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What's in Store for The Children's Place (PLCE) in Q1 Earnings?
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The Children's Place, Inc. (PLCE - Free Report) is likely to register top-line growth when it reports first-quarter fiscal 2021 numbers on May 20, before market open. The Zacks Consensus Estimate for revenues is pegged at $349.2 million, suggesting a rise of 36.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line is pegged at a loss of 4 cents per share. The consensus mark has remained stable in the past 30 days. In the year-ago quarter, the company posted a loss of $1.96. Notably, this children’s specialty apparel retailer has a trailing four-quarter earnings surprise of 217.2%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a wide margin.
Key Factors to Note
On its last earnings call, management highlighted that the company’s net sales, in the first quarter, are likely to rise on a year on year basis. Top line performance is likely to have been supported by growth in the digital arena, efficient customer engagement strategies as well as efforts to expand globally.
Speaking of the digital platform, The Children's Place has continued to gain from investments to upgrade omni-channel capabilities. As part of its Digital Transformation strategy, the company has been making investments to enhance capabilities such as Buy Online Pick Up in Store, Save the Sales and Ship from Store, among others. The company’s efficient omni-channel offerings have also led to enhanced app downloads, thereby enabling greater customer acquisition. Such upsides are likely to have continued during the first quarter. Apart from these, the company’s efforts to strengthen supply chain as well as its fleet optimization initiatives are encouraging.
However, we cannot ignore the concerns surrounding rising expenses that might have put some pressure on margins. The company has been incurring higher costs in relation to elevated e-commerce penetration as well as increased fulfillment costs, including higher freight charges. Also, any deleverage in SG&A expenses are likely to have acted as a headwind.
The Childrens Place, Inc. Price, Consensus and EPS Surprise
Our proven model does not conclusively predict a beat for The Children's Place this earnings season. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Children's Place has a Zacks Rank #1 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Best Buy Co., Inc. (BBY - Free Report) currently has an Earnings ESP of +10.48% and carries a Zacks Rank #3.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +3.12% and a Zacks Rank #3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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What's in Store for The Children's Place (PLCE) in Q1 Earnings?
The Children's Place, Inc. (PLCE - Free Report) is likely to register top-line growth when it reports first-quarter fiscal 2021 numbers on May 20, before market open. The Zacks Consensus Estimate for revenues is pegged at $349.2 million, suggesting a rise of 36.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line is pegged at a loss of 4 cents per share. The consensus mark has remained stable in the past 30 days. In the year-ago quarter, the company posted a loss of $1.96. Notably, this children’s specialty apparel retailer has a trailing four-quarter earnings surprise of 217.2%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a wide margin.
Key Factors to Note
On its last earnings call, management highlighted that the company’s net sales, in the first quarter, are likely to rise on a year on year basis. Top line performance is likely to have been supported by growth in the digital arena, efficient customer engagement strategies as well as efforts to expand globally.
Speaking of the digital platform, The Children's Place has continued to gain from investments to upgrade omni-channel capabilities. As part of its Digital Transformation strategy, the company has been making investments to enhance capabilities such as Buy Online Pick Up in Store, Save the Sales and Ship from Store, among others. The company’s efficient omni-channel offerings have also led to enhanced app downloads, thereby enabling greater customer acquisition. Such upsides are likely to have continued during the first quarter. Apart from these, the company’s efforts to strengthen supply chain as well as its fleet optimization initiatives are encouraging.
However, we cannot ignore the concerns surrounding rising expenses that might have put some pressure on margins. The company has been incurring higher costs in relation to elevated e-commerce penetration as well as increased fulfillment costs, including higher freight charges. Also, any deleverage in SG&A expenses are likely to have acted as a headwind.
The Childrens Place, Inc. Price, Consensus and EPS Surprise
The Childrens Place, Inc. price-consensus-eps-surprise-chart | The Childrens Place, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict a beat for The Children's Place this earnings season. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Children's Place has a Zacks Rank #1 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Burlington Stores, Inc. (BURL - Free Report) currently has an Earnings ESP of +7.86% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Best Buy Co., Inc. (BBY - Free Report) currently has an Earnings ESP of +10.48% and carries a Zacks Rank #3.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +3.12% and a Zacks Rank #3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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