The Children’s Place Reports Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
The Children’s Place (Nasdaq: PLCE) reported weaker fourth-quarter and full-year 2025 results, with net sales down and widening losses, while improving liquidity and operating cash flow. Key metrics: Q4 net sales $329.2M (-19.4%), FY net sales $1.209B (-12.8%), FY net loss $(88.3)M.
Management cites ecommerce execution issues, higher tariffs and inventory reserves as drivers of margin pressure, and notes actions including a Salesforce Customer Cloud migration, inventory reduction and cost efforts to prioritize free cash flow ahead of back-to-school.
Positive
- Operating cash flow improved by $125.7M year-over-year
- Inventory reduction of $74.5M vs prior year
- Total liquidity of $89.9M as of January 31, 2026
Negative
- Full-year net sales down 12.8% to $1.209B
- Fourth-quarter net sales down 19.4% to $329.2M
- Gross margin contracted 320 bps year-over-year to 29.9%
- Full-year net loss widened to $(88.3)M
News Market Reaction – PLCE
In the Apr 13 session, PLCE declined 28.46%, reflecting a significant negative market reaction. Argus tracked a peak move of +31.0% during that session. Argus tracked a trough of -6.2% from its starting point during tracking. Our momentum scanner triggered 42 alerts that day, indicating elevated trading interest and price volatility. Trading volume was exceptionally heavy at 5.2x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Dec 16 | Q3 2025 earnings | Negative | -36.9% | Q3 2025 sales decline, margin pressure, and increased net loss. |
| Sep 05 | Q2 2025 earnings | Negative | +15.8% | Q2 net sales drop and net loss despite outlining transformation benefits. |
| Jun 06 | Q1 2025 earnings | Negative | -32.2% | Q1 sales decline, large net loss, and 540 bps gross margin compression. |
| Apr 11 | FY 2024 earnings | Negative | -15.3% | Q4 and FY 2024 sales declines and continued net loss despite margin gains. |
| Dec 17 | Prelim Q4 2024 sales | Neutral | +3.1% | Preliminary Q4 sales up 3.4% but comps down 8.9% in partial period. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often triggered sharp moves, mostly negative, when results undershoot expectations or highlight ongoing margin and sales pressure.
Over the last five earnings‑tagged updates from Dec 2024 through Dec 2025, The Children’s Place has repeatedly reported declining net sales, compressed gross margins, and persistent net losses. Transformation and refinancing actions, including a $450M debt package and rights offering, aimed to stabilize liquidity and support strategic initiatives. However, price reactions to earnings have skewed negative, especially when margins deteriorated. Today’s FY 2025 results continue themes of sales pressure and losses but also highlight improved working capital and cash flow management.
Key Terms
comparable retail sales financial
gross margin financial
basis points financial
non-gaap financial
omni-channel technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Improvement in Operating Cash Flows by
SECAUCUS, N.J., April 10, 2026 (GLOBE NEWSWIRE) -- The Children’s Place, Inc. (Nasdaq: PLCE), one of the only pure-play children’s specialty retailers in North America with an omni-channel presence, today announced financial results for the Company’s fourth fiscal quarter and the full fiscal year ended January 31, 2026.
Muhammad Umair, President and Chief Executive Officer said, “While our fourth quarter results were disappointing, we are taking decisive action to turn this business around. The Children's Place brand remains strong, recently ranked 21st in TIME’s survey of “America’s most iconic companies”, and we are leveraging that foundation to drive our transformation. We are reigniting what makes our brand unique by delivering compelling product, design, and branding, with the consumer at the center of every decision we make.”
Mr. Umair continued, “We have moved aggressively to address our ecommerce challenges and in February 2026, we migrated to the Salesforce Customer Cloud platform, which we expect to stabilize our customer file and drive increased traffic through faster execution, sharper segmentation, and a superior customer experience. This was essential to evolving our tech platform, and we acted swiftly.”
Mr. Umair concluded, “Our transformation is creating real operating leverage. We are focused on reducing costs, margin expansion opportunities, and prioritizing free cash flow generation. We have strengthened our liquidity position and now have the financial flexibility to make the strategic investments needed to succeed during our critical back-to-school season. We know what needs to be done, we have a clear plan, and we are executing with urgency.”
