PLCE - Why The Children's Place Stock Is Plummeting Today
2023-05-24 12:53:11 ET
Shares of The Children's Place (NASDAQ: PLCE) are falling today after the company's first-quarter results missed expectations. The retailer's stock was down 20.5% as of 11:45 a.m. ET on Wednesday, according to data from S&P Global Market Intelligence .
The Children's Place recorded a loss of $2 per share on revenue of $321.6 million in the first quarter, falling short of the average Wall Street analyst's call for a per-share loss of $1.78 on sales of $338.46 million. Making matters worse, the company also issued substantial downward revisions for its full-year sales and earnings targets.
Driven by a roughly 8% decline for same-store sales and a reduced store count, The Children's Place saw revenue decline 11.2% year over year in the first quarter. Gross profit margins also sank significantly, falling to 30% from 39.2% in the prior-year period.
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Why The Children's Place Stock Is Plummeting Today