The Children’s Place (PLCE) Q4 2026 earnings summary

Executive summary

• Net sales declined 19.4% year-over-year in Q4 2025, primarily due to lower e-commerce traffic and a planned reduction in Amazon wholesale shipments.

• Full-year net sales fell 12.8% to $1.209 billion, with both e-commerce and brick-and-mortar channels impacted by macroeconomic headwinds and tariffs.

• Management is executing a transformation plan focused on cost reduction, margin expansion, and free cash flow generation, including a migration to Salesforce Customer Cloud to address e-commerce challenges.

Financial highlights

• Q4 2025 net loss was $(44.6) million, or $(2.01) per diluted share, compared to $(8.0) million, or $(0.62) per share, in Q4 2024.

• Adjusted Q4 net loss was $(41.2) million, or $(1.86) per share, versus $(9.6) million, or $(0.75) per share, year-over-year.

• Full-year net loss was $(88.3) million, or $(4.01) per share, compared to $(57.8) million, or $(4.53) per share, in the prior year.

• Adjusted full-year net loss was $(81.4) million, or $(3.70) per share, versus adjusted net income of $5.5 million, or $0.43 per share, last year.

• Operating cash flow improved by $126 million year-over-year, reaching $8.1 million for fiscal 2025.

Outlook and guidance

• Management expects the transformation plan and technology investments to drive improved customer experience and operational leverage, with a focus on the critical back-to-school season.