Children's Place tanks to 21-yr low on operating loss forecast; considers new financing

Children's Place

09/02/2024 14:52

(Updates)
    ** Shares of apparel retailer Children's Place  PLCE.O 
plunge as much as 54% to $9.15 - its lowest level since Apr.
2003
    ** Expects Q4 adj. operating loss compared with prior
forecast of adj. operating profit
    ** Co expects net sales in the range of $454 mln to $456 mln
vs. prior range of $460 mln to $465 mln
    ** If losses hold, stock is set for its worst day on record
    ** Says loss due to lower-than-expected merchandise margin
resulting from more aggressive promotions in an effort to
maximize sales
    ** Adds, working with its advisors and lenders to obtain new
financing to support operations, and is considering strategic
alternatives in the event co unable to get new financing
    ** In 2023, stock fell nearly 36%
    

 (Reporting by Anuja Bharat Mistry in Bengaluru)
 ((AnujaBharat.Mistry@thomsonreuters.com))