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Children's Place (PLCE)
NASDAQ:PLCE
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Children's Place
(NASDAQ:PLCE)
Rating:41Neutral
Price Target:
$4.50
▼(-9.82% Downside)
Children's Place (PLCE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$115.27M
Dividend YieldN/A
Average Volume (3M)725.28K
Price to Earnings (P/E)―
Beta (1Y)2.18
Revenue Growth-12.15%
EPS Growth75.86%
CountryUS
Employees2,530
SectorConsumer Cyclical
Sector Strength80
IndustryApparel - Retail
Share Statistics
EPS (TTM)-1.52
Shares Outstanding22,167,889
10 Day Avg. Volume536,326
30 Day Avg. Volume725,277
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap5.65
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit1.49
Enterprise Value/Ebitda24.66
Forecast
1Y Price Target
$6.00Price Target Upside20.24% Upside
Rating ConsensusHold
Number of Analyst Covering1
Children's Place Business Overview & Revenue Model
Company DescriptionChildren's Place (PLCE) is a leading specialty retailer of children's apparel and accessories, primarily focusing on clothing for children aged newborn to 14 years. The company operates a vast network of retail stores across North America and maintains a significant online presence, offering a wide range of products that include everyday apparel, seasonal clothing, and accessories. Children's Place is known for its value-driven pricing and trendy designs, catering to the needs of parents seeking affordable yet stylish options for their children.
How the Company Makes MoneyChildren's Place generates revenue primarily through the sale of children's clothing and accessories in its retail stores and online. The company's revenue model is based on direct sales, which include both full-price and discounted items. Key revenue streams include in-store sales, e-commerce sales, and sales from outlet stores. The company often holds promotional events and clearance sales to stimulate sales volume. Additionally, Children's Place benefits from a strong brand loyalty program, which encourages repeat purchases. Significant partnerships with manufacturers and suppliers help maintain a steady supply of inventory, and the company also leverages its online platform to reach a broader customer base, contributing to its overall earnings.
Children's Place Earnings Call Summary
Earnings Call Date:Jun 06, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Sep 05, 2025
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.Q3-2024 Updates
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.
Inventory Reduction
Ending inventories were down 16%, exceeding expectations, contributing to a healthy inventory position entering the holiday season.
Successful Marketing Campaigns
Significant marketing campaigns including partnerships with Jonas Brothers and Mariah Carey delivered billions of impressions and high returns on ad spend.
Strong Wholesale Performance
The Amazon marketplace delivered an outstanding quarter with the largest week in history during Prime Day.
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%.
Increased Distribution Costs
Higher-than-planned distribution costs impacted the bottom line due to increased e-commerce volumes, higher labor costs, and delays in planned freight savings.
Gross Profit Margin Decrease
Gross profit margin decreased to 33.7% from 34.8% due to higher distribution and fulfillment expenses.
Interest Expense Increase
Interest expense increased to $7.9 million due to higher average borrowings and interest rates.
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
The financial performance of Children's Place is notably poor, characterized by declining revenues, negative profitability, high leverage, and negative cash flows. These issues suggest financial instability and a need for strategic restructuring.Income Statement
The company's income statement shows significant challenges, with a declining revenue trend from 2022 to TTM 2025. The TTM (Trailing-Twelve-Months) gross profit margin is 32.2%, which reflects a decrease compared to historical performance. The net profit margin is negative, indicating the company is not profitable, and EBIT and EBITDA margins are also negative for TTM, showing operational inefficiencies. Revenue growth has been negative, highlighting a concerning trend in sales performance.35
Negative
Balance Sheet
The balance sheet reveals a worrying financial position with a very high debt-to-equity ratio due to minimal stockholders' equity, even negative in some periods. The equity ratio is extremely low at 0.18% for TTM, reflecting high leverage and significant financial risk. Return on equity is not meaningful due to negative equity, and the company's assets are primarily funded by debt, which poses a risk.25
Negative
Cash Flow
Cash flow analysis highlights struggles with generating positive cash flow. The TTM free cash flow is negative, and the operating cash flow to net income ratio is not favorable, indicating cash flow issues. The free cash flow to net income ratio is also negative, underscoring inefficiencies in cash generation relative to earnings.30
Negative
| 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 |
| EBITDA | 25.96M | -36.52M | 138.96M | 434.64M | -20.30M |
| Net Income | -57.82M | -154.54M | -1.14M | 187.17M | -140.37M |
Balance Sheet | |||||
| Total Assets | 747.55M | 800.31M | 986.28M | 1.04B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 5.35M | 13.64M | 16.69M | 54.79M | 63.55M |
| Total Debt | 586.33M | 463.84M | 511.80M | 450.86M | 643.42M |
| 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
Positive
4.99
Price Trends
4.83
Positive
5.17
Negative
7.78
Negative
Market Momentum
0.02
Negative
55.50
Neutral
83.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLCE, the sentiment is Positive. The current price of 4.99 is above the 20-day moving average (MA) of 4.58, above the 50-day MA of 4.83, and below the 200-day MA of 7.78, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 83.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.04B | 7.71 | 15.95% | 7.33% | -1.46% | -41.93% | |
62 Neutral | $344.71M | ― | -4.81% | ― | 2.66% | -4772.54% | |
62 Neutral | $290.46M | ― | -13.32% | ― | 3.32% | 25.71% | |
61 Neutral | $17.59B | 13.29 | -5.28% | 3.05% | 1.25% | -14.67% | |
60 Neutral | $184.56M | ― | -9.20% | 5.04% | -4.22% | -386.70% | |
49 Neutral | $2.30B | 194.63 | -14.06% | ― | -3.58% | ― | |
41 Neutral | $115.27M | ― | -521.67% | ― | -12.15% | 75.86% |
* Consumer Cyclical Sector Average
Performance Comparison
PLCE
Children's Place
4.99
-0.24
-4.59%
CRI
Carter's
28.63
-35.26
-55.19%
CTRN
Citi Trends
36.78
22.58
159.01%
DBI
Designer Brands
3.97
-1.81
-31.31%
FL
Foot Locker
24.12
-3.31
-12.07%
GCO
Genesco
31.59
2.09
7.08%
Children's Place Corporate Events
Executive/Board Changes
Children’s Place Announces New Compensation for Vice Chairman
Neutral
Aug 25, 2025
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.
Executive/Board Changes
Children’s Place Appoints New Principal Accounting Officer
Neutral
Jul 3, 2025
On July 2, 2025, The Children’s Place, Inc. announced a significant leadership change with John Szczepanski being appointed as the Principal Accounting Officer, succeeding Laura Lentini, who has left the company. The departure of Ms. Lentini was amicable, with no disagreements regarding the company’s operations, policies, or practices.
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.