Retailer Children's Place jumps as margin boosts Q2 profit

Children's Place

11/09/2024 13:32

** Shares of apparel retailer Children's Place  PLCE.O  up
more than 32% at $6.45 premarket 
    ** Company posts Q2 adjusted profit of 30 cents vs a loss of
$2.12 a year ago
    ** Reports gross margin rise of 960 basis points to 35%,
owing to lower expenses from reduced costs of cotton and supply
chain 
    ** PLCE's Q2 comparable retail sales decline 7.2%, hurt by
planned decrease in ecommerce revenue
    ** While we anticipated that efforts (to reduce excess
costs) would pressure sales, we drove significant improvements
in gross profit margin, interim CEO Muhammad Umair says
    ** So far, stock is down nearly 80% YTD

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))