SECAUCUS, N.J., May 06, 2024 (GLOBE NEWSWIRE) -- The Children’s Place, Inc. (Nasdaq: PLCE), an omni-channel children’s specialty portfolio of brands with an industry-leading digital-first model, today announced financial results for the fourth quarter and fiscal year ended February 3, 2024.
Fourth Quarter 2023 Results
Net sales decreased $1.1 million, or 0.2%, to $455.0 million in the three months ended February 3, 2024, from $456.1 million in the three months ended January 28, 2023. The decrease in net sales compared to the fourth quarter 2022 was primarily due to reductions in retail sales due to lower store count and traffic declines to stores partially offset by continued strength in e-commerce. Comparable retail sales increased 4.8% for the quarter.
Gross profit and adjusted gross profit increased by $19.2 million to $98.9 million in the three months ended February 3, 2024, compared to $79.7 million in the three months ended January 28, 2023. Adjusted gross profit leveraged 420 basis points to 21.7% of net sales, compared to 17.5% of net sales last year. The increase was primarily due to reductions in product input costs, including cotton and supply chain costs, which negatively impacted margins in the prior year. These improvements were partially offset by margin pressure due to aggressive promotions, as the Company sought to maximize revenue during the quarter, coupled with margin pressure in its wholesale business which underperformed relative to plan and due to increases in freight cost resulting from split shipments.
Selling, general, and administrative expenses were $117.6 million in the three months ended February 3, 2024, compared to $130.5 million in the three months ended January 28, 2023. Adjusted selling, general & administrative expenses were $118.7 million in the three months ended February 3, 2024, compared to $128.5 million in the comparable period last year, and leveraged 210 basis points to 26.1% of net sales, primarily as a result of reductions in equity based compensation, significant reductions in store payroll and home office payroll, partially offset by planned increases in marketing and increases in professional fees.
Operating loss was ($61.8) million in the three months ended February 3, 2024, compared to ($64.8) million in the three months ended January 28, 2023. Operating loss was impacted by an impairment charge of $29.0 million on the Gymboree tradename, primarily due to an increase in the discount rate used to value the tradename and reductions to future Gymboree sales forecasts, and $2.5 million of impairment charges to stores during the quarter. These charges have been classified as non-GAAP adjustments leading to an adjusted operating loss of ($30.9) million in the three months ended February 3, 2024, compared to ($61.0) million in the comparable period last year, and leveraged 660 basis points to (6.8)% of net sales.
Net interest expense was $8.5 million in the three months ended February 3, 2024, compared to $5.2 million in the three months ended January 28, 2023. The increase in interest expense was largely driven by higher borrowings and higher average interest rates associated with our revolving credit facility and term loan due to continued market-based rate increases.
Provision for income taxes was $58.6 million in the three months ended February 3, 2024, compared to a benefit for income taxes of $19.4 million during the three months ended January 28, 2023. The change in the provision (benefit) for income taxes was primarily driven by the establishment of a valuation allowance against the Company’s net deferred tax assets in the three months ended February 3, 2024.
Net loss was ($128.8) million, or ($10.26) per diluted share, in the three months ended February 3, 2024, compared to ($50.5) million, or ($4.10) per diluted share, in the three months ended January 28, 2023. Adjusted net loss was ($92.7) million, or ($7.38) per diluted share, compared to ($47.7) million, or ($3.87) per diluted share in the comparable period last year.
Fiscal 2023 Results
Net sales decreased $106.0 million, or 6.2%, to $1.603 billion in the twelve months ended February 3, 2024, compared to $1.708 billion in the twelve months ended January 28, 2023. The decrease in net sales compared to fiscal 2022 was primarily due to reductions in retail sales due to lower store count and traffic declines to stores partially offset by continued strength in e-commerce and an increase in wholesale revenue. Comparable retail sales decreased 4.7% for the twelve months ended February 3, 2024.
Gross profit decreased $68.9 million to $445.3 million in the twelve months ended February 3, 2024, compared to $514.2 million in the twelve months ended January 28, 2023. Adjusted gross profit decreased $68.3 million to $445.3 million in the twelve months ended February 3, 2024, compared to $513.5 million in the comparable period last year, and deleveraged 230 basis points to 27.8% of net sales. The decrease was primarily the result of lower retail revenue attributed to reduced store count and traffic declines and the related lower merchandise margins on those sales. Additionally, gross profit margin was impacted by a significantly larger wholesale business which operates at a lower gross margin rate but is accretive to operating margin. Gross profit was also impacted by higher than planned distribution and fulfillment costs due to growth in our e-commerce business and the deleveraging of fixed expenses resulting from the decline in net sales.
