Children's Place (PLCE)
NASDAQ:PLCE
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Children's Place
(NASDAQ:PLCE)
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Rating:44Neutral
Price Target:
$4.00
▲(15.94% Upside)
Action:ReiteratedDate:02/28/26
The score is primarily held down by weak financial performance—ongoing losses, contracting revenue, and an elevated balance-sheet risk profile (negative equity against substantial debt). Technicals also lean weak with negative MACD and the stock below key moving averages. A positive near-term offset is improved TTM operating/free cash flow and a constructive leadership appointment, but these are not yet enough to outweigh the core risks.
Positive Factors
Improving cash generation
TTM positive operating and free cash flow mark a structural improvement versus prior periods, providing the company with internal liquidity to fund inventory, service debt, and invest in operations. If sustained, stronger cash generation reduces reliance on external financing and supports execution of turnaround plans.
Negative Factors
Negative equity and elevated leverage
Slightly negative equity and large absolute debt create limited capitalization and reduce financial flexibility. This structural balance sheet weakness heightens refinancing and covenant risk, constrains investments, and leaves the company vulnerable to weaker sales or rising rates over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
TTM positive operating and free cash flow mark a structural improvement versus prior periods, providing the company with internal liquidity to fund inventory, service debt, and invest in operations. If sustained, stronger cash generation reduces reliance on external financing and supports execution of turnaround plans.
Read all positive factors
Children's Place (PLCE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$76.48M
Dividend YieldN/A
Average Volume (3M)245.76K
Price to Earnings (P/E)―
Beta (1Y)3.06
Revenue Growth-10.09%
EPS Growth81.44%
CountryUS
Employees2,530
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.18
Shares Outstanding22,167,889
10 Day Avg. Volume176,401
30 Day Avg. Volume245,757
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)-2.10
Price to Sales (P/S)0.09
P/FCF Ratio-0.94
Enterprise Value/Market Cap8.46
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit1.76
Enterprise Value/Ebitda28.32
Forecast
1Y Price Target
$4.50Price Target Upside30.43% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.95
Revenue Forecast (FY)$1.26B
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 ch...
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 transacti...
Children's Place Earnings Call Summary
Earnings Call Date:Dec 03, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Apr 10, 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
28
Negative
Balance Sheet
15
Very Negative
Cash Flow
52
Neutral
| 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
Negative
3.45
Price Trends
3.87
Negative
4.97
Negative
5.48
Negative
Market Momentum
-0.17
Negative
41.46
Neutral
56.54
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 3.45 is below the 20-day moving average (MA) of 3.47, below the 50-day MA of 3.87, and below the 200-day MA of 5.48, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 41.46 is Neutral, neither overbought nor oversold. The STOCH value of 56.54 is Neutral, 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% | |
56 Neutral | $143.23M | -2.54 | -21.26% | ― | -8.31% | 36.10% | |
52 Neutral | $1.26B | 12.82 | 10.27% | 4.89% | -0.34% | -61.00% | |
49 Neutral | $308.80M | -37.20 | -2.97% | 2.68% | -5.16% | -3394.48% | |
46 Neutral | $176.78M | -16.58 | 0.97% | ― | -7.33% | -114.80% | |
44 Neutral | $76.48M | -9.20 | 289.32% | ― | -10.09% | 81.44% | |
42 Neutral | $61.20M | -9.84 | -3.88% | ― | -1.01% | 65.04% |
* Consumer Cyclical Sector Average
PLCE
Children's Place
3.45
-3.54
-50.64%
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3.10
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12.73%
DBI
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107.50%
TLYS
Tilly's
4.70
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147.37%
CURV
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-65.17%
Children's Place Corporate Events
Business Operations and StrategyExecutive/Board Changes
Children’s Place appoints industry veteran Kim Roy director
Positive
Feb 27, 2026
On February 23, 2026, The Children’s Place appointed Kim Roy, a veteran executive with leadership experience at Ralph Lauren, Ann Taylor and Liz Claiborne, as Executive Director and a member of its board of directors, effective March 2, 2026...
Executive/Board Changes
Children’s Place Announces Brand President Leadership Transition
Neutral
Feb 12, 2026
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...
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.