Children's Place Posts Mixed Q3 Results, Plans New $250M Stock Buyback - Children's Place (NASDAQ:PLCE)

Children's Place Inc PLCE reported third-quarter FY21 sales growth of 31.2% year-on-year, to $558.23 million, missing the analyst consensus of $566.42 million. Comparable retail sales were 36.2% for the quarter.
The gross profit increased 67.6 Y/Y to $244.8 million, with the margin expanding 953 basis points to 43.8%. Adjusted gross margin expanded 868 basis points to 43.9%.
Operating income for the quarter jumped nearly five-fold to $113.8 million. Adjusted operating margin extended 1,349 basis points to 20.9%.
Adjusted EPS of $5.43 beat the analyst consensus of $4.40.
The company held $67.1 million in cash and equivalents as of October 30, 2021.
"While we are only a few weeks in, Q4 is off to a very strong start. We continue to operate at a high level, while navigating the ever-changing COVID landscape. We remain firmly on offense and we look forward to continuing to deliver accelerated operating margin expansion for 2021 and beyond," said CEO Jane Elfers.
Children's Place is not providing EPS guidance citing continued uncertainty created by the COVID-19 pandemic.
Children's Place's board approved an additional share repurchase for up to $250 million of stock. The company had $48 million authorization remaining at Q3-end.
Children's Place also announced refinancing of its revolving credit facility and term loan by a new lending group.
Price Action: PLCE shares are trading higher by 4.94% at $109.71 on the last check Thursday.