Selling, general, and administrative expenses were $447.3 million in the twelve months ended February 3, 2024, compared to $461.0 million in the twelve months ended January 28, 2023. Adjusted selling, general & administrative expenses were $432.5 million in the twelve months ended February 3, 2024, compared to $455.8 million in the comparable period last year and deleveraged 30 basis points to 27.0% of net sales, compared to 26.7% of net sales last year, primarily as a result of the deleveraging of fixed expenses resulting from the decline in net sales and higher planned marketing spending, partially offset by permanent reductions in store payroll and home office payroll, and reductions in variable performance-based equity compensation.
Operating loss was ($83.8) million in the twelve months ended February 3, 2024, compared to ($1.5) million in the twelve months ended January 28, 2023. Operating loss was impacted by an impairment charge of $29.0 million on the Gymboree tradename, primarily due to an increase in the discount rate used to value the tradename and reductions to future Gymboree sales forecasts, and $5.6 million of impairment charges to stores during the year. These charges have been classified as non-GAAP adjustments leading to an adjusted operating loss of ($32.5) million in the twelve months ended February 3, 2024, compared to adjusted operating income of $7.1 million in the comparable period last year, and deleveraged 240 basis points to (2.0)% of net sales, compared to 0.4% of net sales last year.
Net interest expense was $30.0 million in the twelve months ended February 3, 2024, compared to $13.2 million in the twelve months ended January 28, 2023. The increase in interest expense was largely driven by higher borrowings and higher average interest rates associated with our revolving credit facility and term loan due to continued market-based rate increases.
Provision for income taxes was $40.7 million in the twelve months ended February 3, 2024, compared to a benefit for income taxes of $13.6 million during the twelve months ended January 28, 2023. The change in the provision (benefit) for income taxes was primarily driven by the establishment of a valuation allowance against the Company’s net deferred tax assets in the twelve months ended February 3, 2024 and by the release of a reserve for unrecognized tax benefits as a result of a settlement with a taxing authority in the twelve months ended January 28, 2023.
Net loss was ($154.5) million, or ($12.36) per diluted share, in the twelve months ended February 3, 2024, compared to ($1.1) million, or ($0.09) per diluted share, in the twelve months ended January 28, 2023. Adjusted net loss was ($103.3) million, or ($8.26) per diluted share, compared to ($1.1) million, or ($0.08) per diluted share, in the comparable period last year.
Store Update
The Company closed 68 stores in the three months ended February 3, 2024 and closed 90 stores in the twelve months ended February 3, 2024.
The Company ended the quarter with 523 stores and square footage of 2.6 million, a decrease of 12.8% compared to the prior year. Since the Company’s fleet optimization initiative was announced in 2013, it has permanently closed 676 stores.
Balance Sheet and Cash Flow
As of February 3, 2024, the Company had $13.6 million of cash and cash equivalents and $226.7 million outstanding on its revolving credit facility, compared to $16.7 million of cash and cash equivalents and $287.0 million outstanding on its revolving credit facility as of January 28, 2023. As of May 4, 2024, the Company had approximately $14 million of cash and cash equivalents and $226.1 million outstanding on its revolving credit facility. Additionally, the Company generated $135.4 million and $92.8 million in operating cash flows in the three months and twelve months ended February 3, 2024, respectively.
Inventories were $362.1 million as of February 3, 2024, compared to $447.8 million as of fiscal year end last year.
As previously announced, the Company recently secured a total of $78.6 million in unsecured subordinated loans from its new majority shareholder, Mithaq Capital SPC (“Mithaq”), providing the Company with new capital. In addition, on April 17, 2024, the Company closed on an additional $90 million unsecured subordinated term loan from Mithaq which was used to repay the Company’s $50 million term loan under the Company’s credit agreement with Wells Fargo, National Association and other lenders, and to provide additional working capital. Subsequently, on May 2, 2024, the Company entered into a commitment letter with Mithaq for a $40.0 million senior unsecured credit facility. The combined impact of these new financings provides the Company with additional liquidity to operate our business.
Non-GAAP Reconciliation
The Company’s results are reported in this press release on a GAAP and as adjusted, non-GAAP basis. Adjusted net income (loss), adjusted net income (loss) per diluted share, adjusted gross profit, adjusted selling, general, and administrative expenses and adjusted operating income (loss) are non-GAAP measures, and are not intended to replace GAAP financial information, and may be different from non-GAAP measures reported by other companies. The Company believes the income and expense items excluded as non-GAAP adjustments are not reflective of the performance of its core business, and that providing this supplemental disclosure to investors will facilitate comparisons of the past and present performance of its core business.
