Why Children's Place (PLCE) Shares Are Plunging Today - Children's Place (NASDAQ:PLCE)

Children's Place Inc PLCE reported a second-quarter FY22 sales decline of 8% year-on-year to $380.89 million, missing the consensus of $382.42 million.
The decrease in sales was primarily due to a slowdown in consumer demand resulting from the unprecedented inflation impacting customers.
Comparable retail sales decreased 8.7% for the quarter.
The gross profit decreased 31.2% Y/Y to $115.5 million, with the margin contracting 1,030 basis points to 30.3%. Adjusted gross margin contracted 1,046 basis points to 30.2%.
The operating loss for the quarter was $(13.8) million versus an operating income of $37.8 million a year ago.
Adjusted EPS of $(0.89) missed the analyst consensus of $0.56.
The company held $28.2 million in cash and equivalents as of July 30, 2022.
Inventories for Q2 rose 33.6% Y/Y to $616.4 million.
Outlook: Children's Place sees FY22 sales of about $1.725 billion versus the Street view of $1.76 billion and adjusted EPS of about $7.00, below the consensus of $7.95.
It expects Q3 sales of about $500 million, versus the consensus of $507.8 million. Q3 Adjusted EPS of about $3.95 against the estimate of $3.94.
Price Action: PLCE shares are trading lower by 15.47% at $46.45 on the last check Wednesday.

Children's Place Shares Plummet As Inflation Batters Q2 Earnings