Kid’s apparel and accessories retailer The Children’s Place (NASDAQ: PLCE) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
Children's Place beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $480.2 million, down 5.7% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.
Is Children's Place a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Children's Place’s revenue to grow 1.6% year on year to $463.6 million, a reversal from the 10.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.66 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Children's Place has missed Wall Street’s revenue estimates four times over the last two years.
With Children's Place being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for apparel and footwear retail stocks. However, the segment has faced declining investor sentiment as Children's Place’s peer group is down 3.8% on average over the last month. Children's Place’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $8 (compared to the current share price of $7.14).
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