Todd Campbell
Long/short equity, growth, medium-term horizon, registered investment advisor

Children's Place: E-Commerce Offers Upside

Little followed Children's Place (NASDAQ:PLCE) sells clothes for children aged 1 day to 10 years old. The company's 1,100 stores are stocked with everything from active wear to shoes and just about all of it is sold under the store's own private label.

Three catalysts should drive future growth for Children's Place:

1. Rising contribution from outlets,

2. Growth in e-commerce, and

3. Expansion into new markets.

Growth through outlets, e-commerce, and new markets.

The company estimates the market for children's apparel in the United States is $25 billion. Just about a third of that spending is captured by mass merchandisers.

The majority of the company's stores, roughly 53%, are found in premium malls. Another 22% are located...

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