Children's Place AI Stock Analysis
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Children's Place (PLCE) AI Stock Analysis
Children's Place
(NASDAQ:PLCE)
PLCE scores low primarily due to distressed financial condition (deep losses, declining sales, and negative equity with meaningful debt) and the Chapter 11 filing, both of which elevate solvency and dilution/restructuring risk. Technical indicators also reflect pronounced downside momentum. Recent positive operating/free cash flow provides some near-term liquidity relief but does not outweigh the balance-sheet and bankruptcy-driven risks.
Children's Place (PLCE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $9.87M
- Dividend Yield
- ―
- Average Volume (3M)
- 9.98M
- Price to Earnings (P/E)
- -0.1
- Beta (1Y)
- 2.32
- Revenue Growth
- -15.92%
- EPS Growth
- -590.26%
- Country
- US
- Employees
- 7,800
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Apparel - Retail
Children's Place Business Overview & Revenue Model
Company Description
The Children's Place, Inc. operates as a specialized retailer focusing on apparel for children. Its operations are divided into two primary segments: The Children's Place U.S. and The Children's Place International. The company designs, contracts the...
How the Company Makes Money
The Children’s Place makes money primarily by selling children’s apparel and accessories directly to consumers through two main channels: (1) e-commerce, where customers purchase products via the company’s websites and digital storefronts, and (2) re...
Children's Place Earnings Call Summary
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
Negative 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
Financials indicate severe stress. Profitability has deteriorated with declining TTM revenue (~-4.8%) and deep losses (TTM net margin ~-11.8%). The balance sheet is the biggest weakness with negative equity (TTM about -$139M) alongside sizable debt, increasing refinancing/covenant risk. Cash flow is the main offset (TTM operating cash flow ~+$49M and free cash flow ~+$23M), but it has been volatile and not yet proven durable given ongoing losses.
Income Statement
27NegativeBalance Sheet
18Very NegativeCash Flow
46Neutral| Breakdown | TTM | Jan 2026 | Jan 2025 | Apr 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.13B | 1.21B | 1.39B | 1.60B | 1.71B | 1.92B |
| Gross Profit | 295.94M | 328.49M | 419.85M | 398.09M | 462.70M | 737.72M |
| EBITDA | -60.23M | -26.31M | 25.96M | -36.52M | 50.03M | 334.08M |
| Net Income | -133.02M | -88.26M | -57.82M | -154.54M | -1.14M | 187.17M |
Balance Sheet | ||||||
| Total Assets | 742.31M | 670.30M | 747.55M | 800.31M | 986.28M | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 7.18M | 5.49M | 5.35M | 13.64M | 16.69M | 54.79M |
| Total Debt | 622.55M | 513.87M | 586.33M | 463.84M | 511.80M | 450.86M |
| Total Liabilities | 881.28M | 724.48M | 806.96M | 809.33M | 827.80M | 811.99M |
| Stockholders Equity | -138.97M | -54.18M | -59.41M | -9.02M | 158.48M | 225.47M |
Cash Flow | ||||||
| Free Cash Flow | 23.02M | -9.26M | -133.42M | 65.24M | -53.80M | 103.97M |
| Operating Cash Flow | 49.26M | 8.12M | -117.59M | 92.80M | -8.22M | 133.28M |
| Investing Cash Flow | -26.24M | -17.38M | -15.83M | -27.79M | -45.95M | -29.29M |
| Financing Cash Flow | -22.41M | 6.97M | 128.40M | -68.27M | 17.06M | -112.74M |
Children's Place Technical Analysis
Price Trends
Market Momentum
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 0.44 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 1.48, and below the 200-day MA of 2.85, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 33.38 is Neutral, neither overbought nor oversold. The STOCH value of 15.34 is Positive, 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.
Latest Risks Added
3 New RisksChildren's Place Peers Comparison
Overall Rating
DBI71Outperform
CRI63Neutral
TLYS52Neutral
CURV49Neutral
CATO39Underperform- PLCE39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| DBI | 71Outperform | $337.93M | 19.42 | 5.83% | 3.11% | -0.84% | ― |
| CRI | 63Neutral | $1.27B | 5.49 | 22.38% | 2.95% | 5.01% | 144.54% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| TLYS | 52Neutral | $127.55M | 59.15 | 2.37% | ― | 6.07% | ― |
| CURV | 49Neutral | $227.36M | -24.83 | 4.27% | ― | -11.16% | -384.28% |
| CATO | 39Underperform | $45.20M | -7.55 | -3.39% | ― | -1.10% | 70.99% |
| PLCE | 39Underperform | $4.41M | -0.07 | 172.19% | ― | -15.92% | -590.26% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| PLCE | Children's Place Retail Stores | 0.44 | -7.24 | -94.22% | |
| CRI | Carter's Inc | 33.87 | 4.23 | 14.29% | |
| CATO | Cato Corporation | 2.27 | -1.08 | -32.24% | |
| DBI | Designer Brands | 6.43 | 2.94 | 84.19% | |
| TLYS | Tilly's | 4.29 | 3.03 | 240.48% | |
| CURV | Torrid Holdings, Inc. | 2.23 | 1.11 | 99.11% |
Children's Place Corporate Events
Children’s Place Files for Chapter 11 Bankruptcy Protection
NegativeOn November 3, 2026, The Children’s Place entered an exclusive consulting agreement with Tiger Capital Group, SB360 Capital Partners and GA Retail Solutions to manage covered merchandise and furniture, fixtures and equipment sales in the United State...
Children’s Place Leadership Changes Continue With Chairman Resignation
NegativeOn October 30, 2026, Kim Roy resigned from The Children’s Place board, effective immediately; the company said it was not related to disagreement over operations, policies or practices. On November 1, President and Interim Chief Executive Officer Muh...
Children’s Place Grants Retention Bonus to Chief Financial Officer
PositiveOn October 19, 2026, The Children’s Place granted a one-time cash retention award of $550,000 to Chief Financial Officer John Szczepanski under a letter agreement that defines the payment, vesting, and employment conditions attached to the award. The...
Children’s Place Adds Financial Expert to Board, Audit Committee
PositiveOn October 2, 2026, The Children’s Place appointed Elizabeth A. LaPuma to its board of directors and Audit Committee, with the move publicly announced on October 8, 2026. LaPuma, an independent director and SEC- and Nasdaq-qualified audit committee f...
Children’s Place Secures New Subordinated Term Loan Financing
PositiveOn September 24, 2026, The Children’s Place entered into a Shariah-compliant, unsecured and subordinated $25 million term loan with controlling shareholder Mithaq Capital SPC as the second advance under a $40 million credit commitment, reducing the r...
Children’s Place Grants CEO Performance-Based Equity Incentive
PositiveOn August 11, 2026, Mithaq Capital SPC, the controlling shareholder of The Children’s Place, entered into a Restricted Stock Transfer Agreement with Vice Chairman, President and Interim CEO Muhammad Asif Seemab to transfer 500,000 restricted common s...
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.
Date of analysis: Nov 13, 2026