Children's Place (PLCE) AI Stock Analysis

• Market Cap: $160.27M
• Dividend Yield: N/A
• Average Volume (3M): 502.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.63
• Revenue Growth: -12.08%
• EPS Growth: 93.16%
• Country: US
• Employees: 2,530
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): N/A
• Shares Outstanding: 22,167,889
• 10 Day Avg. Volume: 321,855
• 30 Day Avg. Volume: 502,784
• PEG Ratio: 0.03
• Price to Book (P/B): -2.10
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -0.94
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $8.00
• Price Target Upside: 6.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -1
• Revenue Forecast (FY): $1.31B

• Rating: 45 Neutral
• Price Target: $8.00 ▲(6.95% Upside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues, high leverage, and negative equity. While technical indicators show some short-term bullish trends, the negative P/E ratio and lack of dividend yield highlight valuation concerns. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Brand Collaboration

This collaboration with a prestigious institution like the New York City Ballet enhances brand prestige and can attract new customers, potentially boosting sales and strengthening market position.

E-commerce Presence

A strong online presence allows the company to reach a broader audience, adapt to changing consumer behaviors, and drive sales growth, especially as e-commerce continues to expand.

Brand Loyalty Program

A robust loyalty program encourages repeat purchases and customer retention, which can lead to sustained revenue streams and a competitive edge in the retail market.

Negative Factors

High Leverage

High leverage and negative equity indicate financial instability, which can limit the company's ability to invest in growth opportunities and increase vulnerability to economic downturns.

Declining Revenue

Declining revenues suggest challenges in maintaining market share and consumer interest, potentially impacting long-term profitability and business sustainability.

Weak Cash Generation

Weak cash generation limits the company's ability to fund operations and invest in strategic initiatives, posing risks to financial health and operational flexibility.

Children's Place Business Overview & Revenue Model

Company Description

Children's Place (PLCE) is a leading specialty retailer of children's apparel and accessories, primarily targeting infants, toddlers, and kids up to size 14. The company operates through a network of retail stores across North America and an online platform, offering a wide array of products including clothing, footwear, and accessories. Children's Place focuses on providing high-quality, stylish, and affordable clothing, and is known for its vibrant branding and seasonal collections.

How the Company Makes Money

Children's Place generates revenue primarily through the sale of its apparel and accessories in its retail stores and online. The company's revenue model is driven by direct sales to consumers, with key revenue streams including in-store transactions and e-commerce sales. Additionally, Children's Place benefits from a membership loyalty program, which encourages repeat purchases and enhances customer retention. The company also engages in promotional activities and seasonal sales to boost sales volume. Significant partnerships with manufacturers and suppliers ensure a steady flow of inventory, while collaborations with other brands for exclusive collections can also drive additional revenue. Overall, the company's strategic focus on value, quality, and customer experience plays a crucial role in its earnings.

Children's Place Financial Statement Overview

Summary

Children's Place faces significant financial challenges across all verticals. The income statement reflects declining revenues and persistent losses. The balance sheet shows high leverage and negative equity, raising concerns about financial stability. Cash flow issues are evident with negative growth and weak cash generation. The company needs to address these challenges to improve its financial health.

Income Statement

The income statement shows a declining trend in revenue with a negative growth rate of -1.59% TTM. Gross profit margin has decreased from 41.49% in 2022 to 31.89% TTM, indicating reduced profitability. The net profit margin is negative at -2.04% TTM, reflecting ongoing losses. Despite a slight improvement in EBIT and EBITDA margins TTM, they remain low, highlighting operational challenges.

Balance Sheet

The balance sheet reveals significant financial instability with a negative stockholders' equity of -$4.87 million TTM, leading to an extremely high and negative debt-to-equity ratio. The return on equity is also negative, indicating poor returns for shareholders. The equity ratio is concerning, showing high leverage and potential solvency risks.

Cash Flow

Cash flow analysis indicates a challenging situation with negative free cash flow growth of -92.95% TTM. The operating cash flow to net income ratio is very low at 0.63% TTM, suggesting weak cash generation relative to net income. The free cash flow to net income ratio is negative, further emphasizing cash flow difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.34B	1.39B	1.60B	1.71B	1.92B	1.52B
Gross Profit	426.98M	459.46M	445.27M	514.16M	794.74M	333.25M
EBITDA	50.37M	25.96M	-36.52M	138.96M	434.64M	-20.30M
Net Income	-27.30M	-57.82M	-154.54M	-1.14M	187.17M	-140.37M
Balance Sheet
Total Assets	805.10M	747.55M	800.31M	986.28M	1.04B	1.14B
Cash, Cash Equivalents and Short-Term Investments	7.80M	5.35M	13.64M	16.69M	54.79M	63.55M
Total Debt	164.53M	586.33M	463.84M	511.80M	450.86M	643.42M
Total Liabilities	809.96M	806.96M	809.33M	827.80M	811.99M	1.04B
Stockholders Equity	-4.87M	-59.41M	-9.02M	158.48M	225.47M	93.38M
Cash Flow
Free Cash Flow	-4.54M	-133.42M	65.24M	-53.80M	103.97M	-66.30M
Operating Cash Flow	3.66M	-117.59M	92.80M	-8.22M	133.28M	-35.72M
Investing Cash Flow	-8.20M	-15.83M	-27.79M	-45.95M	-29.29M	-30.37M
Financing Cash Flow	2.50M	128.40M	-68.27M	17.06M	-112.74M	60.93M

Children's Place Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.48
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 7.48 is below the 20-day moving average (MA) of 7.90, below the 50-day MA of 7.59, and above the 200-day MA of 6.45, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 30.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLCE.

Children's Place Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRI	66 Neutral	$1.15B	12.77	10.27%	4.92%	-0.34%	-61.00%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DBI	51 Neutral	$209.57M	―	-9.98%	4.59%	-4.63%	-637.55%
TLYS	48 Neutral	$44.80M	―	-43.51%	―	-11.10%	-10.31%
PLCE	45 Neutral	$160.27M	―	―	―	-12.08%	93.16%
CATO	45 Neutral	$68.73M	-7.52	-5.58%	―	-1.01%	65.04%
CURV	45 Neutral	$140.82M	45.51	―	―	-5.76%	-75.71%

Children's Place Corporate Events

The Children’s Place Reports Q2 2025 Results and Transformation Plans

The Children’s Place, Inc. is the largest pure-play children’s specialty retailer in North America, known for its omni-channel portfolio and digital-first model, offering fashionable and high-quality children’s apparel at value prices. In the second quarter of 2025, the company faced challenges due to adverse weather and macroeconomic conditions, leading to a 6.8% decrease in net sales compared to the previous year. Despite these challenges, the company saw positive momentum in its back-to-school season and improved inventory management, reducing inventory by $78 million from the prior year.

Children’s Place Announces New Compensation for Vice Chairman

On August 21, 2025, The Children’s Place, Inc. announced an additional compensation arrangement for board member Muhammad Asif Seemab, who was recently appointed as Executive Vice Chairman. Effective August 1, 2025, the arrangement includes an annual cash payment of $280,000, a $100,000 cash retainer for his Vice Chairman role, and eligibility for the company’s health and benefits plan, reflecting the company’s strategic approach to director compensation and governance.

The most recent analyst rating on (PLCE) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Children’s Place stock, see the PLCE Stock Forecast page.