10-Q · June 12, 2026
The Children's Place, Inc. reported a disappointing Q1 2026, with revenue declining 11.1% year-over-year to $215.2 million and a significant net loss of $53.2 million, resulting in an EPS of -$2.40. Management cited…
Earnings analysis · 10-Q
PLCE earnings analysis
Filed September 14, 2026 · Our reading of the company's report
The latest report
Second-quarter revenue increased to $298 million from $242 million in the prior quarter, while gross margin rose to 34.0% and operating margin improved to 1.4% from negative 10.0%. Diluted EPS improved to negative $0.24…
Read full summary
Second-quarter revenue increased to $298 million from $242 million in the prior quarter, while gross margin rose to 34.0% and operating margin improved to 1.4% from negative 10.0%. Diluted EPS improved to negative $0.24 from negative $1.57, and free cash flow improved to negative $32 million, although cash generation remained negative. The main offsets are leverage, including $160.1 million of ABL borrowings and $15.0 million of Mithaq borrowings, high-cost debt, and meaningful sourcing and foreign-exchange exposure.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.24
What stood out
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Revenue improved sequentially
Revenue was $298 million, up $56 million, or approximately 23%, from $242 million in the prior quarter. Year-over-year comparison was not available in the supplied filing data.
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Gross margin expanded
Gross margin increased to 34.0% from 29.2% in the prior quarter, a 4.8 percentage-point improvement.
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Returned to operating profitability
Operating margin improved to 1.4% from negative 10.0%, an 11.4 percentage-point sequential improvement.
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EPS loss narrowed
Diluted EPS improved to negative $0.24 from negative $1.57 in the prior quarter, a $1.33 per-share improvement.
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Cash burn moderated
Free cash flow improved to negative $32 million from negative $46 million in the prior quarter, but remained negative.
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Controls remained effective
Disclosure controls were assessed as effective at the reasonable-assurance level as of August 1, 2026, and management reported no changes that materially affected internal control over financial reporting.
What to watch
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Substantial ABL borrowings
The company had $160.1 million of borrowings under its ABL Credit Facility as of August 1, 2026, increasing exposure to interest-rate movements and liquidity requirements.
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High-cost related-party debt
As of August 1, 2026, the company had $15.0 million outstanding under its Mithaq Credit Facility; the Third Mithaq Term Loan bears interest at SOFR plus 9.000%, with payments subject to deferral upon written notice.
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Foreign-exchange exposure
A 10% change in foreign-exchange rates would have changed Second Quarter 2026 net sales by approximately $3.8 million and total costs and expenses by approximately $6.0 million.
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Global sourcing concentration
The company imports a vast majority of its merchandise from countries including Bangladesh, Vietnam, Ethiopia, Cambodia, China, Indonesia, and Kenya, exposing operations to trade, political, currency, banking, and labor disruptions.
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Foreign cash concentration
Foreign subsidiaries held $3.2 million of cash and cash equivalents as of August 1, 2026, including $1.2 million in India and $0.9 million in China, creating exposure to repatriation and local-market risks.
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No formal risk-factor changes
The filing states there were no material changes to the risk factors disclosed in the January 31, 2026 Form 10-K; therefore, no new formal risk-factor update was identified.
Management's outlook
No quantitative revenue or EPS outlook was provided in the supplied 10-Q text; outlook was deferred to the earnings release or conference call, if any.
Earlier filings 2
10-K · April 10, 2026
The Children’s Place positions itself as a pure‑play, value‑focused children's apparel retailer emphasizing superior product, digital expansion (two digital storefronts and mobile apps) and an omni‑channel experience…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.