plce-20221029
00010418591/282022Q3FALSE00010418592022-01-302022-10-2900010418592022-11-25xbrli:shares00010418592022-10-29iso4217:USD00010418592022-01-2900010418592021-10-30iso4217:USDxbrli:shares00010418592022-07-312022-10-2900010418592021-08-012021-10-3000010418592021-01-312021-10-300001041859us-gaap:CommonStockMember2022-07-300001041859us-gaap:AdditionalPaidInCapitalMember2022-07-300001041859us-gaap:DeferredCompensationShareBasedPaymentsMember2022-07-300001041859us-gaap:RetainedEarningsMember2022-07-300001041859us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-300001041859us-gaap:TreasuryStockCommonMember2022-07-3000010418592022-07-300001041859us-gaap:CommonStockMember2022-07-312022-10-290001041859us-gaap:AdditionalPaidInCapitalMember2022-07-312022-10-290001041859us-gaap:RetainedEarningsMember2022-07-312022-10-290001041859us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-312022-10-290001041859us-gaap:DeferredCompensationShareBasedPaymentsMember2022-07-312022-10-290001041859us-gaap:TreasuryStockCommonMember2022-07-312022-10-290001041859us-gaap:CommonStockMember2022-10-290001041859us-gaap:AdditionalPaidInCapitalMember2022-10-290001041859us-gaap:DeferredCompensationShareBasedPaymentsMember2022-10-290001041859us-gaap:RetainedEarningsMember2022-10-290001041859us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-290001041859us-gaap:TreasuryStockCommonMember2022-10-290001041859us-gaap:CommonStockMember2022-01-290001041859us-gaap:AdditionalPaidInCapitalMember2022-01-290001041859us-gaap:DeferredCompensationShareBasedPaymentsMember2022-01-290001041859us-gaap:RetainedEarningsMember2022-01-290001041859us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-290001041859us-gaap:TreasuryStockCommonMember2022-01-290001041859us-gaap:CommonStockMember2022-01-302022-10-290001041859us-gaap:AdditionalPaidInCapitalMember2022-01-302022-10-290001041859us-gaap:RetainedEarningsMember2022-01-302022-10-290001041859us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-302022-10-290001041859us-gaap:DeferredCompensationShareBasedPaymentsMember2022-01-302022-10-290001041859us-gaap:TreasuryStockCommonMember2022-01-302022-10-290001041859us-gaap:CommonStockMember2021-07-310001041859us-gaap:AdditionalPaidInCapitalMember2021-07-310001041859us-gaap:DeferredCompensationShareBasedPaymentsMember2021-07-310001041859us-gaap:RetainedEarningsMember2021-07-310001041859us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-310001041859us-gaap:TreasuryStockCommonMember2021-07-3100010418592021-07-310001041859us-gaap:CommonStockMember2021-08-012021-10-300001041859us-gaap:AdditionalPaidInCapitalMember2021-08-012021-10-300001041859us-gaap:RetainedEarningsMember2021-08-012021-10-300001041859us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-08-012021-10-300001041859us-gaap:DeferredCompensationShareBasedPaymentsMember2021-08-012021-10-300001041859us-gaap:TreasuryStockCommonMember2021-08-012021-10-300001041859us-gaap:CommonStockMember2021-10-300001041859us-gaap:AdditionalPaidInCapitalMember2021-10-300001041859us-gaap:DeferredCompensationShareBasedPaymentsMember2021-10-300001041859us-gaap:RetainedEarningsMember2021-10-300001041859us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-300001041859us-gaap:TreasuryStockCommonMember2021-10-300001041859us-gaap:CommonStockMember2021-01-300001041859us-gaap:AdditionalPaidInCapitalMember2021-01-300001041859us-gaap:DeferredCompensationShareBasedPaymentsMember2021-01-300001041859us-gaap:RetainedEarningsMember2021-01-300001041859us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-300001041859us-gaap:TreasuryStockCommonMember2021-01-3000010418592021-01-300001041859us-gaap:CommonStockMember2021-01-312021-10-300001041859us-gaap:AdditionalPaidInCapitalMember2021-01-312021-10-300001041859us-gaap:RetainedEarningsMember2021-01-312021-10-300001041859us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-312021-10-300001041859us-gaap:DeferredCompensationShareBasedPaymentsMember2021-01-312021-10-300001041859us-gaap:TreasuryStockCommonMember2021-01-312021-10-30plce:segment0001041859plce:SouthMember2022-07-312022-10-290001041859plce:SouthMember2021-08-012021-10-300001041859plce:SouthMember2022-01-302022-10-290001041859plce:SouthMember2021-01-312021-10-300001041859plce:NortheastMember2022-07-312022-10-290001041859plce:NortheastMember2021-08-012021-10-300001041859plce:NortheastMember2022-01-302022-10-290001041859plce:NortheastMember2021-01-312021-10-300001041859plce:WestMember2022-07-312022-10-290001041859plce:WestMember2021-08-012021-10-300001041859plce:WestMember2022-01-302022-10-290001041859plce:WestMember2021-01-312021-10-300001041859plce:MidwestMember2022-07-312022-10-290001041859plce:MidwestMember2021-08-012021-10-300001041859plce:MidwestMember2022-01-302022-10-290001041859plce:MidwestMember2021-01-312021-10-300001041859plce:InternationalAndOtherMember2022-07-312022-10-290001041859plce:InternationalAndOtherMember2021-08-012021-10-300001041859plce:InternationalAndOtherMember2022-01-302022-10-290001041859plce:InternationalAndOtherMember2021-01-312021-10-300001041859plce:AccruedExpensesAndOtherCurrentLiabilitiesMember2022-10-290001041859plce:AccruedExpensesAndOtherCurrentLiabilitiesMember2022-01-290001041859plce:AccruedExpensesAndOtherCurrentLiabilitiesMember2021-10-300001041859plce:GiftCardsMember2022-10-290001041859plce:GiftCardsMember2022-01-290001041859plce:GiftCardsMember2021-10-300001041859plce:GiftCardsMember2022-01-302022-10-290001041859us-gaap:TradeNamesMember2022-10-290001041859us-gaap:TradeNamesMember2022-01-302022-10-290001041859us-gaap:TradeNamesMember2022-10-290001041859us-gaap:CustomerRelatedIntangibleAssetsMember2022-01-302022-10-290001041859us-gaap:CustomerRelatedIntangibleAssetsMember2022-10-290001041859us-gaap:TradeNamesMember2022-01-290001041859us-gaap:TradeNamesMember2022-01-302022-07-300001041859us-gaap:TradeNamesMember2022-01-290001041859us-gaap:CustomerRelatedIntangibleAssetsMember2022-01-302022-07-300001041859us-gaap:CustomerRelatedIntangibleAssetsMember2022-01-290001041859us-gaap:TradeNamesMember2021-10-300001041859us-gaap:TradeNamesMember2021-01-312021-10-300001041859us-gaap:TradeNamesMember2021-10-300001041859us-gaap:CustomerRelatedIntangibleAssetsMember2021-01-312021-10-300001041859us-gaap:CustomerRelatedIntangibleAssetsMember2021-10-300001041859us-gaap:LandAndLandImprovementsMember2022-10-290001041859us-gaap:LandAndLandImprovementsMember2022-01-290001041859us-gaap:LandAndLandImprovementsMember2021-10-300001041859us-gaap:BuildingAndBuildingImprovementsMember2022-10-290001041859us-gaap:BuildingAndBuildingImprovementsMember2022-01-290001041859us-gaap:BuildingAndBuildingImprovementsMember2021-10-300001041859plce:MaterialHandlingEquipmentMember2022-10-290001041859plce:MaterialHandlingEquipmentMember2022-01-290001041859plce:MaterialHandlingEquipmentMember2021-10-300001041859us-gaap:LeaseholdImprovementsMember2022-10-290001041859us-gaap:LeaseholdImprovementsMember2022-01-290001041859us-gaap:LeaseholdImprovementsMember2021-10-300001041859plce:StoreFixturesAndEquipmentMember2022-10-290001041859plce:StoreFixturesAndEquipmentMember2022-01-290001041859plce:StoreFixturesAndEquipmentMember2021-10-300001041859us-gaap:ComputerSoftwareIntangibleAssetMember2022-10-290001041859us-gaap:ComputerSoftwareIntangibleAssetMember2022-01-290001041859us-gaap:ComputerSoftwareIntangibleAssetMember2021-10-300001041859us-gaap:ConstructionInProgressMember2022-10-290001041859us-gaap:ConstructionInProgressMember2022-01-290001041859us-gaap:ConstructionInProgressMember2021-10-300001041859srt:MinimumMember2022-10-290001041859srt:MaximumMember2022-10-29xbrli:pure0001041859us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberplce:AssetBasedRevolvingCreditFacilityMember2021-11-160001041859plce:TermLoanMemberus-gaap:SecuredDebtMember2021-11-160001041859plce:ABLCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-11-160001041859us-gaap:SecuredDebtMemberplce:NewTermLoanMember2021-11-160001041859us-gaap:LineOfCreditMemberplce:ABLCreditFacilityMemberplce:CanadianCreditFacilityMember2021-11-260001041859us-gaap:LineOfCreditMemberplce:ABLCreditFacilityMemberplce:StandbyAndDocumentaryLettersOfCreditMember2021-11-260001041859us-gaap:PrimeRateMemberus-gaap:LineOfCreditMemberplce:ABLCreditFacilityMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2021-11-162021-11-160001041859us-gaap:PrimeRateMemberus-gaap:LineOfCreditMemberplce:ABLCreditFacilityMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2021-11-162021-11-160001041859us-gaap:LineOfCreditMemberplce:ABLCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:MinimumMember2021-11-162021-11-160001041859us-gaap:LineOfCreditMemberplce:ABLCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:MaximumMember2021-11-162021-11-160001041859us-gaap:LineOfCreditMemberplce:ABLCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