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olivLaw · US equity research

The Children's Place, Inc. PLCE

Retail-Family Clothing Stores · SIC 5651 · Vertical: Retail-Family Clothing Stores (SIC 5651)

0.24USD−10.74% · 1 dayClose 04 Nov 2026

The Children's Place is the largest pure-play children's specialty apparel retailer in North America, selling mainly at value prices under its own brands The Children's Place and Gymboree. In fiscal 2025 the company reported net sales of 1.209 billion USD, down 12.8%, in an environment where its target customers are cutting discretionary spending.

At the close of 04 Nov 2026, The Children's Place, Inc. (PLCE) stock was 0.24 USD (−10.74% on the day), with market capitalisation 5.4 m USD, dividend yield 232.37%, beta 1.69, 52-week range 0.24–9.17 USD. Latest reported quarter (Q2 2027): revenue of 241.8 m USD (−18.9% YoY), net income of -31.0 m USD, diluted EPS -1.39 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
5.4 m USD
shares as of 08 Sept 2026
P/E (TTM)
unavailable
Diluted EPS TTM -5.99 · TTM to 01 Aug 2026
E/P (TTM)
-2,485.28%
TTM to 01 Aug 2026
Dividend yield
232.37%
DPS 12m 0.56
Beta (2y)
1.69
Volatility (1y) 133%
52-week range
0.249.17

Price history

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Technical reading

RSI (14)
9.5
oversold (≤ 30)
Bollinger (20, 2)
0.10 – 1.79
in the lower half of the band · %B 0.08 · band width 178.6%
SMA 50 / 200
1.75 / 2.99
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.42 / -0.37
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−87.4%−1.1%−86.3 pp—
3 months−90.8%−0.5%−90.3 pp—
6 months−92.8%+4.4%−97.2 pp—
Year to date−93.9%+12.3%−106.3 pp—
1 year−96.5%+13.5%−110.0 pp−4.7%
3 years−99.1%+76.4%−175.5 pp+44.3%
5 years−99.8%+63.7%−163.4 pp—
Max drawdown (1y)
−97.4%
11 Nov 2025 → 04 Nov 2026
Max drawdown (5y)
−99.8%
18 Nov 2021 → 04 Nov 2026
Compound annual growth (5y)
−70.0%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2027 · 01 Aug 2026

Revenue
241.8 m USD
−18.9% YoY
Net income
-31.0 m USD
unavailable YoY
Diluted EPS
-1.39
unavailable YoY
net / operating
-12.8% / -5.4%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27Q2 '27
Revenue390.2 m408.6 m242.1 m298.0 m339.5 m329.2 m215.2 m241.8 m
Cost of revenue251.8 m292.0 m171.3 m196.7 m227.2 m252.0 m161.9 m158.5 m
Gross profit138.3 m116.6 m70.8 m101.3 m112.3 m77.2 m53.4 m83.3 m
SG&A99.8 m100.6 m86.7 m89.6 m101.3 m106.1 m88.9 m90.1 m
Operating income29.3 m6.8 m-24.1 m4.1 m3.7 m-40.9 m-42.2 m-13.0 m
Depreciation & amortisation9.3 m9.2 m8.2 m7.6 m7.3 m9.9 m6.7 m6.3 m
Pre-tax income19.2 m-1.9 m-32.7 m-3.9 m-4.5 m-49.2 m-51.9 m-31.3 m
Income tax-900.0 k6.1 m1.3 m1.5 m-132.0 k-4.7 m1.3 m-338.0 k
Net income20.1 m-8.0 m-34.0 m-5.4 m-4.3 m-44.6 m-53.2 m-31.0 m
Diluted EPS1.57-0.62 ≈-1.57-0.24-0.19-2.01 ≈-2.40-1.39
Operating cash flow-44.2 m ≈121.3 m-43.0 m-30.5 m ≈6.2 m ≈75.3 m-53.8 m21.5 m ≈
Capex3.4 m ≈-94.0 k3.4 m1.4 m ≈9.6 m ≈2.9 m8.0 m5.7 m ≈
Share repurchases0 ≈107.0 k84.0 k338.0 k ≈0 ≈029.0 k4.0 k ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue1.9 bn1.9 bn1.5 bn1.9 bn1.7 bn1.6 bn1.4 bn1.2 bn
Revenue YoY+3.6%−3.5%−18.6%+25.8%−10.8%−6.2%−13.5%−12.8%
Net income101.0 m73.3 m-140.4 m187.2 m-1.1 m-154.5 m-57.8 m-88.3 m
Net income YoY+19.2%−27.4%−291.5%unavailable−100.6%unavailableunavailableunavailable
Diluted EPSunavailable4.68-9.5912.59-0.09-12.34-4.53-4.01
Diluted EPS YoYunavailableunavailable−304.9%unavailable−100.7%unavailableunavailableunavailable
net %5.2%3.9%-9.2%9.8%-0.1%-9.6%-4.2%-7.3%
Free cash flow68.8 m120.4 m-66.3 m104.0 m-53.8 m65.2 m-133.4 m-9.3 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 31 Jan 2026