The Company’s Executive Chairman, Turki S. AlRajhi, provides further details on the Company’s strategic initiatives and other business priorities, in his letter to shareholders that can be found on the Company’s corporate website at: https://corporate.childrensplace.com/chairmans-letters.
Fourth Quarter 2025 Results
Net sales decreased
Gross profit decreased
Selling, general, and administrative expenses were
Operating loss was
Net interest expense was
Provision (benefit) for income taxes was a benefit of
Net loss was
Fiscal Year-To-Date 2025 Results
Net sales decreased
Gross profit decreased
Selling, general, and administrative expenses were
Operating loss was
Net interest expense was
Provision (benefit) for income taxes was a benefit of
Net loss was
Store Update
During the fourth quarter, the Company opened 10 and closed 11 stores in the three months ended January 31, 2026, and ended the year with 498 stores, compared to 495 stores as of the end of the prior fiscal year.
Balance Sheet and Cash Flow
As of January 31, 2026, the Company had
Inventories were
Non-GAAP Reconciliation
The Company’s results are reported in this press release on a GAAP and as adjusted, non-GAAP basis. Adjusted net income (loss), adjusted net income (loss) per diluted share, adjusted gross profit, adjusted selling, general, and administrative expenses, and adjusted operating income (loss) are non-GAAP measures, and are not intended to replace GAAP financial information, and may be different from non-GAAP measures reported by other companies. The Company believes the income and expense items excluded as non-GAAP adjustments are not reflective of the performance of its core business, and that providing this supplemental disclosure to investors will facilitate comparisons of the past and present performance of its core business.
Please refer to the “Reconciliation of Non-GAAP Financial Information to GAAP” later in this press release, which sets forth the non-GAAP operating adjustments for the 13-week periods and 52-week periods ended January 31, 2026 and February 1, 2025.
About The Children’s Place
The Children’s Place is one of the only pure-play children’s specialty retailers in North America with an omni-channel presence. Its global retail and wholesale network includes two digital storefronts, 498 stores in North America, wholesale marketplaces and distribution in 12 countries through nine international franchise and wholesale partners. The Children’s Place designs, contracts to manufacture, and sells fashionable, high-quality, head-to-toe outfits predominantly at value prices, primarily under its proprietary brands: “The Children’s Place” and “Gymboree”. For more information, visit: www.childrensplace.com and www.gymboree.com.
Forward-Looking Statements
This press release contains or may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements relating to the Company’s strategic initiatives and results of operations, including adjusted net income (loss) per diluted share. Forward-looking statements typically are identified by use of terms such as “may,” “will,” “should,” “plan,” “project,” “expect,” “anticipate,” “estimate,” “believe” and similar words, although some forward-looking statements are expressed differently.
These forward-looking statements are based upon the Company’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results and performance to differ materially.
Some of these risks and uncertainties are described in the Company’s filings with the Securities and Exchange Commission, including in the “Part I, Item1A. Risk Factors” section of its annual report on Form 10-K for the fiscal year ended January 31, 2026.