-11-162021-11-160001041859us-gaap:LineOfCreditMemberplce:CommercialLetterOfCreditMemberplce:ABLCreditFacilityMembersrt:MinimumMember2021-11-162021-11-160001041859us-gaap:LineOfCreditMemberplce:CommercialLetterOfCreditMemberplce:ABLCreditFacilityMembersrt:MaximumMember2021-11-162021-11-160001041859us-gaap:LineOfCreditMemberplce:ABLCreditFacilityMemberus-gaap:StandbyLettersOfCreditMembersrt:MinimumMember2021-11-162021-11-160001041859us-gaap:LineOfCreditMemberplce:ABLCreditFacilityMembersrt:MaximumMemberus-gaap:StandbyLettersOfCreditMember2021-11-162021-11-160001041859us-gaap:RevolvingCreditFacilityMemberplce:ABLCreditFacilityAndPreviousABLCreditFacilityMember2022-10-290001041859us-gaap:RevolvingCreditFacilityMemberplce:ABLCreditFacilityAndPreviousABLCreditFacilityMember2022-01-290001041859us-gaap:RevolvingCreditFacilityMemberplce:ABLCreditFacilityAndPreviousABLCreditFacilityMember2021-10-300001041859plce:ABLCreditFacilityAndPreviousABLCreditFacilityMember2022-10-290001041859plce:ABLCreditFacilityAndPreviousABLCreditFacilityMember2022-01-290001041859plce:ABLCreditFacilityAndPreviousABLCreditFacilityMember2021-10-300001041859plce:ABLCreditFacilityAndPreviousABLCreditFacilityMemberus-gaap:StandbyLettersOfCreditMember2022-10-290001041859plce:ABLCreditFacilityAndPreviousABLCreditFacilityMemberus-gaap:StandbyLettersOfCreditMember2022-01-290001041859plce:ABLCreditFacilityAndPreviousABLCreditFacilityMemberus-gaap:StandbyLettersOfCreditMember2021-10-3000010418592022-01-302022-04-300001041859plce:AssetBasedRevolvingCreditFacilityMemberplce:SublimitLetterOfCreditMember2022-01-290001041859plce:AssetBasedRevolvingCreditFacilityMemberplce:SublimitLetterOfCreditMember2022-10-290001041859plce:AssetBasedRevolvingCreditFacilityMemberplce:SublimitLetterOfCreditMember2021-10-300001041859us-gaap:SecuredDebtMemberplce:NewTermLoanMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-11-162021-11-160001041859us-gaap:SecuredDebtMemberplce:NewTermLoanMemberus-gaap:BaseRateMember2021-11-162021-11-160001041859us-gaap:SecuredDebtMember2022-07-312022-10-290001041859us-gaap:SecuredDebtMember2022-01-302022-10-2900010418592017-04-290001041859plce:A2018ShareRepurchaseProgramMember2018-03-310001041859plce:A2018ShareRepurchaseProgramMember2021-11-300001041859plce:A2018ShareRepurchaseProgramMember2022-10-290001041859plce:DeferredAwardsMember2022-07-312022-10-290001041859plce:DeferredAwardsMember2021-08-012021-10-300001041859plce:DeferredAwardsMember2022-01-302022-10-290001041859plce:DeferredAwardsMember2021-01-312021-10-300001041859us-gaap:PerformanceSharesMember2022-07-312022-10-290001041859us-gaap:PerformanceSharesMember2021-08-012021-10-300001041859us-gaap:PerformanceSharesMember2022-01-302022-10-290001041859us-gaap:PerformanceSharesMember2021-01-312021-10-300001041859us-gaap:CostOfSalesMember2022-07-312022-10-290001041859us-gaap:CostOfSalesMember2021-08-012021-10-300001041859us-gaap:CostOfSalesMember2022-01-302022-10-290001041859us-gaap:CostOfSalesMember2021-01-312021-10-3000010418592020-02-022021-01-300001041859plce:TheChildrensPlaceUSMember2022-10-29plce:store0001041859plce:TheChildrensPlaceInternationalMember2022-10-290001041859plce:TheChildrensPlaceUSMember2021-10-300001041859plce:TheChildrensPlaceInternationalMember2021-10-300001041859country:USus-gaap:OperatingSegmentsMemberplce:TheChildrensPlaceUSMember2022-07-312022-10-290001041859country:USus-gaap:OperatingSegmentsMemberplce:TheChildrensPlaceUSMember2021-08-012021-10-300001041859country:USus-gaap:OperatingSegmentsMemberplce:TheChildrensPlaceUSMember2022-01-302022-10-290001041859country:USus-gaap:OperatingSegmentsMemberplce:TheChildrensPlaceUSMember2021-01-312021-10-300001041859us-gaap:NonUsMemberplce:TheChildrensPlaceInternationalMemberus-gaap:OperatingSegmentsMember2022-07-312022-10-290001041859us-gaap:NonUsMemberplce:TheChildrensPlaceInternationalMemberus-gaap:OperatingSegmentsMember2021-08-012021-10-300001041859us-gaap:NonUsMemberplce:TheChildrensPlaceInternationalMemberus-gaap:OperatingSegmentsMember2022-01-302022-10-290001041859us-gaap:NonUsMemberplce:TheChildrensPlaceInternationalMemberus-gaap:OperatingSegmentsMember2021-01-312021-10-30
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
 FORM 10-Q
(Mark One)
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 29, 2022
or
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________             
Commission file number 0-23071

