- Children's Place Inc (NASDAQ:PLCE) reported fourth-quarter FY21 sales growth of 7.4% year-on-year, to $507.80 million, missing the consensus of $537.73 million. Comparable retail sales increased 13.3% for the quarter.
- The gross profit increased 38.6% Y/Y to $193.8 million, with the margin expanding 860 basis points to 38.2%. Adjusted gross margin expanded 776 basis points to 38.2%. Operating income for the quarter jumped 303.5% to $58.1 million. Adjusted operating margin extended 656 basis points to 12.1%.
- Adjusted EPS of $3.02 beat the analyst consensus of $2.85.
- The company held $54.8 million in cash and equivalents as of January 29, 2022. Inventories rose 10.5% Y/Y to $428.8 million as of January 29, 2022.
- "We are facing significant headwinds in 2022 including decade-high cotton pricing, record inflation, lapping unprecedented stimulus payments from last year, and continued global freight disruptions," said CEO Jane Elfers.
- The company ended the quarter with 672 stores and square footage of 3.2 million, a decrease of 10% compared to last year.
- Children's Place is not providing EPS guidance, citing a lack of near-term visibility to top-line demand based on the unprecedented stimulus released into the economy one year ago.
- Meanwhile, it expects to deliver double-digit EPS and double-digit operating margin for FY22.
- Price Action: PLCE shares are trading lower by 0.66% at $57.62 on the last check Wednesday.