Cash
5.5 m USD
Financial debt
0 USD
Net debt
-5.5 m USD
Equity
-54.2 m USD
Total assets
670.3 m USD
Debt / equity
unavailable
Current ratio
1.03x
ROE
unavailable
ROA
-12.5%
FCF margin
-0.8%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
1.6 bn
2025
1.4 bn
2026
1.2 bn

SEC (XBRL)· 10 Apr 2026verified

Cost of revenue
2024
1.2 bn
2025
926.8 m
2026
847.3 m

SEC (XBRL)· 10 Apr 2026verified

Gross profit
2024
445.3 m
2025
459.5 m
2026
361.6 m

SEC (XBRL)· 10 Apr 2026verified

SG&A
2024
447.3 m
2025
405.6 m
2026
383.7 m

SEC (XBRL)· 10 Apr 2026verified

Operating income
2024
-83.8 m
2025
-13.7 m
2026
-57.2 m

SEC (XBRL)· 10 Apr 2026verified

Depreciation & amortisation
2024
47.2 m
2025
39.6 m
2026
33.1 m

SEC (XBRL)· 10 Apr 2026verified

EBITDA
2024
-36.6 m ≈
2025
25.9 m ≈
2026
-24.1 m ≈

SEC (XBRL)· 10 Apr 2026derived

Interest expense
2024
30.1 m
2025
—
2026
—

SEC (XBRL)· 06 May 2024verified

Pre-tax income
2024
-113.8 m
2025
-49.4 m
2026
-90.3 m

SEC (XBRL)· 10 Apr 2026verified

Income tax
2024
40.7 m
2025
8.4 m
2026
-2.0 m

SEC (XBRL)· 10 Apr 2026verified

Net income
2024
-154.5 m
2025
-57.8 m
2026
-88.3 m

SEC (XBRL)· 10 Apr 2026verified

Diluted EPS
2024
-12.34
2025
-4.53
2026
-4.01

SEC (XBRL)· 10 Apr 2026verified

Weighted average diluted shares
2024
12.5 m
2025
12.8 m
2026
22.0 m

SEC (XBRL)· 10 Apr 2026verified

Balance sheet · USD

Cash
2024
13.6 m
2025
5.3 m
2026
5.5 m

SEC (XBRL)· 10 Apr 2026verified

Inventories
2024
362.1 m
2025
399.6 m
2026
325.1 m

SEC (XBRL)· 10 Apr 2026verified

Current assets
2024
452.1 m
2025
468.0 m
2026
398.0 m

SEC (XBRL)· 10 Apr 2026verified

Property, plant & equipment, net
2024
124.8 m
2025
97.5 m
2026
81.7 m

SEC (XBRL)· 10 Apr 2026verified

Intangibles (excl. goodwill)
2024
41.1 m
2025
13.0 m
2026
13.0 m

SEC (XBRL)· 10 Apr 2026verified

Total assets
2024
800.3 m
2025
747.6 m
2026
670.3 m

SEC (XBRL)· 10 Apr 2026verified

Accounts payable
2024
225.5 m
2025
126.7 m
2026
108.5 m

SEC (XBRL)· 10 Apr 2026verified

Short-term debt
2024
226.7 m
2025
245.7 m
2026
0

SEC (XBRL)· 12 Jun 2026verified

Long-term debt
2024
49.8 m
2025
166.0 m
2026
—

SEC (XBRL)· 11 Jun 2025verified

