PLCE execs noted results were impacted negatively by lapping the unprecedented stimulus period and were also affected by unseasonably cold weather in many key markets.
There is also no question that inflation is a drag on earnings for PLCE. Adjusted gross margin deleveraged 429 basis points to 39.2% of sales, primarily the result of higher inbound transportation expenses and the deleverage of fixed expenses resulting from the decline in net sales, partially offset by higher merchandise margins in both channels.
"Due to these persistently high levels of inflation and the lack of visibility into its impact on the balance of the year, we are tempering our top line expectation for 2022 and we are now planning for a mid-single digit decline in sales for 2022."
The Children's Place (PLCE) said it is not providing EPS guidance at this time.
Shares of PLCE fell 16.01% premarket to $36.30 after dropping 10.42% on Wednesday amid the retail sector battering.