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The Children's Place(PLCE) - 2026 Q1 - Quarterly Results
PLCEThe Children's Place(PLCE)2025-06-06 20:30

Financial Performance - Net sales decreased by 25.8million,or9.625.8 million, or 9.6%, to 242.1 million for Q1 2025 compared to 267.9millioninQ12024[4]−Comparableretailsalesfellby13.6267.9 million in Q1 2024[4] - Comparable retail sales fell by 13.6% for the quarter, primarily due to a decline in e-commerce revenue[5] - Gross profit decreased by 21.9 million to 70.8million,withgrossmargindropping540basispointsto29.270.8 million, with gross margin dropping 540 basis points to 29.2%[6] - The operating loss was (24.1) million, an improvement from (28.0)millionintheprioryear[8]−Netlosswas(28.0) million in the prior year[8] - Net loss was (34.0) million, or (1.57)perdilutedshare,comparedto(1.57) per diluted share, compared to (37.8) million, or (2.98)perdilutedshareinQ12024[11]−Adjustednetlossperdilutedcommonsharewas(2.98) per diluted share in Q1 2024[11] - Adjusted net loss per diluted common share was 1.52 for Q1 2025, compared to 1.18forQ12024,indicatingadeteriorationinperformance[26]−Grossprofitdecreasedto1.18 for Q1 2024, indicating a deterioration in performance[26] - Gross profit decreased to 70,783,000 in Q1 2025 from 92,741,000inQ12024,reflectingadeclineof23.792,741,000 in Q1 2024, reflecting a decline of 23.7%[29] - The adjusted operating loss for Q1 2025 was 23,979,000, compared to 5,080,000inQ12024,reflectingasignificantincreaseinoperationalchallenges[28]CostManagement−Selling,general,andadministrativeexpenseswerereducedto5,080,000 in Q1 2024, reflecting a significant increase in operational challenges[28] Cost Management - Selling, general, and administrative expenses were reduced to 86.7 million from 109.1million,markingthelowestlevelinover15yearsforQ1[7]−Selling,generalandadministrativeexpenseswere109.1 million, marking the lowest level in over 15 years for Q1[7] - Selling, general and administrative expenses were 86,670,000 in Q1 2025, down from 109,094,000inQ12024,areductionof20.5109,094,000 in Q1 2024, a reduction of 20.5%[29] Liquidity and Cash Flow - As of May 3, 2025, the company had total liquidity of 84.4 million, including 5.7millionincashandcashequivalents[13]−Netcashusedinoperatingactivitieswas5.7 million in cash and cash equivalents[13] - Net cash used in operating activities was 42,958,000 for Q1 2025, compared to 110,756,000forQ12024,indicatingasignificantimprovementincashflowmanagement[34]−Thecompanyexperiencedanetcashincreaseof110,756,000 for Q1 2024, indicating a significant improvement in cash flow management[34] - The company experienced a net cash increase of 347,000 in Q1 2025, contrasting with a decrease of 679,000inQ12024[34]InventoryandAssets−Inventorieswere679,000 in Q1 2024[34] Inventory and Assets - Inventories were 422.2 million, slightly down from 425.2millionayearearlier,reflectingashiftinproductstrategy[14]−Thetotalcurrentassetsincreasedto425.2 million a year earlier, reflecting a shift in product strategy[14] - The total current assets increased to 500,609,000 as of May 3, 2025, from 468,004,000asofFebruary1,2025,showingagrowthof6.0468,004,000 as of February 1, 2025, showing a growth of 6.0%[31] - Total liabilities decreased to 778,187,000 as of May 3, 2025, from 806,963,000asofFebruary1,2025,areductionof3.5806,963,000 as of February 1, 2025, a reduction of 3.5%[31] Future Plans - The company plans to open new stores in the latter half of 2025 and introduce new product offerings, including licensing partnerships[3] - The company is focused on improving inventory turns and reducing inefficient SG&A spending to enhance long-term growth[3] Overall Performance - The Children's Place reported a net loss of 34,023,000 for the first quarter ended May 3, 2025, compared to a net loss of $37,795,000 for the same period in 2024, representing a 7.3% improvement[26] - The weighted average common shares outstanding were retroactively adjusted by a factor of 1.002 due to the completion of the rights offering on February 6, 2025[27]