- Children's Place Inc PLCE reported third-quarter FY21 sales growth of 31.2% year-on-year, to $558.23 million, missing the analyst consensus of $566.42 million. Comparable retail sales were 36.2% for the quarter.
- The gross profit increased 67.6 Y/Y to $244.8 million, with the margin expanding 953 basis points to 43.8%. Adjusted gross margin expanded 868 basis points to 43.9%.
- Operating income for the quarter jumped nearly five-fold to $113.8 million. Adjusted operating margin extended 1,349 basis points to 20.9%.
- Adjusted EPS of $5.43 beat the analyst consensus of $4.40.
- The company held $67.1 million in cash and equivalents as of October 30, 2021.
- "While we are only a few weeks in, Q4 is off to a very strong start. We continue to operate at a high level, while navigating the ever-changing COVID landscape. We remain firmly on offense and we look forward to continuing to deliver accelerated operating margin expansion for 2021 and beyond," said CEO Jane Elfers.
- Children's Place is not providing EPS guidance citing continued uncertainty created by the COVID-19 pandemic.
- Children's Place's board approved an additional share repurchase for up to $250 million of stock. The company had $48 million authorization remaining at Q3-end.
- Children's Place also announced refinancing of its revolving credit facility and term loan by a new lending group.
- Price Action: PLCE shares are trading higher by 4.94% at $109.71 on the last check Thursday.
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