 THE CHILDREN’S PLACE, INC.
(Exact name of registrant as specified in its charter)
Delaware 31-1241495
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
500 Plaza Drive  
Secaucus, New Jersey
 07094
(Address of principal executive offices) (Zip Code)
(201) 558-2400
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:Trading Symbol:Name of each exchange on which registered:
Common Stock, $0.10 par valuePLCENasdaq Global Select Market
___________________________________________ 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer 
x
Accelerated filer 
Non-accelerated filer 
Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No x 
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date: Common Stock, par value $0.10 per share, outstanding at November 25, 2022: 12,227,788.


Table of Contents

THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES 
QUARTERLY REPORT ON FORM 10-Q 
FOR THE PERIOD ENDED OCTOBER 29, 2022
 
TABLE OF CONTENTS
 
PAGE
  
 
Consolidated Balance Sheets as of October 29, 2022, January 29, 2022, and October 30, 2021
 
Consolidated Statements of Operations for the thirteen weeks and thirty-nine weeks ended October 29, 2022 and October 30, 2021
Consolidated Statements of Comprehensive Income for the thirteen weeks and thirty-nine weeks ended October 29, 2022 and October 30, 2021
Consolidated Statements of Changes in StockholdersEquity for the thirteen weeks and thirty-nine weeks ended October 29, 2022 and October 30, 2021
 
Consolidated Statements of Cash Flows for the thirty-nine weeks ended October 29, 2022 and October 30, 2021
 
  
  



Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS.

THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
October 29,
2022
January 29,
2022
October 30,
2021
(unaudited)(unaudited)
(in thousands, except par value)
ASSETS
Current assets:   
Cash and cash equivalents$19,244 $54,787 $67,062 
Accounts receivable48,820 21,863 38,758 
Inventories548,719 428,813 441,817 
Prepaid expenses and other current assets48,012 76,075 59,628 
Total current assets664,795 581,538 607,265 
Long-term assets:   
Property and equipment, net154,975 155,006 159,243 
Right-of-use assets160,041 194,653 209,430 
Tradenames, net71,091 71,692 71,892 
Deferred income taxes20,916 23,109 27,801 
Other assets12,799 11,462 12,735 
Total assets$1,084,617 $1,037,460 $1,088,366 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:   
Revolving loan$265,000 $175,318 $174,384 
Current portion of long-term debt  28,270 
Accounts payable221,432 183,758 173,055 
Current portion of operating lease liabilities77,070 91,097 94,122 
Income taxes payable506 10,984 10,701 
Accrued expenses and other current liabilities119,660 130,669 143,866 
Total current liabilities683,668 591,826 624,398 
Long-term liabilities:   
Long-term debt49,735 49,685 48,892 
Long-term portion of operating lease liabilities104,073 134,761 154,325 
Income taxes payable18,925 14,939 14,939 
Other tax liabilities2,347 8,689 6,285 
Other long-term liabilities13,693 12,088 17,279 
Total liabilities872,441 811,988 866,118 
Commitments and contingencies (see Note 7)   
Stockholders' equity:   
Preferred stock, $1.00 par value, 1,000 shares authorized, 0 shares issued and outstanding
   
