Business
The Children’s Place Reports First Quarter 2023 Results
Reports Q1 GAAP EPS of ($2.33) versus $1.43 in Q1 2022 Reports Q1 Adjusted EPS of ($2.00) versus $1.05 in Q1 2022 Expects Double-Digit Operating Margin and
About this update from Children's Place, Inc. (the)
[{"type":"text","content":"Reports Q1 GAAP EPS of ($2.33) versus $1.43 in Q1 2022 Reports Q1 Adjusted EPS of ($2.00) versus $1.05 in Q1 2022 Expects Double-Digit Operating Margin and Adjusted EPS of Over $5.00 in the Back Half of 2023 SECAUCUS, N.J., May 24, 2023 (GLOBE NEWSWIRE) -- The Children’s Place, Inc. (Nasdaq: PLCE), the largest pure-play children’s specialty apparel retailer in North America, today announced financial results for the first quarter ended April 29, 2023. Jane Elfers, President and Chief Executive Officer, announced, “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.” Ms. Elfers continued, “Our Easter assortments from both our TCP and Gymboree brands performed exceptionally well. Our digital sales trend significantly outperformed our stores sales trend for the quarter. Digital represented 46% of our retail sales versus 45% in Q1 2022 and our digital traffic was up double digits for the quarter. Our Amazon business continued to outperform, with site sales up over 100% and traffic up over 200% for the quarter versus last year.” Ms. Elfers concluded, “Due to the ongoing outsized pressure on our core consumer from the challenging macro-economic environment, we have tempered both our top and bottom line expectations for the full year. However, with input cost pressures significantly abating in the back half of the year, combined with inventory levels that are projected to continue to decline versus last year, we continue to expect to deliver double digit operating margin in the back half of 2023.” First Quarter 2023 ResultsNet sales decreased $40.8 million, or 11.2%, to $321.6 million in the three months ended April 29, 2023, compared to $362.4 million in the three months ended April 30, 2022. The decrease in net sales was primarily due to the combination of the ongoing macro-economic environment and the resulting outsized pressure on our consumer. Comparable retail sales decreased 8.2% for the quarter. Gross profit decreased $45.4 million to $96.5 million or 30% of net sales in the three months ended April 29, 2023, compared to $141.9 million or 39.2% of net sales in the three months ended April 30, 2022. The 920 basis point decrease in gross margin was primarily the result of higher input costs, including cotton an...