The Children's Place, Inc. (NASDAQ:PLCE) Q1 2023 Earnings Conference Call May 24, 2023 8:00 AM ET Company Participants Jane Elfers - President and Chief Executive Officer Maegan Markee - Senior Vice President, Digital Marketing Sheamus Toal - Chief Financial Officer Conference Call Participants Jim Chartier - Monness, Crespi, Hardt Jeff Lick - B. Riley Financial Jay Sole - UBS Operator Good morning and welcome to The Children's Place First Quarter 2023 Earnings Conference Call. On the call today are Jane El ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fifty-two weeks ended January 28, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number 0-23071 THE CHILDREN'S PLACE, INC. (Exact name of registrant as specified in its charter) | ...

The Children’s Place, Inc. (NASDAQ:PLCE) Q4 2022 Earnings Conference Call March 16, 2023 8:00 AM ET Company Participants Jane Elfers - President and Chief Executive Officer Sheamus Toal - Chief Financial Officer Maegan Markee - Senior Vice President, Digital Marketing Josh Truppo - Vice President, Financial Planning and Analysis Conference Call Participants Jay Sole - UBS James Chartier - Monness, Crespi, Hardt & Co. Dana Telsey - Telsey Advisory Group Marni Shapiro - The Retail Tracker Operator Good morn ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 29, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number 0-23071 THE CHILDREN'S PLACE, INC. (Exact name of registrant as specified in its chart ...

The Children's Place, Inc. (NASDAQ:PLCE) Q3 2022 Results Conference Call November 17, 2022 8:00 AM ET Company Participants Jane Elfers - President & Chief Executive Officer Sheamus Toal - Chief Financial Officer Maegan Markee - Senior Vice President, Digital Marketing Josh Truppo - Vice President, Financial Planning & Analysis Conference Call Participants Dana Telsey - Telsey Advisory Group Jim Chartier - Monness Crespi & Hardt Jay Sole - UBS Marni Shapiro - Retail Tracker Operator Good morning, and welcome ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number 0-23071 THE CHILDREN'S PLACE, INC. (Exact name of registrant as specified in its charter) ...

The Children's Place, Inc. (NASDAQ:PLCE) Q2 2022 Earnings Conference Call August 18, 2022 8:00 AM ET Company Participants Jane Elfers - President & Chief Executive Officer Rob Helm - Chief Financial Officer Conference Call Participants Jay Sole - UBS Dana Telsey - Telsey Advisory Group Susan Anderson - B. Riley Kelly Crago - Citi Marni Shapiro - Retail Tracker Operator Good morning and welcome to The Children's Place Second Quarter 2022 Earnings Conference Call. On the call today are Jane Elfers, President ...

Financial Performance - Net sales decreased by $73.1 million, or 16.8%, to $362.4 million in Q1 2022 from $435.5 million in Q1 2021, primarily due to the impact of COVID-19 stimulus relief lapsing and inflation [103]. - Comparable retail sales decreased by 16.9% for Q1 2022 [103]. - Gross profit decreased by $46.3 million to $141.9 million in Q1 2022, with gross margin dropping 406 basis points to 39.2% of net sales [104]. - Operating income fell by $46.6 million to $19.3 million in Q1 2022, representing 5.3% of net sales, a decrease of 982 basis points [105]. - Net income decreased by $25.4 million to $19.8 million, or $1.43 per diluted share, in Q1 2022 compared to $45.2 million, or $3.01 per diluted share, in Q1 2021 [105]. - The Children's Place U.S. net sales fell by $71.7 million or 17.9% to $328.0 million in Q1 2022 compared to $399.7 million in Q1 2021 [120]. - Total e-commerce sales accounted for 42.1% of net sales in Q1 2022, slightly down from 42.6% in Q1 2021 [122]. Expenses and Costs - Selling, general, and administrative expenses increased by $2.3 million to $109.0 million in Q1 2022, representing 30.1% of net sales, a decrease of 558 basis points [125]. - Increased costs of goods and services, including raw materials and transportation, are expected to impact operations for the remainder of 2022 [100]. Share Repurchase and Store Closures - The company repurchased approximately 0.7 million shares for $38.8 million during Q1 2022, with $218.6 million remaining under the share repurchase program [106]. - The company closed 534 stores since 2013, including 7 stores in Q1 2022, and plans to close approximately 40 stores this year [109]. Cash Flow and Capital Expenditures - Cash used in operating activities was $18.8 million in Q1 2022, compared to $16.6 million in Q1 2021, primarily due to inventory timing issues [146]. - Cash used in investing activities increased to $11.0 million in Q1 2022 from $6.7 million in Q1 2021, driven by capital expenditure timing [147]. - Cash provided by financing activities increased to $33.9 million in Q1 2022 from $24.5 million in Q1 2021, driven by additional net borrowings [148]. - Total capital expenditures are expected to be approximately $55 million in Fiscal 2022, up from $29.3 million in Fiscal 2021, focusing on digital and supply chain initiatives [149]. Debt and Borrowings - As of April 30, 2022, the company had $249.5 million in borrowings under its ABL Credit Facility, with a 10% change in interest rates not materially impacting interest expense [152]. - The outstanding balance of the Term Loan was $50.0 million as of April 30, 2022, with a 10% change in the three-month LIBOR Rate not materially affecting interest expense [153]. Foreign Operations and Currency Risk - Net assets in Canada and Hong Kong amounted to $70.7 million as of April 30, 2022, with a 10% change in foreign currency exchange rates potentially impacting net investment by $7.1 million [154]. - The company held $51.4 million of cash and cash equivalents in foreign subsidiaries, with $36.2 million in Hong Kong and $10.4 million in Canada [155]. - A 10% change in foreign currency exchange rates could have resulted in a $3.0 million change in net sales and a $3.8 million change in total costs and expenses for Q1 2022 [157]. - The company imports most merchandise from countries including Vietnam, Cambodia, and China, making it vulnerable to political and economic changes in these regions [158]. Strategic Initiatives - The company continues to focus on strategic growth initiatives, including superior product offerings, digital transformation, and fleet optimization [107]. - The digital capabilities have been enhanced with a redesigned responsive site and mobile application to improve customer experience and support e-commerce operations [108]. Working Capital - The working capital deficit improved by $66.8 million to a deficit of $30.2 million at April 30, 2022, compared to a deficit of $97.0 million at May 1, 2021 [133].

