4.00Price Target Upside65.98% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-3.95
Revenue Forecast (FY)$1.07B
Children's Place Business Overview & Revenue Model
Company Description
The Children's Place, Inc. operates as a specialized retailer focusing on apparel for children. Its operations are divided into two primary segments: The Children's Place U.S. and The Children's Place International. The company designs, contracts ...
How the Company Makes Money
The Children’s Place primarily makes money by selling children’s merchandise (apparel, footwear, and accessories) through multiple channels. The largest revenue stream is retail sales to consumers via its e-commerce platforms and its physical stor...
Children's Place Earnings Call Summary
Earnings Call Date:Dec 03, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong digital growth and successful marketing strategies but was overshadowed by a decline in overall sales and increased distribution costs. Management expressed confidence in addressing these challenges, but the current financial pressures were evident.Positive Updates
Digital Sales Growth
E-commerce sales grew in the low single digits, with e-commerce representing 57% of retail sales in Q3, up from 50% last year and 37% in 2019.
Negative Updates
Sales Decline
Net sales decreased by 5.7% to $480.2 million, with U.S. net retail sales down 8.9% and Canadian sales down 22.1%.
Read all updates
Q3-2024 Updates
Positive
Negative
Digital Sales Growth
E-commerce sales grew in the low single digits, with e-commerce representing 57% of retail sales in Q3, up from 50% last year and 37% in 2019.
Read all positive updates
Company Guidance
During the third quarter earnings call for The Children's Place, the company exceeded expectations with net sales reaching $480.2 million, largely driven by a low single-digit increase in e-commerce sales and a significant rise in digital traffic. E-commerce represented an impressive 57% of retail sales, up from 50% the previous year. Despite a challenging macroeconomic environment, the company maintained strong merchandise margins. However, increased distribution costs due to higher fulfillment and labor expenses impacted the bottom line, with gross profit margins slightly declining to 33.7% from 34.8% the previous year. Inventory levels ended 16% lower, setting a strong foundation for Q4. For Q4, the company anticipates net sales between $460 million and $465 million and an adjusted operating profit margin of 2% to 3%. Full-year 2023 expectations include net sales of $1.605 billion to $1.61 billion, with adjusted net loss per share projected between negative $0.59 and negative $0.39. Looking forward, the company plans further inventory reductions and capital expenditures of $25 million to $30 million, focusing on digital initiatives and fulfillment enhancements.Children's Place Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
12
Very Negative
Cash Flow
28
Negative
| Breakdown | TTM | Jan 2026 | Jan 2025 | Apr 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.18B | 1.21B | 1.39B | 1.60B | 1.71B | 1.92B |
| Gross Profit | 312.62M | 328.49M | 419.85M | 398.09M | 462.70M | 737.72M |
| EBITDA | -43.47M | -26.31M | 25.96M | -36.52M | 138.96M | 434.64M |
| Net Income | -107.43M | -88.26M | -57.82M | -154.54M | -1.14M | 187.17M |
Balance Sheet | ||||||
| Total Assets | 729.18M | 670.30M | 747.55M | 800.31M | 986.28M | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 4.78M | 5.49M | 5.35M | 13.64M | 16.69M | 54.79M |
| Total Debt | 633.85M | 513.87M | 586.33M | 463.84M | 511.80M | 450.86M |
| Total Liabilities | 836.41M | 724.48M | 806.96M | 809.33M | 827.80M | 811.99M |
| Stockholders Equity | -107.23M | -54.18M | -59.41M | -9.02M | 158.48M | 225.47M |
Cash Flow | ||||||
| Free Cash Flow | -25.41M | -9.26M | -133.42M | 65.24M | -53.80M | 103.97M |
| Operating Cash Flow | -3.40M | 8.12M | -117.59M | 92.80M | -8.22M | 133.28M |
| Investing Cash Flow | -22.00M | -17.38M | -15.83M | -27.79M | -45.95M | -29.29M |
| Financing Cash Flow | 25.82M | 6.97M | 128.40M | -68.27M | 17.06M | -112.74M |
Children's Place Technical Analysis
Negative
2.41
Price Trends
3.20
Negative
3.29
Negative
4.60
Negative
Market Momentum
-0.18
Positive
29.08
Positive
19.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLCE, the sentiment is Negative. The current price of 2.41 is below the 20-day moving average (MA) of 2.81, below the 50-day MA of 3.20, and below the 200-day MA of 4.60, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 29.08 is Positive, neither overbought nor oversold. The STOCH value of 19.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLCE.
Children's Place Risk Analysis
Children's Place disclosed 35 risk factors in its most recent earnings report. Children's Place reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Children's Place Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.43B | 15.56 | 10.14% | 2.58% | 4.88% | -45.12% | |
53 Neutral | $273.68M | -21.40 | 6.03% | ― | -10.09% | -232.12% | |
49 Neutral | $114.03M | -38.99 | -3.98% | ― | 1.69% | 93.35% | |
47 Neutral | $65.66M | 337.00 | -0.14% | ― | 1.82% | ― | |
47 Neutral | $314.82M | 30.24 | 3.57% | 3.66% | -1.61% | ― | |
41 Neutral | $53.81M | -0.52 | 245.71% | ― | -13.13% | -54.20% |
* Consumer Cyclical Sector Average
PLCE
Children's Place
2.44
-2.36
-49.17%
CRI
Carter's
37.79
14.15
59.84%
CATO
The Cato
3.33
0.51
18.09%
DBI
Designer Brands
6.19
3.49
129.00%
TLYS
Tilly's
3.71
1.92
107.26%
CURV
Torrid Holdings
2.61
0.12
4.82%
Children's Place Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Children’s Place Board Restructures After Director Resignation
Negative
Jul 17, 2026
On July 13, 2026, The Children’s Place, Inc. announced that Douglas Edwards resigned from its board of directors, where he had served as Chair of the Corporate Responsibility, Sustainability Governance Committee and as a member of the Audit...
Executive/Board Changes
Children’s Place Announces Executive Director Leadership Transition
Neutral
Jul 10, 2026
On July 6, 2026, The Children’s Place, Inc. announced that Kim Roy stepped down from her role as Executive Director and employee, while continuing to serve on the company’s board of directors. The company emphasized that her departure ...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Children’s Place names Mithaq executive interim CEO
Neutral
Jul 7, 2026
On July 1, 2026, The Children’s Place entered into a $15 million Shariah-compliant, unsecured and subordinated term loan with controlling shareholder Mithaq Capital as the first draw under a $40 million credit commitment, permanently reducin...
Executive/Board ChangesShareholder Meetings
Children’s Place Shareholders Approve Governance and Compensation Measures
Positive
May 6, 2026
At its 2026 Annual Meeting of Stockholders, Children’s Place shareholders elected seven directors to one-year terms expiring in 2027 and approved BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending J...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.