Business
The Children’s Place Reports Fourth Quarter and Full Year 2023 Results
SECAUCUS, N.J., May 06, 2024 (GLOBE NEWSWIRE) -- The Children’s Place, Inc. (Nasdaq: PLCE), an omni-channel children’s specialty portfolio of brands with an
About this update from Children's Place, Inc. (the)
[{"type":"text","content":"SECAUCUS, N.J., May 06, 2024 (GLOBE NEWSWIRE) -- The Children’s Place, Inc. (Nasdaq: PLCE), an omni-channel children’s specialty portfolio of brands with an industry-leading digital-first model, today announced financial results for the fourth quarter and fiscal year ended February 3, 2024. Fourth Quarter 2023 ResultsNet sales decreased $1.1 million, or 0.2%, to $455.0 million in the three months ended February 3, 2024, from $456.1 million in the three months ended January 28, 2023. The decrease in net sales compared to the fourth quarter 2022 was primarily due to reductions in retail sales due to lower store count and traffic declines to stores partially offset by continued strength in e-commerce. Comparable retail sales increased 4.8% for the quarter. Gross profit and adjusted gross profit increased by $19.2 million to $98.9 million in the three months ended February 3, 2024, compared to $79.7 million in the three months ended January 28, 2023. Adjusted gross profit leveraged 420 basis points to 21.7% of net sales, compared to 17.5% of net sales last year. The increase was primarily due to reductions in product input costs, including cotton and supply chain costs, which negatively impacted margins in the prior year. These improvements were partially offset by margin pressure due to aggressive promotions, as the Company sought to maximize revenue during the quarter, coupled with margin pressure in its wholesale business which underperformed relative to plan and due to increases in freight cost resulting from split shipments. Selling, general, and administrative expenses were $117.6 million in the three months ended February 3, 2024, compared to $130.5 million in the three months ended January 28, 2023. Adjusted selling, general & administrative expenses were $118.7 million in the three months ended February 3, 2024, compared to $128.5 million in the comparable period last year, and leveraged 210 basis points to 26.1% of net sales, primarily as a result of reductions in equity based compensation, significant reductions in store payroll and home office payroll, partially offset by planned increases in marketing and increases in professional fees. Operating loss was ($61.8) million in the three months ended February 3, 2024, compared to ($64.8) million in the three months ended January 28, 2023. Operating loss was impacted by an i...