Please refer to the “Reconciliation of Non-GAAP Financial Information to GAAP” later in this press release, which sets forth the non-operating adjustments for the 14- and 53-week period ended February 3, 2024, and 13- and 52-week period ended January 28, 2023.
About The Children’s Place
The Children’s Place is an omni-channel children’s specialty portfolio of brands with an industry-leading digital-first model. Its global retail and wholesale network includes two digital storefronts, more than 500 stores in North America, wholesale marketplaces and distribution in 16 countries through six international franchise partners. The Children’s Place is proud to be a woman-led Company, including industry-leading gender diversity in senior management and throughout all levels of its workforce, and of its commitment to sustainable business practices that benefit its customers, associates, investors, suppliers and the communities it serves. The Children’s Place designs, contracts to manufacture, and sells fashionable, high-quality apparel, accessories and footwear predominantly at value prices, primarily under its proprietary brands: “The Children’s Place”, “Gymboree”, “Sugar & Jade”, and “PJ Place”. For more information , visit: www.childrensplace.com and www.gymboree.com, as well as the Company’s social media channels on Instagram, Facebook, X, formerly known as Twitter, YouTube and Pinterest.
Forward Looking Statements
This press release contains or may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements relating to the Company’s strategic initiatives and results of operations, including adjusted net income (loss) per diluted share. Forward-looking statements typically are identified by use of terms such as “may,” “will,” “should,” “plan,” “project,” “expect,” “anticipate,” “estimate” and similar words, although some forward-looking statements are expressed differently. These forward-looking statements are based upon the Company’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results and performance to differ materially. Some of these risks and uncertainties are described in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” section of its annual report on Form 10-K for the fiscal year ended February 3, 2024. Included among the risks and uncertainties that could cause actual results and performance to differ materially are the risk that the Company will be unable to achieve operating results at levels sufficient to fund and/or finance the Company’s current level of operations and repayment of indebtedness, the risk that the Company will be unsuccessful in gauging fashion trends and changing consumer preferences, the risks resulting from the highly competitive nature of the Company’s business and its dependence on consumer spending patterns, which may be affected by changes in economic conditions (including inflation), the risk that the Company’s strategic initiatives to increase sales and margin are delayed or do not result in anticipated improvements, the risk of delays, interruptions, disruptions and higher costs in the Company’s global supply chain, including resulting from disease outbreaks, foreign sources of supply in less developed countries, more politically unstable countries, or countries where vendors fail to comply with industry standards or ethical business practices, including the use of forced, indentured or child labor, the risk that the cost of raw materials or energy prices will increase beyond current expectations or that the Company is unable to offset cost increases through value engineering or price increases, various types of litigation, including class action litigations brought under securities, consumer protection, employment, and privacy and information security laws and regulations, the imposition of regulations affecting the importation of foreign-produced merchandise, including duties and tariffs, risks related to the existence of a controlling shareholder, and the uncertainty of weather patterns. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contact: Investor Relations (201) 558-2400 ext. 14500
