Children's Place Stock Slides As Q2 Sales Miss Estimates

Children's Place Inc PLCE reported second-quarter FY21 sales growth of 12.2% year-on-year, to $413.9 million, missing the analyst consensus of $417.31 million. Comparable retail sales were 14.1% for the quarter.
Gross profit rose 150.2% Y/Y to $167 million. Adjusted gross margin expanded 2,168 basis points to 40.6%.
The operating margin was 9.1%, and operating income for the quarter was $37.8 million.
The company held $64 million in cash and equivalents as of July 31, 2021. It generated $13.3 million in operating cash flow in Q2.
Adjusted EPS was $1.71 versus $(2.68) last year.
Children's Place did not provide EPS guidance, citing uncertainty created by the COVID-19 pandemic.
Meanwhile, the company said it experienced a significant acceleration in back-to-school sales during the last two weeks of July.
Price Action: PLCE shares are trading lower by 3.38% at $97.18 on the last check Wednesday.