Children's Place Retail Stores (PLCE)
NASDAQ:PLCE
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Children's Place
(NASDAQ:PLCE)
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Rating:47Neutral
Price Target:
$4.50
▲(28.21% Upside)
Action:Reiterated
Date:06/03/26
PLCE scores low primarily due to weak financial performance (shrinking revenue, ongoing losses, and negative equity), which outweighs only moderately improving technical momentum. Valuation is also constrained by loss-making results and the absence of a dividend yield.
Positive Factors
Omnichannel Retail Model
Operating both company-owned stores and e-commerce gives the firm structural diversification of revenue and customer reach. This omnichannel footprint supports durable sales channels across seasons, allows higher lifetime customer capture, and reduces single-channel dependency over the next 2–6 months.
Negative Factors
Multi-year Revenue Declines
Consistent annual revenue declines signal weakening demand, loss of scale and diminished merchandising traction. Continued top-line erosion compresses operating leverage, pressures margins and hampers ability to invest in marketing or product, posing structural headwinds over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Omnichannel Retail Model
Operating both company-owned stores and e-commerce gives the firm structural diversification of revenue and customer reach. This omnichannel footprint supports durable sales channels across seasons, allows higher lifetime customer capture, and reduces single-channel dependency over the next 2–6 months.
Read all positive factors
Children's Place (PLCE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.19M
Dividend YieldN/A
Average Volume (3M)606.95K
Price to Earnings (P/E)―
Beta (1Y)3.02
Revenue Growth-12.80%
EPS Growth11.78%
CountryUS
Employees2,530
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-4.01
Shares Outstanding22,211,880
10 Day Avg. Volume1,449,483
30 Day Avg. Volume606,949
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 Cap7.69
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit1.83
Enterprise Value/Ebitda-27.53
Forecast
1Y Price Target
$4.00Price Target Upside13.96% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-3.95
Revenue Forecast (FY)$1.07B
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
The Children’s Place makes money primarily by selling children’s apparel, footwear, and accessories directly to consumers. Its core revenue stream is net sales generated through (1) company-operated physical retail stores and (2) digital sales thr...
Children's Place Earnings Call Summary
Earnings Call Date:Dec 03, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Jun 11, 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
16
Very Negative
Cash Flow
22
Negative
| Breakdown | Jan 2026 | Jan 2025 | Apr 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.21B | 1.39B | 1.60B | 1.71B | 1.92B |
| Gross Profit | 328.49M | 419.85M | 398.09M | 462.70M | 737.72M |
| EBITDA | -19.47M | 25.96M | -36.52M | 138.96M | 434.64M |
| Net Income | -88.26M | -57.82M | -154.54M | -1.14M | 187.17M |
Balance Sheet | |||||
| Total Assets | 670.30M | 747.55M | 800.31M | 986.28M | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 5.49M | 5.35M | 13.64M | 16.69M | 54.79M |
| Total Debt | 513.87M | 586.33M | 463.84M | 511.80M | 450.86M |
| Total Liabilities | 724.48M | 806.96M | 809.33M | 827.80M | 811.99M |
| Stockholders Equity | -54.18M | -59.41M | -9.02M | 158.48M | 225.47M |
Cash Flow | |||||
| Free Cash Flow | -9.26M | -133.42M | 65.24M | -53.80M | 103.97M |
| Operating Cash Flow | 8.12M | -117.59M | 92.80M | -8.22M | 133.28M |
| Investing Cash Flow | -17.38M | -15.83M | -27.79M | -45.95M | -29.29M |
| Financing Cash Flow | 6.97M | 128.40M | -68.27M | 17.06M | -112.74M |
Children's Place Technical Analysis
Negative
3.51
Price Trends
3.41
Positive
3.73
Negative
5.19
Negative
Market Momentum
0.11
Negative
49.26
Neutral
12.14
Positive
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 3.51 is below the 20-day moving average (MA) of 3.51, above the 50-day MA of 3.41, and below the 200-day MA of 5.19, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 12.14 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.
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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $156.41M | -47.50 | -21.26% | ― | 1.69% | 93.35% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $1.41B | 14.94 | 10.14% | 4.89% | 4.88% | -45.12% | |
51 Neutral | $428.33M | -50.02 | -2.97% | 2.68% | -3.87% | 39.59% | |
48 Neutral | $163.18M | -12.98 | 3.50% | ― | -10.09% | -232.12% | |
47 Neutral | $78.19M | -0.88 | 532.94% | ― | -12.80% | 11.78% | |
47 Neutral | $63.47M | -276.24 | -0.14% | ― | 1.82% | ― |
* Consumer Cyclical Sector Average
PLCE
Children's Place
3.52
-1.13
-24.30%
CRI
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38.19
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CATO
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DBI
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TLYS
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CURV
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Children's Place Corporate Events
Executive/Board ChangesShareholder Meetings
Children’s Place Shareholders Approve Governance and Compensation Measures
Positive
May 6, 2026
At its 2026 Annual Meeting of Stockholders, Children’s Place shareholders elected seven directors to one-year terms expiring in 2027 and approved BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending J...
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.