Children's Place (PLCE) AI Stock Analysis

• Market Cap: $89.47M
• Dividend Yield: N/A
• Average Volume (3M): 785.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• Revenue Growth: -12.15%
• EPS Growth: 75.86%
• Country: US
• Employees: 2,530
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Retail
• EPS (TTM): -1.52
• Shares Outstanding: 22,036,982
• 10 Day Avg. Volume: 1,487,419
• 30 Day Avg. Volume: 785,822
• PEG Ratio: 4.96
• Price to Book (P/B): 3.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.57
• Enterprise Value/Market Cap: 11.89
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 2.38
• Enterprise Value/Ebitda: 12.56
• 1Y Price Target: $6.00
• Price Target Upside: 50.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: $4.00 ▲(0.50%Upside)

The overall stock score is driven primarily by significant financial challenges, including declining revenues, persistent losses, and negative cash flow. Technical analysis also indicates bearish momentum, further weighing on the score. While recent corporate events show strategic initiatives to improve operations, they are not enough to offset the current financial and market pressures.

Children's Place Business Overview & Revenue Model

Company Description

The Children's Place, Inc. (PLCE) is a leading specialty retailer of children's apparel and accessories. The company primarily operates in the North American market, providing high-quality, stylish, and age-appropriate clothing for infants, toddlers, and children up to the age of 14. The Children's Place offers a range of products including tops, bottoms, dresses, outerwear, shoes, and accessories, both in-store and through its e-commerce platform. With a focus on value, quality, and convenience, the company aims to be the preferred shopping destination for children's fashion.

How the Company Makes Money

The Children's Place generates revenue through the sale of children's apparel and accessories in its retail stores and online platform. The company's key revenue streams include its physical retail locations, which provide a traditional shopping experience, and its e-commerce operations, which cater to a growing digital consumer base. Additionally, the company offers various promotions and loyalty programs to incentivize repeat purchases. Strategic partnerships and exclusive collections also contribute to the company's earnings, allowing it to offer unique products and expand its market reach.

Children's Place Financial Statement Overview

Summary

Children's Place is facing significant financial challenges. The income statement shows declining revenue and profitability, with negative net profit margins. The balance sheet reflects financial instability with negative equity and a high debt load, suggesting solvency concerns. Additionally, cash flow struggles with negative operating and free cash flow indicate an inability to cover expenses.

Income Statement

The income statement shows a declining trend in revenue and profitability over the years. The gross profit margin decreased from 41.8% in 2022 to 33.1% in 2025. The net profit margin has been negative for several periods, highlighting ongoing losses. Additionally, EBIT and EBITDA margins have also been negative or declining, indicating operational challenges.

Balance Sheet

The balance sheet highlights financial instability, with a negative stockholders' equity in 2025. The debt-to-equity ratio is not meaningful due to negative equity, while total liabilities exceed total assets, indicating potential solvency issues. The equity ratio has deteriorated from 19.9% in 2022 to a negative figure in 2025.

Cash Flow

Cash flow analysis reveals a struggle with cash generation, as operating cash flow turned negative in 2025. Free cash flow has also been negative, showing an inability to generate sufficient cash to cover capital expenditures. The operating cash flow to net income ratio further emphasizes the company's cash flow challenges.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
1.39B	1.60B	1.71B	1.92B	1.52B
	Gross Profit
459.46M	445.27M	514.16M	794.74M	333.25M
	EBIT
-13.70M	-83.80M	4.98M	275.65M	-161.39M
	EBITDA
25.96M	-36.52M	138.96M	434.64M	-20.30M
	Net Income Common Stockholders
-57.82M	-154.54M	-1.14M	187.17M	-140.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.35M	13.64M	16.69M	54.79M	63.55M
	Total Assets
747.55M	800.31M	986.28M	1.04B	1.14B
	Total Debt
586.33M	463.84M	511.80M	450.86M	643.42M
	Net Debt
580.98M	450.20M	495.11M	396.07M	579.87M
	Total Liabilities
806.96M	809.33M	827.80M	811.99M	1.04B
	Stockholders Equity
-59.41M	-9.02M	158.48M	225.47M	93.38M
Cash Flow		Free Cash Flow
-133.42M	65.24M	-53.80M	103.97M	-66.30M
	Operating Cash Flow
-117.59M	92.80M	-8.22M	133.28M	-35.72M
	Investing Cash Flow
-15.83M	-27.79M	-45.95M	-29.29M	-30.37M
	Financing Cash Flow
128.40M	-68.27M	17.06M	-112.74M	60.93M

Children's Place Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.98 is below the 20-day moving average (MA) of 5.62, below the 50-day MA of 5.81, and below the 200-day MA of 9.87, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 33.30 is Neutral, neither overbought nor oversold. The STOCH value of 2.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLCE.

Children's Place Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRI	67 Neutral	$1.18B	7.14	18.91%	3.13%	-3.39%	-28.96%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
CTRN	57 Neutral	$265.99M	―	-29.52%	―	1.85%	-337.77%
FL	56 Neutral	$2.31B	194.63	-12.85%	―	-2.62%	0.93%
DBI	54 Neutral	$125.48M	―	-9.20%	8.30%	-4.22%	-386.70%
GCO	49 Neutral	$234.99M	―	-3.07%	―	1.85%	22.34%
PLCE	40 Underperform	$89.47M	―	-521.67%	―	-12.15%	75.86%

Children's Place Corporate Events

Children’s Place Stockholders Approve Charter Amendments

At the Annual Meeting of Stockholders on May 7, 2025, Children’s Place stockholders approved several amendments to the company’s charter. These changes include allowing stockholders to act by written consent without a meeting, giving stockholders the right to fill board vacancies, and making housekeeping amendments, which were filed with the Delaware Secretary of State on the same day.

Children’s Place Announces Key Decisions at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on May 7, 2025, The Children’s Place, Inc. announced several key decisions. Stockholders voted on the election of six directors, ratified the appointment of BDO USA, P.C. as the independent accounting firm, and approved amendments to the company’s charter regarding stockholder rights and board vacancies. These decisions are expected to impact the company’s governance and operational strategies moving forward.

Children’s Place Reports Q4 2024 Financial Results

On April 11, 2025, The Children’s Place announced its financial results for the fourth quarter and full year 2024, highlighting a third consecutive quarter of adjusted operating profits. Despite a decrease in net sales due to strategic changes in e-commerce and brick-and-mortar operations, the company reported significant improvements in gross profit margin and liquidity position. The completion of a $90 million rights offering helped deleverage the balance sheet, while efforts to optimize marketing spend and enhance store portfolio are expected to support future growth. The company remains focused on delivering quality at accessible prices amidst potential market challenges.

Children’s Place Appoints New Chief Financial Officer

On March 17, 2025, The Children’s Place, Inc. announced the appointment of John Szczepanski as Chief Financial Officer, effective March 31, 2025. With over 20 years of finance experience, including roles at Ralph Lauren Corporation and Vince Holding Corp., Szczepanski will oversee various financial functions and report to Muhammad Umair, President and Interim CEO. This appointment is part of the company’s strategic efforts to enhance business operations and financial strategy for long-term success. Additionally, the company announced the appointments of Kristin Clifford as Senior Vice President, Head of Sourcing, and Smeeta Khetarpaul as Senior Vice President, Head of Marketing, both bringing extensive experience to drive growth and elevate the company’s brand positioning.