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The Children's Place (PLCE) Introduces a Sleepwear Brand

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The Children's Place, Inc. (PLCE - Free Report) is making concerted moves to deliver a seamless shopping experience. PLCE launched the PJ Place, the ultimate             sleepwear destination. This lifestyle brand targets millennials and Gen Z audiences, with a diverse team of entrepreneurs, celebrities and influencers.

The PJ Place women's and men's collections comprise plush pajama sets, fashion tees, loungewear, thermal sets, slippers, socks and a lot more. These are made of 'live in all day' fabrics with latest designs and styles, offering full comfort to customers.

Customers can now avail the PJ Place's collections exclusively on www.pjplace.com with price points spreading from $10.95 to $69.95. We note that PLCE has a leadership position in kids sleepwear, while its adult sleepwear business increased exponentially in the last few years. The new brand looks to strengthen PLCE’s relationship with young millennials and Gen Z customers, thus widening its customer base.

What’s More?

The Children's Place is steadily investing in its omnichannel capabilities as part of its Digital Transformation strategy. We note that digital sales represented 47% of total retail sales during the second quarter of fiscal 2022, with approximately 76% of the digital business coming through a mobile device.

Management launched a completely redesigned responsive site and mobile app for The Children's Place and Gymboree brands. It continued to develop state-of-the-art loyalty, pricing and promotional systems to facilitate the delivery of real-time customer personalization in the channels that customers select.

Management expects digital revenues to represent 50% of retail sales in fiscal 2022 and 60% of the same by the end of fiscal 2024. It intends to allocate a major portion of its fiscal 2022 capital expenditures to digital and supply-chain fulfillment initiatives.

However, this presently Zacks Rank #5 (Strong Sell) stock has lost 8.6% in the past three months, wider than the industry’s 3.1% fall. Cautious consumer behavior amid soaring inflation, increased promotional activity from key competitors and supply-chain issues are adversely impacting PLCE’s results. For fiscal 2022, management projected net sales to be approximately $1,725 million, suggesting a decline of 10% from $1,915.4 million reported in fiscal 2021. PLCE envisioned adjusted earnings of approximately $7 per share for fiscal 2022, indicating a decline from earnings of $13.40 reported in fiscal 2021.

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