Children's Place jumps on raising profit view for back half of 2023

Children's Place

17/08/2023 15:18

(Updates)
    ** Shares of apparel retailer Children's Place  PLCE.O  rise
as much as 17.8% to $31.23 in morning trade
    ** Company raises its profit forecast for back half of 2023,
citing easing input and supply chain costs as well as reduced
inventory levels
    ** Sees adjusted net earnings per diluted share to be
between $5 and $5.25/shr vs previous projection of $5/shr 
    ** However, PLCE slightly tightens the upper-end of FY 2023
outlook for revenue and profit 
    ** Q2 net sales falls 9.3% to $345.6 mln, but is above
company's forecast of sales between $340 mln-$345 mln provided
in May
    ** "May was our weakest month, June improved significantly
with the kickoff of our Back-to-School strategy and July was our
strongest month of the quarter," says CEO Jane Elfers
    ** Still, PLCE posts wider loss of $35.4 mln, or $2.82/shr,
in the quarter ended July 29, compared to $13.3 mln, or
$1.01/shr, a year ago 
    ** Including session moves, stock down 19.5% YTD

 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth;))