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Factors to Influence Children's Place's (PLCE) Q3 Earnings
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The Children's Place, Inc. (PLCE - Free Report) is likely to witness a decline in the top and bottom lines when it reports third-quarter fiscal 2022 numbers on Nov 17, before market open. The Zacks Consensus Estimate for revenues is pegged at $500.5 million, suggesting a decline of 10.3% from the prior-year reported figure.
The Zacks Consensus Estimate for quarterly earnings per share has been unchanged at $3.97 over the past 30 days. It suggests a sharp decline of 27% from $5.43 reported in the year-ago period.
In the last reported quarter, the children's specialty apparel retailer delivered a negative earnings surprise of 230.9%. Also, it delivered a negative earnings surprise of 60.2%, on average, in the trailing four quarters.
The Children’s Place has been grappling with soft consumer demand due to unprecedented inflation, increased promotional activity from key competitors and supply-chain issues. This, along with higher inbound transportation costs and elevated marketing spend, is expected to have dented the fiscal third-quarter performance.
On its last reported quarter’s earnings call, management expected third-quarter fiscal 2022 net sales of $500 million, suggesting a decline from the $558.2 million reported in the year-ago period. The company anticipated a low-double-digit decline in comparable retail sales. It projected adjusted operating income to be 14% of net sales, indicating a decline from 20.9% reported in the last year. The company envisioned fiscal third-quarter adjusted earnings of $3.95 per share, implying a dip from $5.43 per share reported in the prior-year quarter.
Despite the aforementioned headwinds, the company has been making efforts to get back on track by strengthening its customer base, increasing brand awareness, offering superior products, with a strong value proposition, and enhancing digital penetration.
Also, investments to upgrade its omni-channel capabilities as part of its Digital Transformation strategy bode well. Some notable efforts in this space include BOPIS (Buy Online, Pick Up in Store), Save the Sales and Ship from Store, mobile POS, everyday free shipping with no minimum purchase, BOSS (Buy Online, Ship to Store), and Afterpay services.
PLCE has been accelerating its fleet optimization initiative, augmenting the supply chain and concentrating on improving financial flexibility. It has also been focusing on brand marketing and personalization to attract millennial customers.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for The Children's Place this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +3.13% and a Zacks Rank of 3. The company is likely to register top and bottom-line declines when it reports third-quarter fiscal 2022 results. The consensus mark for ROST’s quarterly revenues is pegged at $4.36 billion, which suggests a decline of 4.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Ross Stores’ earnings has moved up by a penny to 81 per share in the past seven days. However, the consensus estimate indicates a 25.7% decline from the $1.09 reported in the year-ago quarter.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +17.23% and a Zacks Rank of 3. The company is likely to register declines in the top and bottom lines when it reports third-quarter fiscal 2022 numbers. The consensus mark for DKS’ quarterly earnings has moved up 1.4% in the past 30 days to $2.24 per share. However, the consensus estimate suggests a 29.8% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for DICK'S quarterly revenues is pegged at $2.7 billion, which suggests a decline of 1.7% from the figure reported in the prior-year quarter.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +6.57% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports third-quarter fiscal 2022 results. The consensus mark for DLTR’s quarterly revenues is pegged at $6.83 billion, which suggests 6.5% growth from the figure reported in the prior-year quarter.
The consensus mark for DLTR’s quarterly earnings has been unchanged in the past 30 days at $1.16 per share. The consensus estimate suggests growth of 20.8% from the year-ago quarter.
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Factors to Influence Children's Place's (PLCE) Q3 Earnings
The Children's Place, Inc. (PLCE - Free Report) is likely to witness a decline in the top and bottom lines when it reports third-quarter fiscal 2022 numbers on Nov 17, before market open. The Zacks Consensus Estimate for revenues is pegged at $500.5 million, suggesting a decline of 10.3% from the prior-year reported figure.
The Zacks Consensus Estimate for quarterly earnings per share has been unchanged at $3.97 over the past 30 days. It suggests a sharp decline of 27% from $5.43 reported in the year-ago period.
In the last reported quarter, the children's specialty apparel retailer delivered a negative earnings surprise of 230.9%. Also, it delivered a negative earnings surprise of 60.2%, on average, in the trailing four quarters.
The Children's Place, Inc. Price and EPS Surprise
The Children's Place, Inc. price-eps-surprise | The Children's Place, Inc. Quote
Key Factors to Note
The Children’s Place has been grappling with soft consumer demand due to unprecedented inflation, increased promotional activity from key competitors and supply-chain issues. This, along with higher inbound transportation costs and elevated marketing spend, is expected to have dented the fiscal third-quarter performance.
On its last reported quarter’s earnings call, management expected third-quarter fiscal 2022 net sales of $500 million, suggesting a decline from the $558.2 million reported in the year-ago period. The company anticipated a low-double-digit decline in comparable retail sales. It projected adjusted operating income to be 14% of net sales, indicating a decline from 20.9% reported in the last year. The company envisioned fiscal third-quarter adjusted earnings of $3.95 per share, implying a dip from $5.43 per share reported in the prior-year quarter.
Despite the aforementioned headwinds, the company has been making efforts to get back on track by strengthening its customer base, increasing brand awareness, offering superior products, with a strong value proposition, and enhancing digital penetration.
Also, investments to upgrade its omni-channel capabilities as part of its Digital Transformation strategy bode well. Some notable efforts in this space include BOPIS (Buy Online, Pick Up in Store), Save the Sales and Ship from Store, mobile POS, everyday free shipping with no minimum purchase, BOSS (Buy Online, Ship to Store), and Afterpay services.
PLCE has been accelerating its fleet optimization initiative, augmenting the supply chain and concentrating on improving financial flexibility. It has also been focusing on brand marketing and personalization to attract millennial customers.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for The Children's Place this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Children's Place has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 Stocks With Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +3.13% and a Zacks Rank of 3. The company is likely to register top and bottom-line declines when it reports third-quarter fiscal 2022 results. The consensus mark for ROST’s quarterly revenues is pegged at $4.36 billion, which suggests a decline of 4.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Ross Stores’ earnings has moved up by a penny to 81 per share in the past seven days. However, the consensus estimate indicates a 25.7% decline from the $1.09 reported in the year-ago quarter.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +17.23% and a Zacks Rank of 3. The company is likely to register declines in the top and bottom lines when it reports third-quarter fiscal 2022 numbers. The consensus mark for DKS’ quarterly earnings has moved up 1.4% in the past 30 days to $2.24 per share. However, the consensus estimate suggests a 29.8% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for DICK'S quarterly revenues is pegged at $2.7 billion, which suggests a decline of 1.7% from the figure reported in the prior-year quarter.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +6.57% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports third-quarter fiscal 2022 results. The consensus mark for DLTR’s quarterly revenues is pegged at $6.83 billion, which suggests 6.5% growth from the figure reported in the prior-year quarter.
The consensus mark for DLTR’s quarterly earnings has been unchanged in the past 30 days at $1.16 per share. The consensus estimate suggests growth of 20.8% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.