The Children's Place(PLCE) - 2026 Q1 - Quarterly Results

Financial Performance - Net sales decreased by $25.8 million, or 9.6%, to $242.1 million for Q1 2025 compared to $267.9 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 $70.8 million, with gross margin dropping 540 basis points to 29.2%[6] - The operating loss was $(24.1) million, an improvement from $(28.0) million in the prior year[8] - Net loss was $(34.0) million, or $(1.57) per diluted share, compared to $(37.8) million, or $(2.98) per diluted share in Q1 2024[11] - Adjusted net loss per diluted common share was $1.52 for Q1 2025, compared to $1.18 for Q1 2024, indicating a deterioration in performance[26] - Gross profit decreased to $70,783,000 in Q1 2025 from $92,741,000 in Q1 2024, reflecting a decline of 23.7%[29] - The adjusted operating loss for Q1 2025 was $23,979,000, compared to $5,080,000 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 $109.1 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 $109,094,000 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 $5.7 million in cash and cash equivalents[13] - Net cash used in operating activities was $42,958,000 for Q1 2025, compared to $110,756,000 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 $679,000 in Q1 2024[34] Inventory and Assets - Inventories were $422.2 million, slightly down from $425.2 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 $468,004,000 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 $806,963,000 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]