Read How Children's Place Fared In Q1 - Children's Place (NASDAQ:PLCE)

Children's Place Inc PLCE reported a first-quarter FY22 sales decline of 16.8% year-on-year to $362.35 million, missing the consensus of $401.59 million.
The gross profit decreased 24.6% Y/Y to $141.9 million, with the margin contracting 400 basis points to 39.2%. Adjusted gross margin contracted 429 basis points to 39.2%.
Operating income for the quarter declined 70.7% to $19.3 million. Adjusted operating margin contracted 1,057 basis points to 5.7%.
Adjusted EPS of $1.05 missed the analyst consensus of $1.46.
The company held $58.5 million in cash and equivalents as of April 30, 2022.
"Our Q1 results were negatively impacted by several factors, the largest being lapping the unprecedented stimulus released into the economy in March of 2021," said CEO Jane Elfers.
Due to persistently high inflation levels and the lack of visibility into its impact on the balance of the year, the company tempered its top-line expectation for 2022 and plans for a mid-single-digit decline in sales.
Meanwhile, the company said it remains focused on delivering double-digit operating margin and double-digit EPS for 2022 and beyond.
Starting this July, Amazon.Com, Inc AMZN will launch the company's Gymboree brand on its website. The company expects to reach a significantly larger customer base and build upon the Gymboree momentum in 2022 and beyond.
Price Action: PLCE shares are trading higher by 9.55% at $47.35 on the last check Thursday.