Business
The Children’s Place Reports Third Quarter 2022 Results
Reports Q3 GAAP EPS of $3.26 versus $5.30 in Q3 2021 and $2.77 in Q3 2019Reports Q3 Adjusted EPS of $3.33 versus $5.43 in Q3 2021 and $3.03 in Q3 2019Updates
About this update from Children's Place, Inc. (the)
[{"type":"text","content":"Reports Q3 GAAP EPS of $3.26 versus $5.30 in Q3 2021 and $2.77 in Q3 2019Reports Q3 Adjusted EPS of $3.33 versus $5.43 in Q3 2021 and $3.03 in Q3 2019Updates Full Year 2022 Adjusted EPS Guidance to $4.05 to $4.30 SECAUCUS, N.J., Nov. 17, 2022 (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 third quarter ended October 29, 2022. Jane Elfers, President and Chief Executive Officer announced, “Our Q3 sales were slightly stronger than our projections. August top line represented approximately 39% of the quarter. Post Labor Day sales were soft, however we experienced a significant top line lift later in the month of September and into mid-October as a result of cooler weather across the northern parts of the country, combined with the launch of three powerful celebrity marketing campaigns. Sales significantly decelerated the last two weeks of October. Gross margin was approximately 300 basis points below our expectations due to transitory supply chain pressure from elevated freight, distribution, and transportation costs. Our AUR outperformed our expectations, increasing 4% for the quarter, due to the strength of our product and our successful marketing efforts.” Ms. Elfers continued, “Digital represented 50% of our retail sales in Q3 versus 48% in 2021 and 37% in 2019. E-commerce traffic held up well during the quarter at positive 6% versus last year. We continue to deliver industry-leading digital results supported by the combination of our structural reset since the onset of the pandemic, our increased marketing investments, and our focus on optimizing our channel results. Digital is our highest operating margin channel and based on the strength of our digital business and our increased investments in this channel, digital is projected to represent an industry-leading 50% of total 2022 retail sales.” Ms. Elfers continued, “Our Q3 marketing results were very encouraging, with U.S. acquisition up 7% versus 2021 and up 29% versus 2019. Digital acquisition was up 7% versus 2021 and up 84% versus 2019, and store acquisition was up 7% versus 2021, despite a lower store count versus last year. Due to our targeted branding efforts, we dominated the kids category across social media. Our brands represented 60...