Tom Werner
It isn't exactly the best time to be an apparel retailer and The Children's Place, Inc. (NASDAQ:PLCE) isn't an exception. The company is reporting declining revenues (Y/Y) and rising costs which have pushed it to an operating loss in Q2.
Children's Place: Consumer And Shipping Troubles Overshadow Ecommerce Gains
Summary
- The Children's Place reported its first operating loss in nearly two years in Q2.
- After FY21 boom, revenues are expected to decline to below Pre-COVID levels in FY22 as consumer tailwinds turn to headwinds.
- The 50%+ stock price haircut YTD has significantly de-risked an investment in Children's Place, but the foreseeable future for retail is dim.
- Children's Place continues to make large strides in growing its digital segment which now contributes to half of the total sales.
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