The Children’s Place
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The Children’s Place (PLCE) investor relations material

The Children’s Place Q2 2027 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2027 earnings summary14 Sep, 2026

Executive summary

  • Net sales for Q2 2026 decreased 18.9% year-over-year to $241.8 million, with comparable retail sales down 16.7% due to lower traffic, clearance-heavy mix, and planned wholesale reductions.

  • Gross profit fell to $83.3 million, but gross margin improved to 34.4% due to $39 million in tariff refunds; excluding refunds, gross margin declined significantly.

  • Operating loss was $13.0 million versus income of $4.1 million last year, driven by lower sales and higher SG&A as a percentage of sales; adjusted operating loss was $10.9 million.

  • Net loss widened to $31.0 million ($1.39 per share) from $5.4 million ($0.24 per share) in Q2 2025; adjusted net loss was $18.2 million ($0.82 per share).

  • Opened 19 new stores, the highest quarterly addition since 2013, and focused on boosting fleet profitability.

Financial highlights

  • Year-to-date net sales declined 15.4% to $457.0 million; comparable retail sales down 12.9%.

  • Year-to-date gross margin decreased 200 bps to 29.9%; adjusted gross margin was 30.9%.

  • Year-to-date operating loss was $55.2 million, compared to $20.0 million last year.

  • Year-to-date net loss was $84.1 million ($3.79 per share), versus $39.4 million ($1.80 per share) in 2025.

  • Cash used in operations improved to $32.3 million YTD from $73.4 million last year, aided by better working capital management.

Outlook and guidance

  • Macroeconomic pressures, including inflation, higher gas prices, and tariffs, are expected to continue impacting results for the remainder of fiscal 2026.

  • Management expects to meet working capital and capital expenditure needs for at least the next twelve months through cash, operations, and available credit.

  • Negative sales and margin trends began to reverse at the start of Q3 as wholesale partners rebuild inventory ahead of the holiday season.

  • AI-enabled creative optimization and brand media initiatives are expected to further improve conversion and engagement for the holiday season.

  • Continued focus on cost reduction, liquidity improvement, and transformation plan execution.

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Q3 202717 Dec, 2026
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Q3 202717 Dec, 2026

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Frequently asked questions

The Children's Place is a specialty retailer of apparel and accessories for children. The company operates in three segments: Stores, Direct, and Franchise. The Stores segment includes the operation of clothing stores and e-commerce Websites in the United States, Canada, Puerto Rico, U.S. Virgin Islands, United Arab Emirates, Kenya, Indonesia and New Zealand. The Direct segment offers products through proprietary websites along with other U.S.-based wholesale channels that deliver products to customers' homes or businesses, such as department stores and Internet-based catalogs; licensees that manufacture products for sale under our brands; and global duty-free retailers serving international markets through duty-free terminals.