Financial Data and Key Metrics Changes - The company reported an adjusted EPS of $1.50, down from $3.25 in Q1 2021 and up from $0.36 in Q1 2019 [21] - Net sales decreased by $73 million or 17% to $362 million compared to $435 million in Q1 2021 and decreased by $50 million compared to $412 million in Q1 2019 [21] - Adjusted gross margin decreased by 429 basis points to 39.2% of net sales compared to 43.4% in Q1 2021, but was significantly above the 36.7% gross margin in Q1 2019 [25] - Adjusted operating income decreased by $50 million to $21 million, with a margin of 5.7% of net sales compared to 16.2% in the previous year and increased from 1.6% in Q1 2019 [28] Business Line Data and Key Metrics Changes - Digital sales represented 45% of total retail sales for Q1, up from 44% in Q1 2021, but consolidated digital sales decreased by 18% compared to Q1 2021 [12][24] - Store net sales were down 20% versus Q1 2021, with comparable retail sales down 16.9% versus Q1 2021 and down 1.4% versus Q1 2019 [22][24] Market Data and Key Metrics Changes - U.S. net sales decreased by $79 million or 21% to $306 million compared to $385 million in Q1 2021, while Canadian net sales increased by $1 million or 2% to $31 million [21] - Monthly sales flow showed February sales up low-single digits, March down approximately 35%, and April down approximately 7% compared to the previous year [23] Company Strategy and Development Direction - The company is focused on a multi-pronged transformation strategy with four key initiatives: superior product, digital transformation, fleet optimization, and alternate channels of distribution [16] - The structural reset of the business model aims to deliver double-digit operating margins and EPS for 2022 and beyond, despite a projected mid-single digit decline in sales for the year [10][35] Management's Comments on Operating Environment and Future Outlook - Management noted that unprecedented levels of inflation are expected to persist into 2023, impacting lower-income consumers significantly [9] - The company is tempering its top-line expectations for 2022 due to the macro environment and is planning for a mid-single digit decline in sales [10][36] - Management expressed confidence in achieving significant progress in 2022 compared to pre-pandemic levels, despite ongoing challenges [16] Other Important Information - The company closed seven locations in Q1 and anticipates closing 40 stores for the full year 2022, maintaining financial flexibility in its lease portfolio [33] - The company plans for capital expenditures in the range of $55 million for fiscal year 2022, primarily allocated to digital and supply chain fulfillment initiatives [42] Q&A Session Summary Question: Thoughts on AUR increases and pricing plans - Management acknowledged the challenges faced in Q1 due to stimulus impacts and noted that AUR increases were achieved through successful Easter assortments [45][46] Question: Inventory position and promotional risks - Management expressed confidence in inventory health, stating that they are not concerned about needing to promote to move through inventory [60][62] Question: Competitive landscape and potential promotions - Management indicated that they are monitoring competitors' promotional activities but do not foresee needing to make drastic changes to their pricing strategy [68][70] Question: P&L guidance for Q2 - Management highlighted that gross margins are under pressure due to inbound freight expenses and that SG&A costs are lower due to accelerated store closures [64][66]

Financial Performance - The Children's Place's Q1 2022 net sales were $362 million, a 17% decrease compared to $435 million in Q1 2021 and a 12% decrease compared to $412 million in Q1 2019[9] - The company's Q1 2022 adjusted operating income was 5.7%, a decrease of 1050 basis points compared to last year, but an increase of 410 basis points compared to 2019[9] - Q1 2022 adjusted EPS was $1.05, compared to $0.36 in 2019, representing a 192% increase[13] - The company returned $39 million to shareholders through share repurchases in Q1 2022[15, 16] Digital Performance - Digital penetration accounted for 45% of revenue[4] - Mobile transactions, including mobile app, accounted for 73% of total transactions in Q1 2022[21, 25] - Mobile App user base increased by 76% in the trailing 12 months[21, 25] - App customers drive a 16% increase in AOV and 50% increase in revenue per visit vs non-App customers[25, 26] Brand & Social Media - The company experienced a 40% increase in social follower growth compared to Q4[30] - The Children's Place brand saw a 66% increase in engagement rate vs Q4 2021[32] - Gymboree experienced a 45% increase in follower count and a 70% increase in engagement rate vs Q4 2021[33]