Shares of The Children's Place have experienced a significant drop following lower than anticipated adjusted earnings in the third quarter. In premarket trading, the stock was down by 14%, with a price of $24.60. This decrease comes after a 22% decline in shares throughout the year.
Earnings and Forecasts
For the third quarter, the children's apparel retailer reported a profit of $38.5 million, equivalent to $3.05 per share. This is a decline from $42.9 million, or $3.26 per share, in the same period last year. When adjusting for one-time items, the adjusted earnings were $3.22 per share, falling short of analysts' expectations of $3.49 per share.
Decrease in Sales
Sales for the company dropped to $480.2 million from $509.1 million compared to the previous year's quarter. Despite this decrease, it still surpassed analyst predictions of $465.7 million. The decline in sales can be attributed to a slowdown in consumer demand.
Outlook for The Children's Place
Based in Secaucus, N.J., The Children's Place has revised its sales outlook for the year to approximately $1.61 billion, up from the initial forecast of $1.58 billion. However, the company now anticipates an adjusted loss ranging from 29 cents to 59 cents per share for the year.
In summary, The Children's Place has faced challenges in the third quarter, with lower adjusted earnings and a decline in sales. The company is adjusting its sales outlook for the year while anticipating an adjusted loss.