Included among the risks and uncertainties that could cause actual results and performance to differ materially are the risk that the Company will be unable to achieve operating results at levels sufficient to fund and/or finance the Company’s current level of operations and repayment of indebtedness, the risk that changes in trade policy and tariff regimes, including newly imposed U.S. tariffs and any responsive non-U.S. tariffs, may impact the Company’s international manufacturing and operations or customers’ discretionary spending habits, the risk that the Company will be unsuccessful in gauging fashion trends and changing consumer preferences, the risks resulting from the highly competitive nature of the Company’s business and its dependence on consumer spending patterns, which may be affected by changes in economic conditions (including inflation), the risk that changes in the Company’s plans and strategies with respect to pricing, capital allocation, capital structure, investor communications and/or operations may have a negative effect on the Company’s business, the risk that the Company’s strategic initiatives to increase sales and margin, improve operational efficiencies, enhance operating controls, decentralize operational authority and reshape the Company’s culture are delayed or do not result in anticipated improvements, the risk of delays, interruptions, disruptions and higher costs in the Company’s global supply chain, including resulting from disease outbreaks, foreign sources of supply in less developed countries, more politically unstable countries, or countries where vendors fail to comply with industry standards or ethical business practices, including the use of forced, indentured or child labor, the risk that the cost of raw materials or energy prices will increase beyond current expectations or that the Company is unable to offset cost increases through value engineering or price increases, various types of litigation, including class action litigation brought under securities, consumer protection, employment, and privacy and information security laws and regulations, risks related to the existence of a controlling stockholder, and the uncertainty of weather patterns, as well as other risks discussed in the Company’s filings with the SEC from time to time.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contact: Investor Relations (201) 558-2400 ext. 14500
| THE CHILDREN’S PLACE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
| Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||
| January 31, 2026 | February 1, 2025 | January 31, 2026 | February 1, 2025 | ||||||||||||
| Net sales | $ | 329,233 | $ | 408,562 | $ | 1,208,830 | $ | 1,386,269 | |||||||
| Cost of sales | 251,868 | 291,977 | 847,272 | 926,808 | |||||||||||
| Gross profit | 77,365 | 116,585 | 361,558 | 459,461 | |||||||||||
| Selling, general and administrative expenses | 106,292 | 100,574 | 383,693 | 405,550 | |||||||||||
| Depreciation and amortization | 9,939 | 9,206 | 33,073 | 39,612 | |||||||||||
| Asset impairment charges | 2,004 | — | 2,004 | 28,000 | |||||||||||
| Operating income (loss) | (40,870 | ) | 6,805 | (57,212 | ) | (13,701 | ) | ||||||||
| Related party interest expense | (1,998 | ) | (1,939 | ) | (7,607 | ) | (6,493 | ) | |||||||
| Other interest expense, net | (6,375 | ) | (6,778 | ) | (25,466 | ) | (29,254 | ) | |||||||
| Loss before provision for income taxes | (49,243 | ) | (1,912 | ) | (90,285 | ) | (49,448 | ) | |||||||
| Provision (benefit) for income taxes | (4,688 | ) | 6,078 | (2,022 | ) | 8,371 | |||||||||
| Net loss | $ | (44,555 | ) | $ | (7,990 | ) | $ | (88,263 | ) | $ | (57,819 | ) | |||
| Loss per common share (1) | |||||||||||||||
| Basic | $ | (2.01 | ) | $ | (0.62 | ) | $ | (4.01 | ) | $ | (4.53 | ) | |||
| Diluted | $ | (2.01 | ) | $ | (0.62 | ) | $ | (4.01 | ) | $ | (4.53 | ) | |||
| Weighted average common shares outstanding (1) | |||||||||||||||
| Basic | 22,170 | 12,805 | 22,028 | 12,766 | |||||||||||
| Diluted | 22,170 | 12,805 | 22,028 | 12,766 | |||||||||||
(1) In connection with the completion of the rights offering on February 6, 2025, the Company’s weighted average common shares outstanding and basic and diluted loss per share were retroactively adjusted for all prior periods presented by a factor of 1.002.
