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Children's Place
(NASDAQ:PLCE)
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Rating:45Neutral
Price Target:
$2.00
▼(-25.65% Downside)
Action:Reiterated
Date:09/17/26
The score is weighed down primarily by weak financial health (negative equity, meaningful debt, and sustained losses) and bearish technicals (below major moving averages with negative MACD). A partial offset comes from improved recent cash generation and modestly supportive corporate actions, while valuation is difficult to assess given negative earnings and no dividend yield provided.
Positive Factors
Recent Cash Generation
Positive operating and free cash flow provide near-term internal funding for operations and reduce reliance on external capital. The rebound from deeply negative 2025 cash flow is constructive, although continued execution is needed to demonstrate that this improvement can persist.
Negative Factors
Declining Sales and Deep Losses
Contracting revenue and deeply negative profitability indicate that the retailer is not currently converting its merchandise model into sustainable earnings. Continued losses can restrict reinvestment in digital channels, stores, and inventory, making recovery more dependent on a successful operating turnaround.
Read all positive and negative factors
Positive Factors
Negative Factors
Recent Cash Generation
Positive operating and free cash flow provide near-term internal funding for operations and reduce reliance on external capital. The rebound from deeply negative 2025 cash flow is constructive, although continued execution is needed to demonstrate that this improvement can persist.
Read all positive factors
Children's Place (PLCE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.03M
Dividend Yield4.14%
Average Volume (3M)265.58K
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth-15.92%
EPS Growth-590.26%
CountryUS
Employees7,800
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-5.99
Shares Outstanding22,237,066
10 Day Avg. Volume347,071
30 Day Avg. Volume265,578
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)-1.64
Price to Sales (P/S)0.07
P/FCF Ratio-9.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$3.25Price Target Upside20.82% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-4.75
Revenue Forecast (FY)$1.11B
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 ...
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)...
Children's Place Earnings Call Summary
Earnings Call Date:Dec 03, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 12, 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
27
Negative
Balance Sheet
18
Very Negative
Cash Flow
46
Neutral
| 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 | 138.96M | 434.64M |
| 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
Negative
2.69
Price Trends
2.47
Negative
2.90
Negative
3.51
Negative
Market Momentum
-0.12
Positive
41.96
Neutral
54.22
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 2.69 is above the 20-day moving average (MA) of 2.36, above the 50-day MA of 2.47, and below the 200-day MA of 3.51, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 41.96 is Neutral, neither overbought nor oversold. The STOCH value of 54.22 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.15B | 5.70 | 20.84% | 3.19% | 5.17% | 41.92% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $313.39M | 18.58 | 5.83% | 3.26% | -0.84% | ― | |
56 Neutral | $130.61M | 60.14 | 2.37% | 12.82% | 6.07% | ― | |
49 Neutral | $234.34M | -26.00 | 4.27% | ― | -11.16% | -384.28% | |
45 Neutral | $48.03M | -0.36 | 172.19% | 4.14% | -15.92% | -590.26% | |
43 Neutral | $48.78M | -8.17 | -3.39% | 15.08% | -1.10% | 70.99% |
* Consumer Cyclical Sector Average
PLCE
Children's Place
2.11
-4.40
-67.59%
CRI
Carter's
31.00
3.30
11.89%
CATO
The Cato
2.42
-1.78
-42.38%
DBI
Designer Brands
6.29
2.89
84.73%
TLYS
Tilly's
4.47
2.47
123.50%
CURV
Torrid Holdings
2.40
0.65
37.14%
Children's Place Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Children’s Place Grants CEO Performance-Based Equity Incentive
Positive
Aug 14, 2026
On 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...
Executive/Board ChangesRegulatory Filings and Compliance
Children’s Place Board Restructures After Director Resignation
Negative
Jul 17, 2026
On July 13, 2026, The Children’s Place, Inc. announced that Douglas Edwards resigned from its board of directors, where he had served as Chair of the Corporate Responsibility, Sustainability Governance Committee and as a member of the Audit...
Executive/Board Changes
Children’s Place Announces Executive Director Leadership Transition
Neutral
Jul 10, 2026
On July 6, 2026, The Children’s Place, Inc. announced that Kim Roy stepped down from her role as Executive Director and employee, while continuing to serve on the company’s board of directors. The company emphasized that her departure ...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Children’s Place names Mithaq executive interim CEO
Neutral
Jul 7, 2026
On July 1, 2026, The Children’s Place entered into a $15 million Shariah-compliant, unsecured and subordinated term loan with controlling shareholder Mithaq Capital as the first draw under a $40 million credit commitment, permanently reducin...
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.