Childrens Place | 10-Q: FY2026 Q2 Revenue Beats Estimate at USD 298.01 M

Revenue: As of FY2026 Q2, the actual value is USD 298.01 M, beating the estimate of USD 289.58 M.

EPS: As of FY2026 Q2, the actual value is USD -0.24, missing the estimate of USD -0.1001.

EBIT: As of FY2026 Q2, the actual value is USD 4.106 M.

The Children’s Place U.S. Segment

Net Sales: $273.2 million for the thirteen weeks ended August 2, 2025, compared to $292.4 million for the same period in 2024. $495.0 million for the twenty-six weeks ended August 2, 2025, compared to $538.6 million for the same period in 2024.
Operating Income (Loss): $6.3 million for the thirteen weeks ended August 2, 2025, compared to - $19.7 million for the same period in 2024. - $13.4 million for the twenty-six weeks ended August 2, 2025, compared to - $43.7 million for the same period in 2024.
Operating Margin: 2.3% for the thirteen weeks ended August 2, 2025, compared to -6.7% for the same period in 2024. -2.7% for the twenty-six weeks ended August 2, 2025, compared to -8.1% for the same period in 2024.

The Children’s Place International Segment

Net Sales: $24.8 million for the thirteen weeks ended August 2, 2025, compared to $27.3 million for the same period in 2024. $45.2 million for the twenty-six weeks ended August 2, 2025, compared to $49.0 million for the same period in 2024.
Operating Income (Loss): - $2.2 million for the thirteen weeks ended August 2, 2025, compared to - $2.1 million for the same period in 2024. - $6.6 million for the twenty-six weeks ended August 2, 2025, compared to - $6.1 million for the same period in 2024.
Operating Margin: -8.8% for the thirteen weeks ended August 2, 2025, compared to -7.7% for the same period in 2024. -14.6% for the twenty-six weeks ended August 2, 2025, compared to -12.5% for the same period in 2024.

Consolidated Metrics

Net Sales: $298.0 million for the thirteen weeks ended August 2, 2025, compared to $319.7 million for the same period in 2024. $540.1 million for the twenty-six weeks ended August 2, 2025, compared to $587.5 million for the same period in 2024.
Gross Profit: $101.3 million for the thirteen weeks ended August 2, 2025, compared to $111.8 million for the same period in 2024. $172.1 million for the twenty-six weeks ended August 2, 2025, compared to $204.5 million for the same period in 2024.
Gross Margin: 34.0% for the thirteen weeks ended August 2, 2025, compared to 35.0% for the same period in 2024. 31.9% for the twenty-six weeks ended August 2, 2025, compared to 34.8% for the same period in 2024.
Selling, General, and Administrative Expenses: $89.6 million for the thirteen weeks ended August 2, 2025, compared to $96.1 million for the same period in 2024. $176.3 million for the twenty-six weeks ended August 2, 2025, compared to $205.2 million for the same period in 2024.
Depreciation and Amortization: $7.6 million for the thirteen weeks ended August 2, 2025, compared to $9.5 million for the same period in 2024. $15.8 million for the twenty-six weeks ended August 2, 2025, compared to $21.1 million for the same period in 2024.
Operating Income (Loss): $4.1 million for the thirteen weeks ended August 2, 2025, compared to - $21.8 million for the same period in 2024. - $20.0 million for the twenty-six weeks ended August 2, 2025, compared to - $49.8 million for the same period in 2024.
Net Loss: - $5.4 million for the thirteen weeks ended August 2, 2025, compared to - $32.1 million for the same period in 2024. - $39.4 million for the twenty-six weeks ended August 2, 2025, compared to - $69.9 million for the same period in 2024.

Cash Flow

Operating Cash Flow: - $73.4 million for the twenty-six weeks ended August 2, 2025, compared to - $194.7 million for the same period in 2024.
Investing Cash Flow: - $4.8 million for the twenty-six weeks ended August 2, 2025, compared to - $12.5 million for the same period in 2024.
Financing Cash Flow: $77.8 million for the twenty-six weeks ended August 2, 2025, compared to $203.7 million for the same period in 2024.

Future Outlook and Strategy

Core Business Focus: The company plans to implement a long-range plan to streamline operations, yielding over $40 million of benefits over the next three years. This includes reducing corporate office costs, optimizing the distribution network, and right-sizing non-merchandise and third-party spend. The transformation efforts are expected to incur one-time costs of approximately $5 million to $10 million.