Current liabilities
2024
616.4 m
2025
518.1 m
2026
387.9 m

SEC (XBRL)· 10 Apr 2026verified

Total liabilities
2024
809.3 m
2025
807.0 m
2026
724.5 m

SEC (XBRL)· 10 Apr 2026verified

Equity
2024
-9.0 m †
2025
-59.4 m †
2026
-54.2 m †

SEC (XBRL)· 10 Apr 2026verified

Cash flow · USD

Operating cash flow
2024
92.8 m
2025
-117.6 m
2026
8.1 m

SEC (XBRL)· 10 Apr 2026verified

Capex
2024
27.6 m
2025
15.8 m
2026
17.4 m

SEC (XBRL)· 10 Apr 2026verified

Free cash flow
2024
65.2 m ≈
2025
-133.4 m ≈
2026
-9.3 m ≈

SEC (XBRL)· 10 Apr 2026derived

Investing cash flow
2024
-27.8 m
2025
-15.8 m
2026
-17.4 m

SEC (XBRL)· 10 Apr 2026verified

Financing cash flow
2024
-68.3 m
2025
128.4 m
2026
7.0 m

SEC (XBRL)· 10 Apr 2026verified

Dividends paid
2024
0
2025
1.7 m
2026
—

SEC (XBRL)· 17 Apr 2025verified

Share repurchases
2024
7.1 m
2025
673.0 k
2026
422.0 k

SEC (XBRL)· 10 Apr 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-12.8%
computed by olivLawFY 2026
Revenue CAGR 3Y
-10.9%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
-4.5%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
29.0%
computed by olivLawTTM to 01 Aug 2026
EBITDA margin
-5.5%
computed by olivLawTTM to 01 Aug 2026
EBIT margin
-8.2%
computed by olivLawTTM to 01 Aug 2026
Net margin
-11.8%
computed by olivLawTTM to 01 Aug 2026
FCF margin
2.0%
computed by olivLawTTM to 01 Aug 2026

Returns

ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
ROA
-17.2%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
ROIC
unavailable
equity is negative: buybacks shrink the invested capital and ROIC would come out large without meaning anything
ROCE
-35.2%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
10.7 m USD
computed by olivLawbalance sheet at 01 Aug 2026
Net debt / EBITDA
unavailable
insufficient data
Debt / equity
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Interest coverage
unavailable
the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used

Liquidity

Current ratio
0.9x
computed by olivLawbalance sheet at 01 Aug 2026
Quick ratio
0.2x
computed by olivLawbalance sheet at 01 Aug 2026
Cash ratio
0.0x
computed by olivLawbalance sheet at 01 Aug 2026

