The Children’s Place Disappoints, Sales Not Enough to Save Them!
The Children’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 industry’s growth of 2.2%.
In Detail: The Children’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 Children’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. Stockholders’ 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 Children’s Place. But don’t fret, there are still a few other top-ranked stocks in the same space to consider. Don’t miss out on the complete list of today’s Zacks #1 Rank stocks. Look into American Eagle Outfitters Inc., Abercrombie & Fitch Co., and Deckers Outdoor Corporation for brighter opportunities. See them now!