The Children’s Place, a prominent kidswear retailer based in the US, has reported an 18.8 per cent decline in third-quarter sales, totaling US $ 390.2 million. The drop was attributed to reduced e-commerce revenue, fewer store locations, and sluggish consumer traffic. Comparable retail sales also fell by 17.1 per cent, as the company prioritized profitability over unprofitable sales.
Net income for the quarter ending November 2 decreased to US $ 20.8 million, down from US $ 38.5 million in the previous year. Fiscal year-to-date sales declined 14.8 per cent to US $ 977.7 million due to changes in promotional strategies, reduced marketing expenses, and adjustments to “free shipping” offers.
Interim CEO Muhammad Umair emphasised the company’s focus on profitability, stating, “We anticipated these strategic changes would impact topline sales, but our efforts have driven consistent gross profit margin improvements and reduced operating expenses.” He highlighted a US $ 9 million reduction in marketing and payroll costs, contributing to US $ 44.5 million in adjusted EBITDA for the quarter.
In October, The Children’s Place partnered with SHEIN, launching its collection on the global platform. While the collection is currently available in the US, a phased global rollout is planned, signaling potential future growth.
