HomeMost PopularInvestingThe Children's Place (PLCE) Q3 Earnings Miss, Sales View Up

The Children’s Place (PLCE) Q3 Earnings Miss, Sales View Up

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The Childrenโ€™s Place Disappoints, Sales Not Enough to Save Them!

The Childrenโ€™s Place, Inc. PLCE reported third-quarter fiscal 2023 results, missed the bottom line big time. Shares of this Zacks Rank #1 (Strong Buy) company have only increased by 1.1% in the past three months compared with the industryโ€™s growth of 2.2%.

In Detail: The Childrenโ€™s Place posted an adjusted earnings per share of $3.22, lagging behind the Zacks Consensus Estimate of $3.49 per share. The company also saw a decline in net sales of 5.7% year over year.

The company ended the quarter with 591 stores, and permanently shuttered 608 stores since 2013. It plans to close another 64 stores by the end of fourth-quarter fiscal 2023.

Other Financial Aspects: The Childrenโ€™s Place ended the quarter with cash and cash equivalents of $13.5 million. The company had $359 million outstanding on its revolving credit facility as of Oct 28, 2023. Stockholdersโ€™ equity at the end of the quarter was $118.1 million.

Outlook: For the fourth-quarter fiscal 2023, PLCE estimates net sales of $460-$465 million, representing a low single-digit growth from the year-ago figure. The company envisions quarterly adjusted operating profit to be approximately 2-3% of net sales. Adjusted net earnings per share are anticipated in the band of 25-45 cents in the fiscal fourth quarter. For fiscal 2023, management anticipates net sales to lie in the range of $1.605 billion to $1.610 billion compared with the previous guidance of $1.575-$1.585 billion.

Conclusion: The future looks bleak for The Childrenโ€™s Place. But donโ€™t fret, there are still a few other top-ranked stocks in the same space to consider. Donโ€™t miss out on the complete list of todayโ€™s Zacks #1 Rank stocks. Look into American Eagle Outfitters Inc., Abercrombie & Fitch Co., and Deckers Outdoor Corporation for brighter opportunities. See them now!

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