PLCE - The Children's Place returned to profitability and positive cash flow in Q3

The Children's Place (PLCE) reports sales declined 18.9% in Q3, significantly impacted by the move to remote and hybrid learning models.Digital sales  penetration increased 44%, as digital adoption accelerated by the COVID-19 pandemic and increased the number of new digital customers Y/Y by ~100%Adjusted gross margin rate down 210 bps to 35.7% vs. consensus of 33.7%, primarily a result of increased penetration of e-commerce business and its higher fulfillment costs, along with the deleverage of fixed expenses resulting from the decline in net salesThe flexibility provided by lease actions allows the company to target 200 store closures in FY2020, including 118 stores closed in the first nine months of 2020, and 100 additional closures in FY2021.As of October 31, 2020, the Company had 99% of its stores open to the public in the U.S., Canada, and Puerto Rico.The company generated ~$32.5M in operating cash flowAs a result of the continued uncertainty created by the COVID-19 pandemic, the company is not

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The Children's Place returned to profitability and positive cash flow in Q3