Children's Place Posts Narrower Than Expected Q2 Loss; Sees Q3 Adj. EPS Below Market; Cuts FY23 View

(RTTNews) - Specialty apparel retailer Children's Place Inc. (PLCE) reported Thursday that its second-quarter net loss was $35.4 million, or $2.82 per share, compared to net loss of $13.3 million, or $1.01 per share a year ago.

Adjusted net loss was $26.5 million, or $2.12 per share, compared to loss of $11.7 million, or $0.89 per share in the comparable period last year.

On average, four analysts polled by Thomson Reuters expected loss of $2.13 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales decreased 9.3 percent to $345.6 million from $380.9 million a year ago. The Street was looking for sales of $342.64 million. The decrease was primarily due to the impact of a slowdown in consumer demand.

Looking ahead for the third quarter, the company expects adjusted net income per share to be in the range of $3.55 to $3.65, and net sales in the range of $470 million to $475 million, representing an approximately 7 percent decrease as compared to the prior year.

Analysts expect earnings of $3.67 per share on sales of $466.39 million for the quarter.

For the second half, adjusted net income per share is estimated to be in the range of $5.00 to $5.25 on net sales in the range of $910 million to $920 million, a decrease in the mid-single digit percentage range.

Further, for fiscal 2023, Children's Place is narrowing its previously provided guidance, and now expects net income per share to be in the range of $1.00 to $1.25 and net sales in the range of $1.575 billion to $1.585 billion.

The company previously expected adjusted earnings in a range of $1.00 to $1.50 per share on net sales between $1.575 billion and $1.590 billion.

Analysts expect the firm to register earnings of $0.88 per share on sales of $1.56 billion for the year.

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