| |
| THE CHILDREN’S PLACE, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (In thousands, except per share amounts) |
| (Unaudited) |
| |
| |
Fourth Quarter Ended |
|
Year Ended |
| |
February 3,
2024 |
|
January 28,
2023 |
|
February 3,
2024 |
|
January 28,
2023 |
| |
|
|
|
|
|
|
|
| Net sales |
$ |
455,034 |
|
|
$ |
456,126 |
|
|
$ |
1,602,508 |
|
|
$ |
1,708,482 |
|
| Cost of sales |
|
356,123 |
|
|
|
376,402 |
|
|
|
1,157,234 |
|
|
|
1,194,320 |
|
| Gross profit |
|
98,911 |
|
|
|
79,724 |
|
|
|
445,274 |
|
|
|
514,162 |
|
| Selling, general and administrative expenses |
|
117,587 |
|
|
|
130,494 |
|
|
|
447,343 |
|
|
|
460,972 |
|
| Depreciation and amortization |
|
11,652 |
|
|
|
12,145 |
|
|
|
47,186 |
|
|
|
51,464 |
|
| Asset impairment charges |
|
31,429 |
|
|
|
1,877 |
|
|
|
34,543 |
|
|
|
3,256 |
|
| Operating loss |
|
(61,757 |
) |
|
|
(64,792 |
) |
|
|
(83,798 |
) |
|
|
(1,530 |
) |
| Interest expense, net |
|
(8,518 |
) |
|
|
(5,152 |
) |
|
|
(30,000 |
) |
|
|
(13,232 |
) |
| Loss before provision (benefit) for income taxes |
|
(70,275 |
) |
|
|
(69,944 |
) |
|
|
(113,798 |
) |
|
|
(14,762 |
) |
| Provision (benefit) for income taxes |
|
58,561 |
|
|
|
(19,419 |
) |
|
|
40,743 |
|
|
|
(13,624 |
) |
| Net loss |
$ |
(128,836 |
) |
|
$ |
(50,525 |
) |
|
$ |
(154,541 |
) |
|
$ |
(1,138 |
) |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Loss per common share |
|
|
|
|
|
|
|
| Basic |
$ |
(10.26 |
) |
|
$ |
(4.10 |
) |
|
$ |
(12.36 |
) |
|
$ |
(0.09 |
) |
| Diluted |
$ |
(10.26 |
) |
|
$ |
(4.10 |
) |
|
$ |
(12.36 |
) |
|
$ |
(0.09 |
) |
| |
|
|
|
|
|
|
|
| Weighted average common shares outstanding |
|
|
|
|
|
|
|
| Basic |
|
12,556 |
|
|
|
12,332 |
|
|
|
12,501 |
|
|
|
13,041 |
|
| Diluted |
|
12,556 |
|
|
|
12,332 |
|
|
|
12,501 |
|
|
|
13,041 |
|
| THE CHILDREN’S PLACE, INC. |
| RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP |
| (In thousands, except per share amounts) |
| (Unaudited) |
| |
| |
Fourth Quarter Ended |
|
Year Ended |
| |
February 3,
2024 |
|
January 28,
2023 |
|
February 3,
2024 |
|
January 28,
2023 |
| |
|
|
|
|
|
|
|
| Net loss |
$ |
(128,836 |
) |
|
$ |
(50,525 |
) |
|
$ |
(154,541 |
) |
|
$ |
(1,138 |
) |
| |
|
|
|
|
|
|
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
| Asset impairment charges |
|
31,429 |
|
|
|
1,877 |
|
|
|
34,543 |
|
|
|
3,256 |
|
| Provision for legal settlement |
|
3,000 |
|
|
|
— |
|
|
|
3,000 |
|
|
|
— |
|
| Fleet optimization |
|
1,546 |
|
|
|
873 |
|
|
|
3,086 |
|
|
|
1,215 |
|
| Credit agreement amendment |
|
1,012 |
|
|
|
— |
|
|
|
1,762 |
|
|
|
— |
|
| Accelerated depreciation |
|
597 |
|
|
|
— |
|
|
|
1,959 |
|
|
|
746 |
|
| Restructuring costs |
|
(225 |
) |
|
|
702 |
|
|
|
10,458 |
|
|
|
1,897 |
|
| Settlement payment received |
|
(6,461 |
) |
|
|
— |
|
|
|
(6,461 |
) |
|
|
— |
|
| Contract termination costs |
|
— |
|
|
|
— |
|
|
|
2,961 |
|
|
|
— |
|
| Professional and consulting fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
721 |
|
| Legal reserve |
|
— |
|
|
|
375 |
|
|
|
— |
|
|
|
375 |
|
| Provision for foreign settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
375 |
|
| Aggregate impact of non-GAAP adjustments |
|
30,898 |
|
|
|
3,827 |
|
|
|
51,308 |
|
|
|
8,585 |
|
| Income tax effect(1) |
|
5,228 |
|
|
|
(995 |
) |
|
|
(80 |
) |
|
|
(2,162 |
) |
| Settlement of tax examination |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,379 |
) |
| Net impact of non-GAAP adjustments |
|
36,126 |
|
|
|
2,832 |
|
|
|
51,228 |
|
|
|
44 |
|
| |
|
|
|
|
|
|
|
| Adjusted net loss |
$ |
(92,710 |
) |
|
$ |
(47,693 |
) |
|
$ |
(103,313 |
) |
|
$ |
(1,094 |
) |
| |
|
|
|
|
|
|
|
| GAAP net loss per common share |
$ |
(10.26 |
) |
|
$ |
(4.10 |
) |
|
$ |
(12.36 |
) |
|
$ |
(0.09 |
) |
| |
|
|
|
|
|
|
|
| Adjusted net loss per common share |
$ |
(7.38 |
) |
|
$ |
(3.87 |
) |
|
$ |
(8.26 |
) |
|
$ |
(0.08 |
) |
(1) The tax effects of the non-GAAP items are calculated based on the statutory rate of the jurisdiction in which the discrete item resides, adjusted for the impact of any valuation allowance.
