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The Children's Place Reports Fourth Quarter and Full Year 2024 Results
PLCEThe Children's Place(PLCE) GlobeNewswire News Room·2025-04-11 20:30

Core Insights - The Children's Place, Inc. reported a net sales of 409millionforthefourthquarterand409 million for the fourth quarter and 1.386 billion for the full year, reflecting a decrease of 10.2% and 13.5% respectively compared to the previous year [4][12] - The company achieved a gross profit margin improvement to 29% for the fourth quarter and 33% for the full year, driven by reduced product input costs and optimized promotional strategies [6][13] - The company completed a 90millionrightsoffering,enhancingitsliquiditypositionandenablingsignificantdebtreduction[21][23]FinancialPerformance−Netsalesdecreasedby90 million rights offering, enhancing its liquidity position and enabling significant debt reduction [21][23] Financial Performance - Net sales decreased by 46.4 million, or 10.2%, in the fourth quarter, primarily due to a decline in e-commerce revenue and lower brick-and-mortar sales [4][12] - Comparable retail sales fell by 15.3% for the quarter, largely due to the planned decrease in e-commerce revenue [5] - Gross profit increased by 17.7millionto17.7 million to 116.6 million in the fourth quarter, with a gross margin rate increase of 680 basis points to 28.5% [6][8] Cost Management - Selling, general, and administrative expenses were reduced to 100.6millioninthefourthquarter,thelowestlevelinover15years,reflectingadecreaseinmarketingexpensesandpayroll[7][15]−Operatingincomeimprovedto100.6 million in the fourth quarter, the lowest level in over 15 years, reflecting a decrease in marketing expenses and payroll [7][15] - Operating income improved to 6.8 million in the fourth quarter, compared to an operating loss of (61.8)millioninthesameperiodlastyear[8][16]BalanceSheetandLiquidity−AsofFebruary1,2025,thecompanyhadtotalliquidityof(61.8) million in the same period last year [8][16] Balance Sheet and Liquidity - As of February 1, 2025, the company had total liquidity of 85.5 million, including 5.3millionincashandcashequivalents[21]−Therightsofferingallowedthecompanytoraise5.3 million in cash and cash equivalents [21] - The rights offering allowed the company to raise 90 million, significantly reducing its long-term debt [23][39] Strategic Initiatives - The company plans to refine its omni-channel strategy and enhance its product mix to better resonate with parents [2] - A new store was opened during the fourth quarter, marking the first new store in over two years, while 16 stores were closed, ending the year with 495 stores [20] - The company aims to strengthen its store portfolio and develop innovative designs for future store openings [2]