Cash

Operating cash flow
49.3 m USD
computed by olivLawTTM to 01 Aug 2026
Capital expenditure
26.2 m USD
computed by olivLawTTM to 01 Aug 2026
Free cash flow
23.0 m USD
computed by olivLawTTM to 01 Aug 2026
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
179 days
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Days payables outstanding
64 days
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
5.4 m USD
computed by olivLawbalance sheet at 01 Aug 2026
Enterprise value
16.0 m USD
computed by olivLawbalance sheet at 01 Aug 2026
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-2,485.3%
computed by olivLawTTM to 01 Aug 2026
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
P/S
0.0x
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
EV/EBITDA
unavailable
insufficient data
EV/EBIT
unavailable
insufficient data
EV/Sales
0.0x
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
P/FCF
0.2x
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
FCF yield
429.5%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Dividend yield
232.4%
computed by olivLawTTM to 01 Aug 2026
Shareholder yield (distributions)
0.6%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • indicators available: 5 of at least 6
  • score weight coverage: 33.3% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

0.24 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 5.4 m USD

Key indicators

Market capitalisation
5.4 m USD
computed by olivLawbalance sheet at 01 Aug 2026
P/E (TTM)
unavailable
insufficient data
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
EV/EBITDA
unavailable
insufficient data
ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Net margin
-11.8%
computed by olivLawTTM to 01 Aug 2026
Revenue growth (YoY)
-12.8%
computed by olivLawFY 2026
Dividend yield
232.4%
computed by olivLawTTM to 01 Aug 2026

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 01 Aug 2026
Latest balance sheet date: 01 Aug 2026
Share count (cover of the latest filing), as of: 08 Sept 2026
Source: SEC (XBRL)published 14 Sept 2026
verified 2831derived 183

Score by group

33% · Insufficient data

Estimated value range

Low
29.44
USD per share
Mid
33.76
USD per share
High
39.59
USD per share
Price: 0.24 USD
The price is below the range
Potential to the central value: 13,910.3% (value / price − 1)
Margin of safety: 99.3% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 29.44 – 39.59 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
  • Peers: EV/EBITDAunavailable · the base of the ratio is not positive
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)29.44 – 39.59 (Mid 33.76)
Multiple comparisons use the SIC vertical: Retail-Family Clothing Stores (SIC 5651)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality-11.8%0 (vs peers)19%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth-10.9%0 (on a fixed band)25%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet0.9x7 (on a fixed band)13%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation429.5%100 (on a fixed band)25%
Shareholder yield (distributions) · Returns0.6%9 (on a fixed band)19%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial7/100 · 1/3 factors with a value
  • Growth· partial0/100 · 1/2 factors with a value
  • Quality· partial0/100 · 1/3 factors with a value
  • Returns· partial9/100 · 1/2 factors with a value
  • Valuation· partial100/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

THE CHILDREN’S PLACE, INC. (PLCE). Latest full fiscal year: 2026; data up to 2026-08-01.

Figures computed from the financial statements: revenue 1.2 bn USD in 2026; YoY growth -12.8%; net margin -11.8%.

The estimated value range is 29.44–39.59 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 33.76 USD, the price of 0.24 USD leaves a potential of 13,910.3% (value / price − 1) and a margin of safety of 99.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF yield: 429.5%
  • The price is below the estimated value range

What contradicts it

  • Net margin: -11.8%
  • Revenue CAGR 3Y: -10.9%
  • Current ratio: 0.9x
  • Shareholder yield (distributions): 0.6%

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Retail-Family Clothing Stores (SIC 5651) · same industry (4-digit SIC) · compared with 9 companies

