BUZZ-Children's Place up on back-to-school momentum, cost cutting efforts

Reuters09-08
BUZZ-Children's Place up on back-to-school momentum, cost cutting efforts

** Apparel retailer Children's Place PLCE.O up 4% to $5.65 after Friday’s after‑market Q2 update citing strong back‑to‑school momentum and new cost‑cut plans.

** Co targets $40 million in gross benefits over three years from streamlining operations

** PLCE aims to reduce payroll expenses to below $80 million in fiscal 2026, down from a peak of more than $120 million in 2023.

** "Investors are buying into Children’s Place’s bet that loyalty and leaner operations can deliver long-term growth," Zak Stambor, analyst with eMarketer says

** Company expects to mitigate about 80% of tariff impacts; now projects $20 million to $25 million in tariff and duty expenses in fiscal 2025.

** Q2 Revenue fell 6.8% to $298.01 million from a year ago

** PLCE down ~48% this year, as of last close

(Reporting by Sanskriti Shekhar)

((Sanskriti.Shekhar@thomsonreuters.com;))

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