Children’s Place Earnings: PLCE Stock Plunges 23% on Guidance Cut

Children’s Place (NASDAQ:PLCE) earnings for the apparel retailer’s third quarter of 2019 have PLCE stock taking a dive on Wednesday. This comes despite its adjusted per-share earnings of $3.03. This is above Wall Street’s estimate of $3.02 for the quarter. However, its revenue of $524.80 million is below analysts’ estimates of $533.99 million.

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Now for a closer look at the most recent Children’s Place earnings report.

  • Adjusted earnings per share are down 1.30% from the same time last year.
  • Revenue for the quarter comes in marginally better than the $522.50 million in Q3 2018.
  • Operating income of $57.95 million is 10.31% lower YoY than $64.61 million.
  • The Children’s Place earnings report also includes a net income of $43.05 million.
  • That’s a 13.74% decrease from the company’s net income of $49.91 million in the same period of the year prior.

Jane Elfers, President and CEO of Children’s Place, says this about the PLCE stock earnings.

“Quarter-to-date, our digital penetration continues to increase and our AURs are strengthening as we focus on disciplined inventory management in a promotional environment. However, due to meaningfully weaker than planned mall traffic quarter-to-date, we are lowering our outlook for Q4.”

The real bad news in the Children’s Place earnings report comes from its 2019 outlook. The company is updating this to include adjusted EPS from $5.00 to $5.20. It also has revenue expectations between $1.862 billion and $1.867 billion. That doesn’t look good next to Wall Street’s estimates of $5.62 per share and $1.92 billion.

PLCE stock was down 23.49% as of Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/12/childrens-place-earnings-hammer-plce-stock/.

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