Children’s Place, Inc. PLCE shares are diving on Friday.
The company said it expects fourth-quarter net sales to be roughly $454 million to $456 million, versus its prior guidance of $460 million to $465 million and below the estimate of $462.88 million.
Adjusted operating loss for the quarter is expected at (9.0%) to (8.0%) of net sales, contrasting with prior guidance of 2% to 3% of adjusted operating margin.
The company projects to end the year in a clean inventory position, with inventory expected to be down 16% to 20% versus the prior year.
As of February 3, 2024, total liquidity is expected to be approximately $45 million (including approximately $13 million of cash and cash equivalents).
Total indebtedness is expected to decrease by more than $100 million versus the third quarter of fiscal 2023 and, as of February 3, 2024, is expected to be approximately $277 million as compared to $408 million as of the end of the third quarter of fiscal 2023.
The company ended the third quarter of 2023 with 591 stores and square footage of 2.8 million, a decrease of 9% compared to the prior year, it said in a press release dated November 16.
Price Action: PLCE shares are trading lower by 48% to $10.25 on the last check Friday.
Photo via Wikimedia Commons
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