The Children's Place(PLCE) - 2025 Q4 - Annual Results

Financial Performance - Net sales for the fourth quarter were $409 million, a decrease of$46.4 million or 10.2% compared to the same period last year[6]. - For the full year, net sales decreased by $216.2 million or 13.5$1.386 billion, driven by declines in e-commerce and brick-and-mortar sales[14]. - Net sales for the fourth quarter ended February 1, 2025, were $408.562 million, a decrease of 10.2$455.034 million for the same period in 2024[34]. - For the fiscal year ended February 3, 2024, net sales were $1.386 billion, down from$1.602 billion in the previous fiscal year, representing a decline of 13.5%[34]. Profitability - Gross profit margin improved to 29% for the fourth quarter and 33% for the full year, reflecting a significant increase from previous periods[1]. - Adjusted net income for the full year was $5.5 million, a significant turnaround from an adjusted net loss of$(103.3) million in the prior year[20]. - The net loss for the fourth quarter was $7.990 million, significantly improved from a net loss of$128.836 million in the same quarter last year[34]. - The adjusted operating income for the fiscal year was $52.720 million, compared to an adjusted operating loss of$32.490 million in the previous year[37]. - Net loss for the fiscal year ended February 1, 2025, was $57,819 thousand, an improvement compared to a net loss of$154,541 thousand for the fiscal year ended February 3, 2024[44]. Expenses and Cost Management - Selling, general, and administrative expenses were reduced to $100.6 million in the fourth quarter, the lowest level in over 15 years[9]. - Selling, general and administrative expenses decreased to$100.574 million in the fourth quarter, down 14.5% from $117.587 million in the prior year[34]. - The company is focused on optimizing its fleet and restructuring costs to better align with market demands and consumer preferences[30]. Liquidity and Cash Flow - The company raised$90 million through a rights offering, enhancing its liquidity position[2]. - Cash and cash equivalents decreased from $13,639 thousand at the beginning of the period to$5,347 thousand at the end of the period, a decline of approximately 60.8%[44]. - The company reported net cash used in operating activities of $117,594 thousand for the fiscal year ended February 1, 2025, compared to net cash provided by operating activities of$92,800 thousand for the previous year[44]. - Net cash provided by financing activities was $128,398 thousand for the fiscal year ended February 1, 2025, compared to net cash used in financing activities of$(68,268) thousand for the previous year[44]. Store Operations - The company opened its first new store in over two years during the fourth quarter, while closing 16 stores, ending the year with 495 stores[21]. - Comparable retail sales decreased by 15.3% for the quarter, primarily due to a planned reduction in e-commerce revenue[7]. Strategic Initiatives - The company plans to enhance its omni-channel strategy and improve its product mix to drive profitable sales in fiscal 2025[4]. - The company plans to continue its strategic initiatives to enhance operational efficiencies and improve sales margins despite ongoing market challenges[30]. Balance Sheet - Total assets decreased from $800,308 thousand in February 3, 2024, to$747,552 thousand in February 1, 2025, representing a decline of approximately 6.6%[40]. - Total liabilities remained relatively stable, decreasing slightly from $809,327 thousand in February 3, 2024, to$806,963 thousand in February 1, 2025[40]. - Total current liabilities decreased from $616,404 thousand in February 3, 2024, to$518,118 thousand in February 1, 2025, a reduction of approximately 16%[40]. - The company’s stockholders' deficit increased from $(9,019) thousand in February 3, 2024, to$(59,411) thousand in February 1, 2025[40]. - The number of shares of common stock outstanding increased from 12,782 thousand to 22,013 thousand post-rights offering[43].