The Children’s Place is exploring “strategic alternatives” in the event securing new financing proves challenging. Credit: Getty Images

The Children’s Place announced it is lowering its revenue guidance to $454m-$456m and expects a decline in operating profits.

The retailer explained it is now working with its advisors, including Centerview Partners, along with lenders and potential lenders to secure new financing vital for sustaining ongoing operations.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Additionally, it is exploring “strategic alternatives” in the event securing new finance proves challenging.

The company highlighted it has been working to improve its liquidity position and strengthen its balance sheet to best position the company for the future.

Preliminary results for Q4 2023

  • Net sales are expected to be approximately $454m to $456m, versus the previous guidance of $460m to $465m.
  • Adjusted operating loss is expected to be in the range of 8-9% of net sales, as opposed to the prior guidance of adjusted operating income of approximately 2-3%. This will exclude certain non-recurring costs, the gain from the settlement of a lawsuit, and non-cash asset impairments
  • Total liquidity as of 3 February 2024, is expected to be approximately $45m.

The Children’s Place pointed out that the adjusted operating loss reflects several factors: lower-than-expected merchandise margins due to aggressive promotions aimed at boosting sales, higher-than-anticipated split shipments to fulfil e-commerce demand, and increased inventory valuation adjustments.

In November 2023, The Children’s Place reported a 5.7% or $28.9m drop in revenues for Q3 2023 on the back of lower consumer spending due to macro-inflationary pressures and permanent stores closures.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

At that time, Jane Elfers, president and chief executive officer at The Children’s Place Inc, said the company’s bottom-line results were also negatively impacted in the third quarter by higher than-planned distribution costs driven by a combination of largely unplanned but addressable factors.