| THE CHILDREN’S PLACE, INC. RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
| Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||
| January 31, 2026 | February 1, 2025 | January 31, 2026 | February 1, 2025 | ||||||||||||
| Net loss | $ | (44,555 | ) | $ | (7,990 | ) | $ | (88,263 | ) | $ | (57,819 | ) | |||
| Non-GAAP adjustments: | |||||||||||||||
| Asset impairment charges | 2,004 | — | 2,004 | 28,000 | |||||||||||
| Loss on extinguishment of debt | 1,183 | — | 2,223 | — | |||||||||||
| Restructuring costs | 180 | 498 | 2,665 | 11,678 | |||||||||||
| Fleet optimization | — | 571 | — | 1,428 | |||||||||||
| Accelerated depreciation | — | 432 | — | 2,246 | |||||||||||
| Change of control | — | — | — | 14,589 | |||||||||||
| Contract termination costs | — | — | — | 7,008 | |||||||||||
| Credit agreement / lender-required consulting fees | — | — | — | 2,390 | |||||||||||
| Canada distribution center closure | — | — | — | 781 | |||||||||||
| Professional and consulting fees | — | — | — | 580 | |||||||||||
| Provision for legal settlement | — | — | (46 | ) | (2,279 | ) | |||||||||
| Aggregate impact of non-GAAP adjustments | 3,367 | 1,501 | 6,846 | 66,421 | |||||||||||
| Income tax effect (1) | — | (3,113 | ) | — | (3,113 | ) | |||||||||
| Net impact of non-GAAP adjustments | 3,367 | (1,612 | ) | 6,846 | 63,308 | ||||||||||
| Adjusted net income (loss) | $ | (41,188 | ) | $ | (9,602 | ) | $ | (81,417 | ) | $ | 5,489 | ||||
| GAAP net loss per common share | $ | (2.01 | ) | $ | (0.62 | ) | $ | (4.01 | ) | $ | (4.53 | ) | |||
| Adjusted net income (loss) per common share | $ | (1.86 | ) | $ | (0.75 | ) | $ | (3.70 | ) | $ | 0.43 | ||||
| % of Net Sales (GAAP) | (13.5)% | (2.0)% | (7.3)% | (4.2)% | |||||||||||
| % of Net Sales (As adjusted) | (12.5)% | (2.4)% | (6.7)% | 0.4 | % | ||||||||||
(1) The tax effects of the non-GAAP items are calculated based on the statutory rate of the jurisdiction in which the discrete item resides, adjusted for the impact of any valuation allowance.
| THE CHILDREN’S PLACE, INC. RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
| Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||
| January 31, 2026 | February 1, 2025 | January 31, 2026 | February 1, 2025 | ||||||||||||
| Operating income (loss) | $ | (40,870 | ) | $ | 6,805 | $ | (57,212 | ) | $ | (13,701 | ) | ||||
| Non-GAAP adjustments: | |||||||||||||||
| Asset impairment charges | 2,004 | — | 2,004 | 28,000 | |||||||||||
| Restructuring costs | 180 | 498 | 2,665 | 11,678 | |||||||||||
| Fleet optimization | — | 571 | — | 1,428 | |||||||||||
| Accelerated depreciation | — | 432 | — | 2,246 | |||||||||||
| Change of control | — | — | — | 14,589 | |||||||||||
| Contract termination costs | — | — | — | 7,008 | |||||||||||
| Credit agreement / lender-required consulting fees | — | — | — | 2,390 | |||||||||||
| Canada distribution center closure | — | — | — | 781 | |||||||||||
| Professional and consulting fees | — | — | — | 580 | |||||||||||
| Provision for legal settlement | — | — | (46 | ) | (2,279 | ) | |||||||||
| Aggregate impact of non-GAAP adjustments | 2,184 | 1,501 | 4,623 | 66,421 | |||||||||||
| Adjusted operating income (loss) | $ | (38,686 | ) | $ | 8,306 | $ | (52,589 | ) | $ | 52,720 | |||||
| % of Net Sales (GAAP) | (12.4)% | 1.7 | % | (4.7)% | (1.0)% | ||||||||||
| % of Net Sales (As adjusted) | (11.8)% | 2.0 | % | (4.4)% | 3.8 | % | |||||||||
| THE CHILDREN’S PLACE, INC. RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
| Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||
| January 31, 2026 | February 1, 2025 | January 31, 2026 | February 1, 2025 | ||||||||||||
| Gross profit | $ | 77,365 | $ | 116,585 | $ | 361,558 | $ | 459,461 | |||||||
| Non-GAAP adjustments: | |||||||||||||||
| Change of Control | — | — | — | 905 | |||||||||||
| Aggregate impact of non-GAAP adjustments | — | — | — | 905 | |||||||||||
