Children's Place Q4 Highlights: Earnings Beat, Margin Pressure, Mixed Outlook & More

·2 min read

  • Children's Place Inc (NASDAQ: PLCEreported a fourth-quarter FY22 sales decline of 10.2% year-over-year to $456.1 million, beating the consensus of $455.3 million.

  • The decrease in net sales was primarily due to the impact of permanent store closures, and a slowdown in consumer demand.

  • Comparable retail sales decreased 12.8% for the quarter. Adjusted EPS loss of $(3.87) beat the consensus of $(4.09).

  • Adjusted gross profit decreased to $79.7 million in Q4 from $193.9 million in the comparable period last year, and the margin fell 2,070 basis points to 17.5%.

  • Adjusted SG&A was $128.5 million (+8% Y/Y) and deleveraged 480 basis points to 28.2% of net sales.

  • Adjusted operating loss was $(61) million for the quarter, compared to adjusted operating income of $61.2 million last year.

  • The company closed 59 stores in the twelve months ended Jan. 28, 2023, and is now planning to close ~100 more stores, mostly in 2023.

  • PLCE ended the quarter with 613 stores and square footage of 2.9 million, a decrease of 8.3% Y/Y.

  • The company held $16.7 million in cash and equivalents and $287 million outstanding on its revolving credit facility as of Jan. 28, 2023.

  • Inventories were $447.8 million as of Jan. 28, 2023, compared to $428.8 million a year ago.

  • The company repurchased 371.5 thousand shares for ~$14 million during the quarter.

  • 1Q23 Outlook: Children's Place sees net sales of $335 million-$345 million versus the consensus of $342.53 million.

  • It sees an adjusted net loss per share of $(1.60)-$(1.90) versus the consensus of $(1.21).

  • FY23 Outlook: Children's Place expects net sales of $1.62 billion-$1.66 billion versus the Street view of $1.71 billion.

  • It sees an adjusted operating margin of 3.5%-4.0% and adjusted EPS of $2.50-$3.00, below the consensus of $3.35.

  • Price Action: PLCE shares are trading higher by 4.46% at $43.01 on the last check Thursday.

  • Photo Via Company

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

This article Children's Place Q4 Highlights: Earnings Beat, Margin Pressure, Mixed Outlook & More originally appeared on


© 2023 Benzinga does not provide investment advice. All rights reserved.