Common stock, $0.10 par value, 100,000 shares authorized; 12,662, 13,964, and 14,468 issued; 12,597, 13,903, and 14,408 outstanding
1,266 1,396 1,447 
Additional paid-in capital148,546 160,348 164,010 
Treasury stock, at cost (65, 61, and 60 shares)
(3,661)(3,443)(3,373)
Deferred compensation3,661 3,443 3,373 
Accumulated other comprehensive loss(17,011)(14,186)(12,962)
Retained earnings79,375 77,914 69,753 
Total stockholders’ equity212,176 225,472 222,248 
Total liabilities and stockholders’ equity$1,084,617 $1,037,460 $1,088,366 


See accompanying notes to these consolidated financial statements.
1

Table of Contents

THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 Thirteen Weeks EndedThirty-nine Weeks Ended
 October 29,
2022
October 30,
2021
October 29,
2022
October 30,
2021
(in thousands, except earnings per common share)
Net sales$509,120 $558,225 $1,252,355 $1,407,561 
Cost of sales (exclusive of depreciation and amortization)332,189 313,394 817,915 806,663 
Gross profit176,931 244,831 434,440 600,898 
Selling, general, and administrative expenses106,631 115,563 330,480 337,921 
Depreciation and amortization12,463 14,204 39,320 44,157 
Asset impairment charges 1,254 1,379 1,254 
Operating income57,837 113,810 63,261 217,566 
Interest expense(3,810)(3,963)(8,123)(13,077)
Interest income24 4 43 11 
Income before provision for income taxes54,051 109,851 55,181 204,500 
Provision for income taxes11,196 30,983 5,794 56,332 
Net income$42,855 $78,868 $49,387 $148,168 
Earnings per common share
Basic$3.28 $5.38 $3.72 $10.08 
Diluted$3.26 $5.30 $3.68 $9.89 
Weighted average common shares outstanding
Basic13,064 14,668 13,277 14,706 
Diluted13,162 14,873 13,409 14,979 
 














See accompanying notes to these consolidated financial statements.
2

Table of Contents

THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)


 Thirteen Weeks EndedThirty-nine Weeks Ended
 October 29,
2022
October 30,
2021
October 29,
2022
October 30,
2021
(in thousands)
Net income$42,855 $78,868 $49,387 $148,168 
Other comprehensive income (loss):
Foreign currency translation adjustment(2,397)323 (2,825)854 
Total comprehensive income$40,458 $79,191 $46,562 $149,022 
 

























See accompanying notes to these consolidated financial statements.
3

Table of Contents

THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)


Thirteen Weeks Ended October 29, 2022
Accumulated
AdditionalOtherTotal
Common StockPaid-InDeferredRetainedComprehensiveTreasury Stock
Stockholders’
(in thousands)SharesAmountCapitalCompensationEarningsLossSharesAmountEquity
Balance, July 30, 202213,087 $1,309 $151,954 $3,587 $45,532 $(14,614)(64)$(3,587)$184,181 
Vesting of stock awards9 1 (1) 
Stock-based compensation expense5,221 5,221 
Purchase and retirement of common stock(434)(44)(8,628)(9,012)(17,684)
Other comprehensive loss(2,397)(2,397)
Deferral of common stock into deferred compensation plan74 (1)(74) 
Net income42,855 42,855 
Balance, October 29, 202212,662 $1,266 $148,546 $3,661 $79,375 $(17,011)(65)$(3,661)$212,176 



Thirty-nine Weeks Ended October 29, 2022
Accumulated
AdditionalOtherTotal
Common StockPaid-InDeferredRetainedComprehensiveTreasury Stock
Stockholders’
(in thousands)SharesAmountCapitalCompensationEarningsLossSharesAmountEquity
Balance, January 29, 2022
13,964 $1,396 $160,348 $3,443 $77,914 $(14,186)(61)$(3,443)$225,472 
Vesting of stock awards279 28 (28) 
Stock-based compensation expense19,055 19,055 
Purchase and retirement of common stock(1,581)(158)(30,829)(47,926)(78,913)
Other comprehensive loss(2,825)(2,825)
Deferral of common stock into deferred compensation plan218 (4)(218) 
Net income49,387 49,387 
Balance, October 29, 2022
12,662 $1,266 $148,546 $3,661 $79,375 $(17,011)(65)$(3,661)$212,176 










See accompanying notes to these consolidated financial statements.
4

Table of Contents

THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Continued)
(Unaudited)


Thirteen Weeks Ended October 30, 2021
Accumulated
AdditionalOtherTotal
Common StockPaid-InDeferredRetainedComprehensiveTreasury Stock
Stockholders’
(in thousands)SharesAmountCapitalCompensationEarningsLossSharesAmountEquity
Balance, July 31, 202114,831$1,483 $164,290 $3,304 $15,697 $(13,285)(59)$(3,304)$168,185 
Vesting of stock awards91 (1) 
Stock-based compensation expense6,594 6,594 
Purchase and retirement of common stock(372)(37)(6,873)(24,812)(31,722)
Other comprehensive income323 323 
Deferral of common stock into deferred compensation plan69 (1)(69) 
Net income78,868 78,868 
Balance, October 30, 202114,468$1,447 $164,010 $3,373 $69,753 $(12,962)(60)$(3,373)$222,248 



