Kids clothing retailer Children's Place Q3 sales drop 13% amid e-commerce challenges

Reuters12-17
Kids clothing retailer Children's Place Q3 sales drop 13% amid e-commerce challenges

Overview

  • Children's retailer's fiscal Q3 net sales fell 13% yr/yr due to e-commerce challenges

  • Company opened five new stores in Q3, plans further expansion

  • Company completed refinancing to improve liquidity and support growth strategies

Outlook

  • Children's Place plans 15-20 new stores in H1 fiscal 2026

  • Company expects $25-30 mln tariff impact in H1 fiscal 2026

Result Drivers

  • E-COMMERCE CHALLENGES - Co cited volatility in e-commerce business as a major factor in Q3 sales decline

  • NEW STORE PERFORMANCE - New stores outperformed existing ones, driving 2% growth in comparable sales

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

$339.50 mln

Q3 Adjusted EPS

-$0.18

Q3 EPS

-$0.19

Q3 Adjusted Net Income

-$4 mln

Q3 Net Income

-$4.30 mln

Analyst Coverage

  • The one available analyst rating on the shares is "hold"

  • The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

  • Wall Street's median 12-month price target for Children's Place Inc is $8.00, about 10.5% above its December 15 closing price of $7.24

Press Release: ID:nGNX8r7mjK

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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