| |
| THE CHILDREN’S PLACE, INC. |
| RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP |
| (In thousands, except per share amounts) |
| (Unaudited) |
| |
| |
Fourth Quarter Ended |
|
Year Ended |
| |
February 3,
2024 |
|
January 28,
2023 |
|
February 3,
2024 |
|
January 28,
2023 |
| |
|
|
|
|
|
|
|
| Operating loss |
$ |
(61,757 |
) |
|
$ |
(64,792 |
) |
|
$ |
(83,798 |
) |
|
$ |
(1,530 |
) |
| |
|
|
|
|
|
|
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
| Asset impairment charges |
|
31,429 |
|
|
|
1,877 |
|
|
|
34,543 |
|
|
|
3,256 |
|
| Provision for legal settlement |
|
3,000 |
|
|
|
— |
|
|
|
3,000 |
|
|
|
— |
|
| Fleet optimization |
|
1,546 |
|
|
|
873 |
|
|
|
3,086 |
|
|
|
1,215 |
|
| Credit agreement amendment |
|
1,012 |
|
|
|
— |
|
|
|
1,762 |
|
|
|
— |
|
| Accelerated depreciation |
|
597 |
|
|
|
— |
|
|
|
1,959 |
|
|
|
746 |
|
| Restructuring costs |
|
(225 |
) |
|
|
702 |
|
|
|
10,458 |
|
|
|
1,897 |
|
| Settlement payment received |
|
(6,461 |
) |
|
|
— |
|
|
|
(6,461 |
) |
|
|
— |
|
| Contract termination costs |
|
— |
|
|
|
— |
|
|
|
2,961 |
|
|
|
— |
|
| Professional and consulting fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
721 |
|
| Legal reserve |
|
— |
|
|
|
375 |
|
|
|
— |
|
|
|
375 |
|
| Provision for foreign settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
375 |
|
| Aggregate impact of non-GAAP adjustments |
|
30,898 |
|
|
|
3,827 |
|
|
|
51,308 |
|
|
|
8,585 |
|
| |
|
|
|
|
|
|
|
| Adjusted operating income (loss) |
$ |
(30,859 |
) |
|
$ |
(60,965 |
) |
|
$ |
(32,490 |
) |
|
$ |
7,055 |
|
| THE CHILDREN’S PLACE, INC. |
| RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP |
| (In thousands, except per share amounts) |
| (Unaudited) |
| |
| |
Fourth Quarter Ended |
|
Year Ended |
| |
February 3,
2024 |
|
January 28,
2023 |
|
February 3,
2024 |
|
January 28,
2023 |
| |
|
|
|
|
|
|
|
| Gross profit |
$ |
98,911 |
|
$ |
79,724 |
|
$ |
445,274 |
|
$ |
514,162 |
|
| |
|
|
|
|
|
|
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
| Fleet optimization |
|
— |
|
|
— |
|
|
— |
|
|
(621 |
) |
| Aggregate impact of non-GAAP adjustments |
|
— |
|
|
— |
|
|
— |
|
|
(621 |
) |
| |
|
|
|
|
|
|
|
| Adjusted gross profit |
$ |
98,911 |
|
$ |
79,724 |
|
$ |
445,274 |
|
$ |
513,541 |
|
| |
Fourth Quarter Ended |
|
Year Ended |
| |
February 3,
2024 |
|
January 28,
2023 |
|
February 3,
2024 |
|
January 28,
2023 |
| |
|
|
|
|
|
|
|
| Selling, general and administrative expenses |
$ |
117,587 |
|
|
$ |
130,494 |
|
|
$ |
447,343 |
|
|
$ |
460,972 |
|
| |
|
|
|
|
|
|
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
| Provision for legal settlement |
|
(3,000 |
) |
|
|
— |
|
|
|
(3,000 |
) |
|
|
— |
|
| Fleet optimization |
|
(1,546 |
) |
|
|
(873 |
) |
|
|
(3,086 |
) |
|
|
(1,836 |
) |
| Credit agreement amendment |
|
(1,012 |
) |
|
|
— |
|
|
|
(1,762 |
) |
|
|
— |
|
| Restructuring costs |
|
225 |
|
|
|
(702 |
) |
|
|
(10,458 |
) |
|
|
(1,897 |
) |
| Settlement payment received |
|
6,461 |
|
|
|
— |
|
|
|
6,461 |
|
|
|
— |
|
| Contract termination costs |
|
— |
|
