- Children's Place Inc PLCE reported a first-quarter FY23 sales decline of 11.2% year-on-year to $321.64 million, missing the consensus of $338.46 million. Comparable retail sales decreased 8.2% for the quarter.
- Gross profit decreased 32% Y/Y to $96.5 million, with the margin contracting 920 basis points to 30%.
- The operating loss for the quarter was $(30.1) million compared to an income of $19.3 million last year.
- Adjusted EPS of $(2.00) missed the analyst consensus of $(1.83).
- The company held $18.2 million in cash and equivalents as of April 29, 2023.
- Inventories for Q1 fell 8.2% Y/Y to $504.2 million.
- The company ended the first quarter of 2023 with 599 stores, a 9% decline Y/Y.
- "Our first quarter results were negatively impacted by the ongoing macro-tension which resulted in outsized pressure on our core customer by limiting their purchasing power," said President and CEO Jane Elfers.
- The company has now taken a more cautious consumer outlook, citing significant macro-economic headwinds.
- Outlook: Children's Place sees FY23 sales of $1.575 billion - $1.590 billion (prior $1.62 billion - $1.66 billion) versus the Street view of $1.65 billion and adjusted EPS of $1.00 - $1.50 (prior $2.50 - $3.00), below the consensus of $2.15.
- PLCE expects Q2 sales of $340 million - $345 million, below the consensus of $358.28 million. Q2 Adjusted EPS of $(2.15) - $(2.20), against the Street view of $(1.56).
- Price Action: PLCE shares are trading lower by 16.2% at $19.90 in premarket on the last check Wednesday.
- Photo Via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
