Why The Children's Place Stock Just Crashed 52%
Shares of kids clothier The Children's Place (NASDAQ: PLCE) are getting spanked this morning, down 52.2% through 11:30 a.m. ET, after the company preannounced "preliminary, unaudited" financial results for its fiscal fourth quarter of 2023. While unofficial at this point and subject to revision, the news certainly doesn't look good.
Analysts were already expecting The Children's Place to report a weak quarter, with sales up only 1.5% year over year at $462.9 million. Management warned today, however, that it's probably actually going to report sales of no more than $456 million, and potentially as bad as $454 million.
And the bad news doesn't end there. Turning to earnings, analysts note that The Children's Place lost $3.87 per share in Q4 2022. They've been hoping that things turned around a bit in Q4 2023, however, and that the retail chain could report at least a non-GAAP (adjusted) profit of $0.22 per share.
Source Fool.com