Multiples and returns vs the median

P/E
—
vertical median 12.7x
EV/EBITDA
—
vertical median 6.9x
P/S
0.0x
vertical median 1.2x
below median (−99.6%)
P/B
—
vertical median 2.8x
ROE
—
vertical median 40.5%
Net margin
-11.8%
vertical median 9.7%
below median (−221.5%)
EBIT margin
-8.2%
vertical median 11.1%
below median (−173.7%)
Revenue YoY
-12.8%
vertical median 6.4%
below median (−299.4%)
Net debt/EBITDA
—
vertical median -0.4x
Dividend yield
232.4%
vertical median 2.1%
above median (+11,197.7%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
TJXThe TJX Companies, Inc.159.2 bn26.862.2%9.7%+7.1%−5% / +64%
ROSTRoss Stores, Inc.78.5 bn29.742.6%10.8%+7.7%+39% / +88%
GAPGap, Inc8.3 bn7.133.8%8.1%+1.9%−12% / +18%
URBNUrban Outfitters, Inc.7.9 bn14.320.9%8.8%+11.1%+24% / +157%
ANFAbercrombie & Fitch Co.7.3 bn14.740.5%10.0%+6.4%+75% / +125%
AEOAmerican Eagle Outfitters, Inc.3.6 bn10.920.4%5.9%+4.1%+5% / +12%
BKEBuckle, Inc2.5 bn11.045.8%16.6%+6.6%−15% / +24%
LELands’ End, Inc.301.1 m0.997.9%30.5%+0.7%−35% / +44%
DXLGDestination Xl Group, Inc.27.1 m—-30.6%-8.8%−6.9%−50% / −87%
PLCEThe Children’s Place, Inc.5.4 m——-11.8%−12.8%−96% / −99%

1- and 3-year price returns: for PLCE from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    In brief

    The Children's Place is the largest pure-play children's specialty apparel retailer in North America, selling mainly at value prices under its own brands The Children's Place and Gymboree. In fiscal 2025 the company reported net sales of 1.209 billion USD, down 12.8% 1, in an environment where its target customers are cutting discretionary spending.

    SWOT

    Strengths

    • A clear position as a pure-play children's specialty retailer with a consolidated omni-channel network 1.
    • Control over design and sourcing that supports quality and accessible prices 1.
    • Two proprietary brands, with a premium segment developing through Gymboree 1.

    Weaknesses

    • A significant decline in net sales and comparable retail sales in fiscal 2025 1.
    • Falling gross margins, affected by tariffs and inventory adjustments 1.
    • Reliance on asset-based credit lines and on support from the controlling shareholder 1.

    Opportunities

    • Savings from the transformation program and corporate cost reduction 1.
    • Expansion of wholesale partnerships and licensing to grow sales 1.
    • Modernisation of the store fleet and a possible recovery in physical traffic 1.

    Threats

    • Lower- and middle-income customers may cut discretionary spending during economic slowdowns 1.
    • Tariffs and trade measures could raise sourcing costs 1.
    • Price competition and promotional pressure could reduce margins 1.

    Risks

    • Liquidity and access to financinghigh

      The company depends on cash flow, credit lines and a term loan with restrictive terms; a tightening of credit could limit operations 1.

    • Consumer demandhigh

      A continued fall in discretionary spending by target customers could persist if the macroeconomic environment worsens 1.

    • Tariffs and sourcing costsmedium

      Tariffs and rising costs for raw materials, transport and energy could compress margins 1.

    • Strategy executionmedium

      Delays or cost overruns in transformation projects could reduce the expected benefits 1.

    • Controlling shareholdermedium

      A controlling stockholder may influence capital allocation and strategic decisions 1.

    Investment thesis

    What would need to be true (bull case)

    • If the transformation program delivers the promised savings, profitability could gradually recover from a lower cost base.
    • Stronger back-to-school sales and a return of store traffic could support a stabilisation of revenue.
    • Wider wholesale partnerships and the Gymboree brand could open new revenue sources.

    What would break the thesis

    • If discretionary spending by customers keeps falling, revenue and margins could stay under pressure.
    • Dependence on credit and lending restrictions could limit the company's ability to invest.
    • Tariffs and promotional competition could offset the effect of restructuring savings.

    What to watch

    • Trend in comparable store and online salesQ1 2027
    • Delivery of transformation program savings2027
    • Status of the ABL facility and the SLR term loannext 10-K
    • Impact of tariffs and customs refunds on margins2027

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    The business

    The company designs, contracts manufacture of, and sells children's footwear, accessories and apparel through an omni-channel model that combines 498 North American stores 1 with two digital storefronts and wholesale channels. Products are sourced mostly from Asia and Africa, and the firm owns no manufacturing facilities 1. Gymboree was relaunched as a distinct premium-leaning brand.

