Children’s Place Inc.’s stock
PLCE,
slid 16% in premarket trade Wednesday, after the kids apparel retailer posted a wider-than-expected first-quarter loss and sales that lagged estimates. “Our first quarter results were negatively impacted by the ongoing macro-tension which resulted in outsized pressure on our core customer by limiting their purchasing power,” Chief Executive Jane Elfers said in a statement. The company lowered its profit and sales guidance for the rest of the year. Secaucus, N.J.-based Children’s Place had a net loss of $28.8 million, or $2.33 a share, for the quarter to April 29, after income of $19.8 million, or $1.43 a share, in the year-earlier period. Its adjusted loss came to $2.00, wider than the $1.83 FactSet consensus. Sales fell to $321.6 million from $362.4 million, also below the $337.0 million FactSet consensus. Same-store sales fell 8.2%, while FactSet was expecting a 10% decline. The company is now expecting a second-quarter adjusted loss per share of $2.15 to $2.20 on sales of $340 million to $345 million. The FactSet consensus is for a loss of $1.61 and sales of $356 million. For the full year, it expects adjusted EPS of $1.00 to $1.50 on sales of $1.575 billion to $1.590 billion. The FactSet consensus is for EPS of $2.15 and sales of $1.637 billion. The stock is down 35% in the year to date, while the S&P 500
SPX,
has gained 8%.
