Children's Place: Updating The Thesis

Kingdom Capital
5.01K Followers

Summary

  • Children's Place is a specialty retailer of children's clothing with $1.6B in revenues, focusing on millennial moms.
  • PLCE has faced challenges due to the pandemic and inflated costs, but these headwinds have now abated.
  • The company has optimized its store base, reduced costs, and expects significant improvements in margins and debt/EV balance.

Dressing closet with baby clothes arranged on hangers.

iulianvalentin

Compelling investment opportunities should be easy to explain. Last December, I publicized my thesis for owning Children's Place (NASDAQ:PLCE), which has largely transpired without the stock responding. Am I crazy, or is the market wrong? I recently got the

This article was written by

5.01K Followers
Deep value investor focused primarily on microcap stocks. Registered Investment Advisor located in Virginia.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PLCE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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