Children's Place shares lose more than a quarter of value as retailer misses earnings mark on consumer 'pressure'
By Steve Gelsi
Retailer's fourth-quarter outlook also falls short of analyst projections
Children's Place Inc.'s stock lost more than a quarter of its value on Thursday after the retailer's latest quarter fell short of analyst projections.
The company also warned it will miss Wall Street's earnings estimate for its coming quarter.
Children's Place shares (PLCE) dropped 27% at midday.
While the clothing-chain operator said its back-to-school business was strong, its bottom line was affected by increased expenses as well as by "significant pressure" on its core customers.
The company reported third-quarter net income of $38.5 million, or $3.05 a share, down from $42.9 million, or $3.26 a share, in the year-ago quarter.
Adjusted profit of $3.22 a share fell short of the FactSet consensus estimate of $3.49 a share.
Third-quarter sales fell by 5.7% to $480.2 million, above the analyst estimate of $465.7 million.
Children's Place said contributing factors were higher distribution and labor costs and pressured consumers.
Looking ahead, Children's Place said it expects fourth-quarter sales of $460 million to $465 million, above the analyst estimate of $436.5 million, and adjusted profit of 25 cents to 45 cents a share, well below the analyst estimate of $1.39 a share.
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
11-16-23 1321ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks