- Children's Place released its Q3 results last month and reported sales down 19% year-over-year, on the back of a significant amount of store closures.
- Fortunately, the company's digital strategy continues to gain traction, with digital sales coming in at 44% of total sales in Q3.
- However, with a share price of $48.00 following vaccine-related enthusiasm for retailers, the stock is now trading at over 18x FY2022 annual EPS estimates.
- Therefore, I believe investors would be wise not to chase the stock above $49.00 per share.
For further details see:
Children's Place: Valuation No Longer Attractive