| Adjusted gross profit | $ | 77,365 | $ | 116,585 | $ | 361,558 | $ | 460,366 | |||||||
| % of Net Sales (GAAP) | 23.5 | % | 28.5 | % | 29.9 | % | 33.1 | % | |||||||
| % of Net Sales (As adjusted) | 23.5 | % | 28.5 | % | 29.9 | % | 33.2 | % | |||||||
| Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||
| January 31, 2026 | February 1, 2025 | January 31, 2026 | February 1, 2025 | ||||||||||||
| Selling, general and administrative expenses | $ | 106,292 | $ | 100,574 | $ | 383,693 | $ | 405,550 | |||||||
| Non-GAAP adjustments: | |||||||||||||||
| Restructuring costs | (180 | ) | (498 | ) | (2,665 | ) | (11,678 | ) | |||||||
| Fleet optimization | — | (571 | ) | — | (1,428 | ) | |||||||||
| Change of control | — | — | — | (13,684 | ) | ||||||||||
| Contract termination costs | — | — | — | (7,008 | ) | ||||||||||
| Credit agreement / lender-required consulting fees | — | — | — | (2,390 | ) | ||||||||||
| Canada distribution center closure | — | — | — | (781 | ) | ||||||||||
| Professional and consulting fees | — | — | — | (580 | ) | ||||||||||
| Provision for legal settlement | — | — | 46 | 2,279 | |||||||||||
| Aggregate impact of non-GAAP adjustments | (180 | ) | (1,069 | ) | (2,619 | ) | (35,270 | ) | |||||||
| Adjusted selling, general and administrative expenses | $ | 106,112 | $ | 99,505 | $ | 381,074 | $ | 370,280 | |||||||
| % of Net Sales (GAAP) | 32.3 | % | 24.6 | % | 31.7 | % | 29.3 | % | |||||||
| % of Net Sales (As adjusted) | 32.2 | % | 24.4 | % | 31.5 | % | 26.7 | % | |||||||
THE CHILDREN’S PLACE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| January 31, 2026 | February 1, 2025* | ||||||
| Assets: | |||||||
| Cash and cash equivalents | $ | 5,489 | $ | 5,347 | |||
| Accounts receivable | 25,967 | 42,701 | |||||
| Inventories | 325,100 | 399,602 | |||||
| Prepaid expenses and other current assets | 41,441 | 20,354 | |||||
| Total current assets | 397,997 | 468,004 | |||||
| Property and equipment, net | 81,658 | 97,487 | |||||
| Right-of-use assets | 164,495 | 161,595 | |||||
| Tradenames, net | 13,000 | 13,000 | |||||
| Other assets | 13,149 | 7,466 | |||||
| Total assets | $ | 670,299 | $ | 747,552 | |||
| Liabilities and Stockholders’ Deficit: | |||||||
| Revolving loan | $ | 131,078 | $ | 245,659 | |||
| Accounts payable | 108,481 | 126,716 | |||||
| Current portion of operating lease liabilities | 57,236 | 67,407 | |||||
| Accrued expenses and other current liabilities | 91,094 | 78,336 | |||||
| Total current liabilities | 387,889 | 518,118 | |||||
| Long-term debt | 97,588 | — | |||||
| Related party long-term debt | 107,554 | 165,974 | |||||
| Long-term portion of operating lease liabilities | 120,410 | 107,287 | |||||
| Other long-term liabilities | 11,041 | 15,584 | |||||
| Total liabilities | 724,482 | 806,963 | |||||
| Stockholders’ deficit | (54,183 | ) | (59,411 | ) | |||
| Total liabilities and stockholders’ deficit | $ | 670,299 | $ | 747,552 | |||
* Derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended February 1, 2025.
| THE CHILDREN’S PLACE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
| Fiscal Year Ended | |||||||
| January 31, 2026 | February 1, 2025 | ||||||
| Net loss | $ | (88,263 | ) | $ | (57,819 | ) | |
| Non-cash adjustments | 116,145 | 160,143 | |||||
| Working capital | (19,764 | ) | (219,918 | ) | |||
| Net cash provided by (used in) operating activities | 8,118 | (117,594 | ) | ||||
| Net cash used in investing activities | (17,381 | ) | (15,830 | ) | |||
| Net cash provided by financing activities | 6,967 | 128,398 | |||||
| Effect of exchange rate changes on cash and cash equivalents | 2,438 | (3,266 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 142 | (8,292 | ) | ||||
| Cash and cash equivalents, beginning of period | 5,347 | 13,639 | |||||
| Cash and cash equivalents, end of period | $ | 5,489 | $ | 5,347 | |||
