Children's Place (PLCE) AI Stock Analysis

• Market Cap: $99.31M
• Dividend Yield: N/A
• Average Volume (3M): 245.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.02
• Revenue Growth: -10.09%
• EPS Growth: 81.44%
• Country: US
• Employees: 2,530
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.18
• Shares Outstanding: 22,167,889
• 10 Day Avg. Volume: 200,664
• 30 Day Avg. Volume: 245,293
• 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: 6.69
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 1.80
• Enterprise Value/Ebitda: 29.09
• 1Y Price Target: $4.50
• Price Target Upside: 7.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $4.00 ▼(-4.31% Downside)
• Action: Upgraded Date: 02/21/26
• Date: Action: Upgraded 02/21/26

The score is held back primarily by weak financial quality (ongoing losses and contracting revenue) and elevated balance-sheet risk from negative equity with high debt. Technicals also lean bearish with a negative MACD and price below key longer-term moving averages. Positive operating and free cash flow provides some offset, but durability is not yet proven.

Positive Factors

Improved Cash Generation

TTM positive operating (~$54M) and free cash flow (~$40M) indicate the business is generating real cash despite accounting losses. Durable cash generation supports working capital, inventory funding and selective debt reduction or reinvestment, improving resilience if sustained.

Omni-channel Retail Model & Loyalty

A diversified revenue model—brick-and-mortar plus e-commerce—and an active loyalty program create repeat purchase behavior and distribution flexibility. This multi-channel footprint and retention mechanism support durable customer reach and smoother revenue across cycles.

Margin Expansion

A roughly 380bp gross margin improvement signals better sourcing, pricing or mix. Sustained margin expansion directly improves margin sustainability and the path to profitability, providing structural cushion against revenue softness if cost discipline holds.

Negative Factors

Weak Balance Sheet / Negative Equity

Negative trailing equity with ~ $578M debt implies thin capitalization and elevated refinancing risk. This long-term leverage profile limits financial flexibility, increases vulnerability to sales shocks, and can constrain investments or require costly refinancing under stress.

Declining Revenue and Ongoing Losses

Persistent TTM revenue decline and a negative net margin (~-4%) show the company is not consistently converting sales into profits. Structural top-line weakness undermines long-term earnings power and makes it harder to deleverage or fund growth without sustained revenue recovery.

Leadership Turnover

Recent departures (brand president exit and prior CFO/COO move) create execution risk for merchandising, digital strategy and cost initiatives. Prolonged leadership churn can slow strategic decisions and hinder consistent implementation of margin and revenue recovery plans.

Children's Place Business Overview & Revenue Model

Company Description

The Children's Place, Inc. operates as a children's specialty apparel retailer. The company operates in two segments, The Children's Place U.S. and The Children's Place International. It sells apparel, footwear, accessories, and other items for children; and designs, contracts to manufacture, and sells merchandise under the proprietary The Children's Place, Place, Baby Place, Gymboree, and Sugar & Jade brand names. As of January 29, 2022, the company had 672 stores in the United States, Canada, and Puerto Rico; online stores at childrensplace.com, gymboree.com, and sugarandjade.com; and seven international franchise partners operated 211 international points of distribution in 16 countries. The company was formerly known as The Children's Place Retail Stores, Inc. and changed its name to The Children's Place, Inc. in June 2014. The Children's Place, Inc. was founded in 1969 and is headquartered in Secaucus, New Jersey.

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

Results remain pressured: TTM revenue is down and profitability is still negative despite improved gross margin. The biggest risk is the balance sheet (slightly negative equity against substantial debt), partially offset by improved TTM operating and free cash flow that has turned positive but remains historically choppy.

Income Statement

TTM (Trailing-Twelve-Months) results show continued pressure: revenue is down (-3.787) and profitability remains negative (net margin about -4.0% with slightly negative operating profit). While gross margin improved versus 2024 (roughly 28.6% vs. 24.8%), the company is still not converting sales into earnings, and performance has been volatile over the last several years (strong 2022 profitability followed by losses in 2023–TTM).

Balance Sheet

Balance sheet risk is elevated: TTM (Trailing-Twelve-Months) equity is slightly negative (-$8.6M) against substantial debt (~$578M), which implies thin/negative capitalization and limited balance-sheet flexibility. Total assets are ~$763M, but the negative equity profile (also negative in multiple recent annual periods) heightens refinancing and downturn risk even though debt dollars are not accelerating meaningfully versus the prior year.

Cash Flow

Cash generation is a relative bright spot in TTM (Trailing-Twelve-Months): operating cash flow is positive (~$54M) and free cash flow is positive (~$40M), a sharp improvement from the most recent annual period where both were negative. However, cash flow has been choppy over time, and the relationship between operating cash flow and reported earnings remains mixed given ongoing net losses and a very weak/free-cash-flow growth figure in the dataset, suggesting durability is not yet proven.

Breakdown	TTM	Jan 2025	Apr 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	1.29B	1.39B	1.60B	1.71B	1.92B	1.52B
Gross Profit	368.60M	419.85M	398.09M	462.70M	737.72M	266.85M
EBITDA	22.84M	25.96M	-36.52M	138.96M	434.64M	-20.30M
Net Income	-51.70M	-57.82M	-154.54M	-1.14M	187.17M	-140.37M
Balance Sheet
Total Assets	762.51M	747.55M	800.31M	986.28M	1.04B	1.14B
Cash, Cash Equivalents and Short-Term Investments	7.25M	5.35M	13.64M	16.69M	54.79M	63.55M
Total Debt	577.70M	586.33M	463.84M	511.80M	450.86M	633.88M
Total Liabilities	771.12M	806.96M	809.33M	827.80M	811.99M	1.04B
Stockholders Equity	-8.61M	-59.41M	-9.02M	158.48M	225.47M	93.38M
Cash Flow
Free Cash Flow	39.73M	-133.42M	65.24M	-53.80M	103.97M	-66.30M
Operating Cash Flow	54.13M	-117.59M	92.80M	-8.22M	133.28M	-35.72M
Investing Cash Flow	-14.39M	-15.83M	-27.79M	-45.95M	-29.29M	-30.37M
Financing Cash Flow	-39.09M	128.40M	-68.27M	17.06M	-112.74M	60.93M

Children's Place Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 4.18 is above the 20-day moving average (MA) of 4.18, below the 50-day MA of 4.61, and below the 200-day MA of 5.77, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 56.30 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	68 Neutral	$1.50B	16.65	10.27%	4.89%	-0.34%	-61.00%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DBI	51 Neutral	$364.33M	―	-8.61%	2.68%	-5.16%	-3394.48%
TLYS	48 Neutral	$42.36M	―	-34.77%	―	-8.31%	36.10%
CURV	45 Neutral	$104.16M	-46.85	―	―	-7.33%	-114.80%
PLCE	44 Neutral	$99.31M	―	―	―	-10.09%	81.44%
CATO	42 Neutral	$60.43M	-6.57	-5.58%	―	-1.01%	65.04%

Children's Place Corporate Events

Children’s Place Announces Brand President Leadership Transition

On February 12, 2026, The Children’s Place, Inc. reported that its Brand President, Claudia Lima-Guinehut, had departed the company. The company stated that her departure was not due to any disagreement regarding its operations, policies, or practices, suggesting an orderly leadership transition without disclosed operational or governance disputes.

The most recent analyst rating on (PLCE) stock is a Sell with a $4.50 price target. To see the full list of analyst forecasts on Children’s Place stock, see the PLCE Stock Forecast page.