PLCE
The Children's Place, Inc.7.35
+0.11+1.52%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q4 '25)
No earnings call transcript available yet
Last Quarter (Q3 '25)
No earnings call transcript available
Key Stats
Market Cap
162.93MP/E (TTM)
-Basic EPS (TTM)
-0.84Dividend Yield
0%Recent Filings
10-Q
8-K
10-Q
Q2 FY2025 results
The Children's Place swung to an operating profit of $4.1M in Q2 FY2025 ended August 2, 2025, up from a $21.8M loss y/y, while net sales dipped 6.8% y/y to $298.0M (derived) on softer traffic amid tariff uncertainty; gross margin slipped 1.0 point to 34.0% from inventory adjustments and channel shifts, yet SG&A fell 6.7% y/y to $89.6M via cost controls. U.S. sales, 92% of total, drove the turnaround with 2.3% operating margin versus last year's impairment drag. Diluted EPS improved to $(0.24) from $(2.51), reconciling to 22.1M shares with no anti-dilution flagged. Cash climbed to $7.8M with $43.8M revolver availability under the $433M ABL maturing November 2026 at 7.6%, plus $108.4M related-party debt due 2027; free cash flow not disclosed in the 10-Q. A February 2025 rights offering raised $90M cash to repay debt. Yet competition squeezes pricing power in kids' apparel.
8-K
Q2 sales dip, transformation plan
The Children's Place reported Q2 fiscal 2025 net sales of $298 million, down 6.8% from last year, with comparable sales off 4.7%, yet swung to $4.1 million operating income from a prior loss, aided by lower SG&A and no asset impairments. Inventory dropped $78 million year-over-year, bolstering cash flow amid macroeconomic headwinds. The company launched a transformation initiative targeting over $40 million in gross savings over three years through cost cuts and store optimizations, while projecting $20-25 million in added tariff costs for 2025. Progress feels gradual.
8-K
Board boosts Seemab's pay package
The Children's Place board approved extra compensation for director Muhammad Asif Seemab, now Executive Vice Chairman, effective August 1, 2025, swapping his $140,000 annual equity for $280,000 cash while adding a $100,000 retainer and employee benefits. This related-party deal, greenlit during the annual review, aims to align incentives amid strategic shifts. Cash flows out faster now. Forward-looking risks include operational hurdles and market volatility.
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