|
|
— |
|
|
|
(2,961 |
) |
|
|
(721 |
) |
| Legal reserve |
|
— |
|
|
|
(375 |
) |
|
|
— |
|
|
|
(375 |
) |
| Provision for foreign settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(375 |
) |
| Aggregate impact of non-GAAP adjustments |
|
1,128 |
|
|
|
(1,950 |
) |
|
|
(14,806 |
) |
|
|
(5,204 |
) |
| |
|
|
|
|
|
|
|
| Adjusted selling, general and administrative expenses |
$ |
118,715 |
|
|
$ |
128,544 |
|
|
$ |
432,537 |
|
|
$ |
455,768 |
|
| THE CHILDREN’S PLACE, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (In thousands) |
| (Unaudited) |
| |
| |
February 3,
2024
|
|
January 28,
2023*
|
| |
|
| Assets: |
|
|
|
| Cash and cash equivalents |
$ |
13,639 |
|
|
$ |
16,689 |
| Accounts receivable |
|
33,219 |
|
|
|
49,584 |
| Inventories |
|
362,099 |
|
|
|
447,795 |
| Prepaid expenses and other current assets |
|
43,169 |
|
|
|
47,875 |
| Total current assets |
|
452,126 |
|
|
|
561,943 |
| |
|
|
|
| Property and equipment, net |
|
124,750 |
|
|
|
149,874 |
| Right-of-use assets |
|
175,351 |
|
|
|
155,481 |
| Tradenames, net |
|
41,123 |
|
|
|
70,891 |
| Other assets, net |
|
6,958 |
|
|
|
48,092 |
| Total assets |
$ |
800,308 |
|
|
$ |
986,281 |
| |
|
|
|
| Liabilities and Stockholders' Equity (Deficit): |
|
|
|
| Revolving loan |
$ |
226,715 |
|
|
$ |
286,990 |
| Accounts payable |
|
225,549 |
|
|
|
177,147 |
| Current portion of operating lease liabilities |
|
69,235 |
|
|
|
78,576 |
| Accrued expenses and other current liabilities |
|
94,905 |
|
|
|
105,672 |
| Total current liabilities |
|
616,404 |
|
|
|
648,385 |
| |
|
|
|
| Long-term debt |
|
49,818 |
|
|
|
49,752 |
| Long-term portion of operating lease liabilities |
|
118,073 |
|
|
|
96,482 |
| Other long-term liabilities |
|
25,032 |
|
|
|
33,184 |
| Total liabilities |
|
809,327 |
|
|
|
827,803 |
| |
|
|
|
| Stockholders' equity (deficit) |
|
(9,019 |
) |
|
|
158,478 |
| Total liabilities and stockholders' equity (deficit) |
$ |
800,308 |
|
|
$ |
986,281 |
* Derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended January 28, 2023.
| |
| THE CHILDREN’S PLACE, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (In thousands) |
| (Unaudited) |
| |
| |
Year Ended |
| |
February 3,
2024 |
|
January 28,
2023 |
| |
|
|
|
| Net loss |
$ |
(154,541 |
) |
|
$ |
(1,138 |
) |
| Non-cash adjustments |
|
197,448 |
|
|
|
159,732 |
|
| Working capital |
|
49,893 |
|
|
|
(166,812 |
) |
| Net cash provided by (used in) operating activities |
|
92,800 |
|
|
|
(8,218 |
) |
| |
|
|
|
| Net cash used in investing activities |
|
(27,790 |
) |
|
|
(45,948 |
) |
| |
|
|
|
| Net cash provided by (used in) financing activities |
|
(68,268 |
) |
|
|
17,056 |
|
| |
|
|
|
| Effect of exchange rate changes on cash and cash equivalents |
|
208 |
|
|
|
(988 |
) |
| |
|
|
|
| Net decrease in cash and cash equivalents |
|
(3,050 |
) |
|
|
(38,098 |
) |
| |
|
|
|
| Cash and cash equivalents, beginning of period |
|
16,689 |
|
|
|
54,787 |
|
| |
|
|
|
| Cash and cash equivalents, end of period |
$ |
13,639 |
|
|
$ |
16,689 |
|
Source: The Children's Place, Inc.
