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Children's Place Unveils Store Plans for South East Asia

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One of the leading children’s apparel retailers, The Children's Place, Inc. (PLCE - Free Report) recently unveiled its store expansion plan for South East Asia, wherein it has entered into a development agreement with Gill Capital. The company first plans to open 25 locations in Indonesia and then may extend its wings gradually in Singapore, Thailand and The Philippines.

As of Apr 29, 2017, Children's Place operated 1,033 stores in the U.S., Canada and Puerto Rico. In fact, the company had shut down seven stores and introduced one store in the last quarter. Further, its international franchise partners opened six points of distribution, thus making a total of 156 international points of distribution at the end of the first quarter of fiscal 2017.

Looking forward, Children's Place is likely to establish more than 300 points of distribution by 2020 end. The company is expected to achieve this growth via the help of its existing partners coupled with striding footprint in new geographic regions. In addition, management focuses on new product strategies, along with the growth of the recently launched business in China.

We believe this agreement with Gill Capital is likely to enhance the company’s offerings with great fashion and quality, alongside maximizing its customers’ value.

Children's Place, which currently sports a Zacks Rank #1 (Strong Buy) has outperformed both the Zacks categorized Retail – Apparel/Shoe industry and the broader sector in the last year. The stock surged 40.6% against the industry’s decline of 15.8%. Meanwhile, the Zacks categorized Retail-Wholesale sector gained 15.7%. Furthermore, the stock boasts a VGM Score of ‘A’, with a long-term earnings growth rate of 8%.



Notably, the stock’s tremendous performance on the bourses is due to the robust earnings surprise history of Children's Place. We note that its earnings have outpaced the Zacks Consensus Estimate in 18 of the last 21 quarters. Moreover, its sales have exceeded the consensus mark in six consecutive quarters.

Other Stocks You May Consider

Some other favorably ranked stocks in the broader Retail-Wholesale sector include J.Jill, Inc. (JILL - Free Report) , Best Buy Co., Inc. (BBY - Free Report) and Canada Goose Holdings Inc. (GOOS - Free Report) .

J.Jill, Inc. has a long-term earnings growth rate of 19.8% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Best Buy is also a Zacks Rank #1 company and has a long-term earnings growth rate of 11.8%. Also, its earnings have outpaced the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 33.8%.

Canada Goose Holdings carries a Zacks Rank #2 (Buy) and has a long-term earnings growth rate of 32.8%.

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