Thirty-nine Weeks Ended October 30, 2021
Accumulated
AdditionalRetainedOtherTotal
Common StockPaid-InDeferredEarningsComprehensiveTreasury Stock
Stockholders’
(in thousands)SharesAmountCapitalCompensation(Deficit)LossSharesAmountEquity
Balance, January 30, 202114,641 $1,464 $148,519 $3,165 $(42,790)$(13,816)(57)$(3,165)$93,377 
Vesting of stock awards345 35 (35) 
Stock-based compensation expense25,036 25,036 
Purchase and retirement of common stock(518)(52)(9,510)(35,625)(45,187)
Other comprehensive income854 854 
Deferral of common stock into deferred compensation plan208 (3)(208) 
Net income148,168 148,168 
Balance, October 30, 202114,468 $1,447 $164,010 $3,373 $69,753 $(12,962)(60)$(3,373)$222,248 










See accompanying notes to these consolidated financial statements.
5

Table of Contents

THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 Thirty-nine Weeks Ended
 October 29,
2022
October 30,
2021
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net income$49,387 $148,168 
Reconciliation of net income to net cash provided by (used in) operating activities:  
Non-cash portion of operating lease expense65,046 76,418 
Depreciation and amortization39,320 44,157 
Non-cash stock-based compensation expense19,055 25,036 
Deferred income tax provision2,186 17,974 
Asset impairment charges1,379 1,254 
Other non-cash items, net58 1,101 
Changes in operating assets and liabilities:
Inventories(123,012)(55,183)
Accounts receivable and other assets(28,427)(2,121)
Prepaid expenses and other current assets1,680 (4,995)
Income taxes payable, net of prepayments18,896 6,437 
Accounts payable and other current liabilities11,764 (47,980)
Lease liabilities(75,767)(142,574)
Other long-term liabilities1,470 (244)
Net cash provided by (used in) operating activities(16,965)67,448 
CASH FLOWS FROM INVESTING ACTIVITIES:  
Capital expenditures(31,193)(22,000)
Change in deferred compensation plan(421)48 
Net cash used in investing activities(31,614)(21,952)
CASH FLOWS FROM FINANCING ACTIVITIES:  
Borrowings under revolving credit facility555,383 557,034 
Repayments under revolving credit facility(465,701)(552,429)
Repayment of term loan (1,000)
Purchase and retirement of common stock, including shares surrendered for tax withholdings and transaction costs(75,672)(45,187)
Payment of debt issuance costs (366)
Net cash provided by (used in) financing activities14,010 (41,948)
Effect of exchange rate changes on cash and cash equivalents(974)(34)
Net increase (decrease) in cash and cash equivalents(35,543)3,514 
Cash and cash equivalents, beginning of period54,787 63,548 
Cash and cash equivalents, end of period$19,244 $67,062 
 




See accompanying notes to these consolidated financial statements.
6

Table of Contents

THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
 
 Thirty-nine Weeks Ended
 October 29,
2022
October 30,
2021
(in thousands)
OTHER CASH FLOW INFORMATION:  
Net cash paid (received) for income taxes$(15,680)$31,718 
Cash paid for interest7,545 11,870 
Increase (decrease) in accrued capital expenditures7,795 (135)
 



























