Children's Place Posts Mixed Q4 Results, Bottom-Line Beats Consensus

Children's Place Inc PLCE reported fourth-quarter FY21 sales growth of 7.4% year-on-year, to $507.80 million, missing the consensus of $537.73 million. Comparable retail sales increased 13.3% for the quarter.
The gross profit increased 38.6% Y/Y to $193.8 million, with the margin expanding 860 basis points to 38.2%. Adjusted gross margin expanded 776 basis points to 38.2%. Operating income for the quarter jumped 303.5% to $58.1 million. Adjusted operating margin extended 656 basis points to 12.1%.
Adjusted EPS of $3.02 beat the analyst consensus of $2.85.
The company held $54.8 million in cash and equivalents as of January 29, 2022. Inventories rose 10.5% Y/Y to $428.8 million as of January 29, 2022.
"We are facing significant headwinds in 2022 including decade-high cotton pricing, record inflation, lapping unprecedented stimulus payments from last year, and continued global freight disruptions," said CEO Jane Elfers.
The company ended the quarter with 672 stores and square footage of 3.2 million, a decrease of 10% compared to last year.
Children's Place is not providing EPS guidance, citing a lack of near-term visibility to top-line demand based on the unprecedented stimulus released into the economy one year ago.
Meanwhile, it expects to deliver double-digit EPS and double-digit operating margin for FY22.
Price Action: PLCE shares are trading lower by 0.66% at $57.62 on the last check Wednesday.