    Near-term strategy rests on product, digital commerce, the omni-channel experience and cost reduction, including a transformation program targeting about 45 million USD of gross benefits 1. The company is controlled by Mithaq Capital SPC, which increased its stake through the fiscal 2025 rights offering 1.

    Sales are seasonal, concentrated in the back-to-school and holiday periods, so quarterly results are uneven 1.

    Segments

    The Children's Place U.S.

    The U.S. segment includes stores in the United States and Puerto Rico and wholesale sales to U.S. customers, including the relationship with Amazon 1.

    The Children's Place International

    The international segment covers Canadian stores and sales to international franchisees, a smaller part of the business that plays an important role in geographic expansion 1.

    Market context

    The North American children's apparel market is sensitive to parents' discretionary spending, which tends to fall in economic slowdowns, high inflation or rising unemployment 1. The company describes lower mall traffic and a highly promotional environment, so price pressure is a constant factor.

    Competition is intense and price pressure depends on the financial health of competitors and shifts in demand 1. The near-term outlook remains uncertain, especially if cost and tariff pressures persist.

    Trends

    • Inflation and cost pressureheadwind

      Inflation, transport and distribution costs have weighed on customers' discretionary spending, and the company expects this impact to continue into fiscal 2026 1.

    • Tariffsmixed

      US tariffs reduced margins, though the company planned mitigation through pricing, vendor partnerships and better inbound freight rates 1. Recent court rulings on IEEPA duties could lead to refunds for the company 1.

    • Digital and omni-channel shifttailwind

      E-commerce remains a strategic priority, with redesigned sites and ship-from-store capabilities that could support retention if online traffic recovers 1.

    • Operational transformationtailwind

      Corporate cost reduction and supply chain optimisation could improve profitability if the expected benefits materialise as planned 1.

    Competitive position

    The company competes in children's apparel with general merchandise retailers and specialty chains, both in stores and online. Its value and design positioning is an advantage, but lower-priced competitors can compress margins.

    Competition also plays out through promotional pricing and wholesale channels, which can shift the company's sales dynamics.

    • General merchandise retailers with children's lines

      Large retailers with dedicated children's departments that compete on price and volume.

    • Specialty children's fashion chains

      Competitors offering similar assortments in stores and online.

    • Online marketplace platforms

      Online channels that may attract customers who buy through large platforms.

    • Retailer private-label brands

      Retailers' own brands that compete directly on price.

    News & filings

    In the press

    The latest news item in our archive is from 17 Sept 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

    SEC filings

    • Current report04 Nov 2026
      Departure or appointment of officers
    • Current report23 Oct 2026
      Departure or appointment of officers · Financial statements and exhibits
    • Current report08 Oct 2026
      Departure or appointment of officers · Financial statements and exhibits
    • Current report30 Sept 2026
      Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
    • Quarterly report14 Sept 2026
    • Current report14 Aug 2026
      Departure or appointment of officers · Financial statements and exhibits
    • Departure or appointment of officers · Financial statements and exhibits
    • Current report17 Jul 2026
      Departure or appointment of officers · Financial statements and exhibits
    • Current report10 Jul 2026
      Departure or appointment of officers · Financial statements and exhibits
    • Current report07 Jul 2026
      Material agreement · Creation of a direct financial obligation · Departure or appointment of officers · Financial statements and exhibits

    Sources

    1. [1] Form 10-K, fiscal year ended 2026-01-31 · SEC / The Children's Place, Inc. · 10 Apr 2026
    2. [2] Form 10-Q, quarter ended 2026-08-01 · SEC / The Children's Place, Inc. · 14 Sept 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / The Children's Place, Inc. · 05 Sept 2025

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.