See accompanying notes to these consolidated financial statements.
7

Table of Contents
THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1.BASIS OF PRESENTATION
Description of Business
The Children’s Place, Inc. and subsidiaries (collectively, the “Company”) is the largest pure-play children’s specialty apparel retailer in North America. The Company provides apparel, footwear, accessories, and other items for children and ‘tweens.’ The Company designs, contracts to manufacture, sells at retail and wholesale, and licenses to sell trend right, high-quality merchandise predominantly at value prices, primarily under the Company’s proprietary “The Children’s Place”, “Place”, “Baby Place”, “Gymboree”, “Sugar & Jade”, and “PJ Place” brand names.
The Company classifies its business into two segments: The Children’s Place U.S. and The Children’s Place International. Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico-based stores and revenue from its U.S.-based wholesale business. Included in The Children’s Place International segment are its Canadian-based stores, revenue from the Company’s Canadian-based wholesale business, as well as revenue from international franchisees. Each segment includes an e-commerce business located at www.childrensplace.com, www.gymboree.com, www.sugarandjade.com, and www.pjplace.com.
Terms that are commonly used in the notes to the Company’s consolidated financial statements are defined as follows:
Third Quarter 2022 — The thirteen weeks ended October 29, 2022
Third Quarter 2021 — The thirteen weeks ended October 30, 2021
First Quarter 2022 — The thirteen weeks ended April 30, 2022
Year-To-Date 2022 — The thirty-nine weeks ended October 29, 2022
Year-To-Date 2021 — The thirty-nine weeks ended October 30, 2021
Fiscal 2022 – The fifty-two weeks ending January 28, 2023
Fiscal 2021 – The fifty-two weeks ended January 29, 2022
SEC — U.S. Securities and Exchange Commission
U.S. GAAP — Generally Accepted Accounting Principles in the United States
FASB — Financial Accounting Standards Board
FASB ASC — FASB Accounting Standards Codification, which serves as the source for authoritative U.S. GAAP, except that rules and interpretive releases by the SEC are also sources of authoritative U.S. GAAP for SEC registrants
Basis of Presentation
The unaudited consolidated financial statements and accompanying notes to consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and the rules and regulations of the SEC. Accordingly, certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. As of October 29, 2022, January 29, 2022, and October 30, 2021, the Company did not have any investments in unconsolidated affiliates. FASB ASC 810—Consolidation is considered when determining whether an entity is subject to consolidation.
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of October 29, 2022 and October 30, 2021, the results of its consolidated operations, consolidated comprehensive income, and consolidated changes in stockholders’ equity for the thirteen and thirty-nine weeks ended October 29, 2022 and October 30, 2021, and consolidated cash flows for the thirty-nine weeks ended October 29, 2022 and October 30, 2021. The consolidated balance sheet as of January 29, 2022 was derived from audited financial statements. Due to the seasonal nature of the Company’s business, the results of operations for the thirteen and thirty-nine weeks ended October 29, 2022 and October 30, 2021 are not necessarily indicative of operating results for a full fiscal year. These consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2022.
8


THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
Fiscal Year
The Company’s fiscal year is a fifty-two week or fifty-three week period ending on the Saturday on or nearest to January 31.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and amounts of revenues and expenses reported during the period. Actual results could differ from the assumptions used and estimates made by management, which could have a material impact on the Company’s financial position or results of operations. Critical accounting estimates inherent in the preparation of the consolidated financial statements include impairment of long-lived assets, income taxes, stock-based compensation, and inventory valuation.
Recent Accounting Standards Updates
There are no pending accounting standards updates that are currently expected to have a material impact on the Company.

2. REVENUES
Revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.
The following table presents the Company’s revenues disaggregated by geography:    
                                                            
 Thirteen Weeks EndedThirty-nine Weeks Ended
 October 29,
2022
October 30,
2021
October 29,
2022
October 30,
2021
(in thousands)
Net sales:
South$183,536 $194,081 $466,276 $524,449 
Northeast108,404 129,308 255,913 309,284 
West61,101 80,103 163,644 202,180 
Midwest62,337 71,482 145,168 180,375 
International and other (1)
93,742 83,251 221,354 191,273 
Total net sales$509,120 $558,225 $1,252,355 $1,407,561 
____________________________________________
(1)Includes retail and e-commerce sales in Canada and Puerto Rico, wholesale and franchisee sales, and certain amounts earned under the Company’s private label credit card program.
The Company recognizes revenue, including shipping and handling fees billed to customers, upon purchase at the Company’s retail stores or when received by the customer if the product was purchased via e-commerce, net of coupon redemptions and anticipated sales returns. The Company deferred sales of $8.9 million, $3.6 million, and $8.8 million within Accrued expenses and other current liabilities as of October 29, 2022, January 29, 2022, and October 30, 2021, respectively, based upon estimated time of delivery, at which point control passes to the customer. Sales tax collected from customers is excluded from revenue.
For the sale of goods with a right of return, the Company recognizes revenue for the consideration it expects to be entitled to and calculates an allowance for estimated sales returns based upon the Company’s sales return experience. Adjustments to the allowance for estimated sales returns in subsequent periods have not been material based on historical data, thereby reducing the uncertainty inherent in such estimates. The allowance for estimated sales returns, which is recorded in Accrued expenses and other current liabilities, was $2.2 million, $1.0 million, and $2.9 million as of October 29, 2022, January 29, 2022, and October 30, 2021, respectively.
9


THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
The Company’s private label credit card is issued to customers for use exclusively at The Children’s Place stores and online at www.childrensplace.com, www.gymboree.com, www.sugarandjade.com, and www.pjplace.com, and credit is extended to such customers by a third-party financial institution on a non-recourse basis to the Company. The private label credit card includes multiple performance obligations for the Company, including marketing and promoting the program on behalf of the bank and the operation of the loyalty rewards program. Included in the agreement with the third-party financial institution was an upfront bonus paid to the Company. The upfront bonus is recognized as revenue and allocated between brand and reward obligations. As the license of the Company’s brand is the predominant item in the performance obligation, the amount allocated to the brand obligation is recognized on a straight-line basis over the initial term. The amount allocated to the reward obligation is recognized on a point-in-time basis as redemptions under the loyalty program occur.
In measuring revenue and determining the consideration the Company is entitled to as part of a contract with a customer, the Company takes into account the related elements of variable consideration, such as additional bonuses, including profit-sharing, over the life of the private label credit card program. Similar to the upfront bonus, the usage-based royalties and bonuses are recognized as revenue and allocated between the brand and reward obligations. The amount allocated to the brand obligation is recognized on a straight-line basis over the initial term. The amount allocated to the reward obligation is recognized on a point-in-time basis as redemptions under the loyalty program occur. In addition, the annual profit-sharing amount is estimated and recognized quarterly within an annual period when earned. The additional bonuses are amortized over the contract term based on anticipated progress against future targets and level of risk associated with achieving the targets.
The Company has a points-based customer loyalty program in which customers earn points based on purchases and other promotional activities. These points can be redeemed for coupons to discount future purchases. A contract liability is estimated based on the standalone selling price of benefits earned by customers through the program and the related redemption experience under the program. The value of each point earned is recorded as deferred revenue and is included within Accrued expenses and other current liabilities. The total contract liabilities related to this program were $2.0 million, $5.0 million, and $6.0 million as of October 29, 2022, January 29, 2022, and October 30, 2021, respectively.
The Company’s policy with respect to gift cards is to record revenue as and when the gift cards are redeemed for merchandise. The Company recognizes gift card breakage income in proportion to the pattern of rights exercised by the customer when the Company expects to be entitled to breakage and the Company determines that it does not have a legal obligation to remit the value of the unredeemed gift card to the relevant jurisdiction as unclaimed or abandoned property. Gift card breakage is recorded within Net sales. Prior to their redemption, gift cards are recorded as a liability within Accrued expenses and other current liabilities. The liability is estimated based on expected breakage that considers historical patterns of redemption. The gift card liability balance as of October 29, 2022, January 29, 2022, and October 30, 2021 was $11.2 million, $12.1 million, and $12.4 million, respectively. During Year-To-Date 2022, the Company recognized Net sales of $4.5 million related to the gift card liability balance that existed at January 29, 2022.
The Company has an international program of territorial agreements with franchisees. The Company generates revenues from the franchisees from the sale of product and, in certain cases, sales royalties. The Company records net sales and cost of goods sold on the sale of product to franchisees when the franchisee takes ownership of the product. The Company records net sales for royalties when the applicable franchisee sells the product to their customers. Under certain agreements, the Company receives a fee from each franchisee for exclusive territorial rights and based on the opening of new stores. The Company records these territorial fees as deferred revenue and amortizes the fee into net sales over the life of the territorial agreement.

3. INTANGIBLE ASSETS
The Company’s intangible assets were as follows:
October 29, 2022
Useful LifeGross AmountAccumulated AmortizationNet Amount
(in thousands)
Gymboree tradename (1)
Indefinite$69,953 $— $69,953 
Crazy 8 tradename (1)
5 years4,000 (2,862)1,138 
Customer databases (2)
3 years3,000 (3,000) 
Total intangibles$76,953 $(5,862)$71,091 
10


THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
January 29, 2022
Useful LifeGross AmountAccumulated AmortizationNet Amount
(in thousands)
Gymboree tradename (1)
Indefinite$69,953 $— $69,953 
Crazy 8 tradename (1)
5 years4,000 (2,261)1,739 
Customer databases (2)
3 years3,000 (2,827)173 
Total intangibles$76,953 $(5,088)$71,865 
October 30, 2021
Useful LifeGross AmountAccumulated AmortizationNet Amount
(in thousands)
Gymboree tradename (1)
Indefinite$69,953 $— $69,953 
Crazy 8 tradename (1)
5 years4,000 (2,061)1,939 
Customer databases (2)
3 years3,000 (2,578)422 
Total intangibles$76,953 $(4,639)$72,314 
____________________________________________
(1)Included within Tradenames, net on the Consolidated Balance Sheets.
(2)Included within Other assets on the Consolidated Balance Sheets.

4. PROPERTY AND EQUIPMENT, NET
Property and equipment consisted of the following:
 October 29,
2022
January 29,
2022
October 30,
2021
(in thousands)
Property and equipment:   
Land and land improvements$3,403 $3,403 $3,403 
Building and improvements36,187 36,045