Children’s Place Inc. PLCE, -10.42% shares slumped 13.2% in Thursday premarket trading after it reported first-quarter earnings and sales that missed expectations and cut its outlook. The kids apparel retailer posted net income of $19.8 million, or $1.43 per share, down from $45.2 million, or $3.01 per share, last year. Adjusted EPS of $1.05 missed the FactSet consensus for $1.43. Sales of $362.4 million were down from $435.5 million and also missed the FactSet consensus for $400.4 million. Comparable sales fell 16.9%. “Our Q1 results were negatively impacted by several factors, the largest being lapping the unprecedented stimulus released into the economy in March of 2021,” said Chief Executive Jane Elfers in a statement. March sales were down 35%. “We also believe that the combination of the unseasonably cold weather that lasted through the end of the quarter in most of our key markets, and the unprecedented levels of inflation, particularly with respect to gasoline and food prices, negatively impacted our Q1 results.” The company’s Gymboree merchandise will be coming to Amazon.com Inc. AMZN, -7.16% in July. For the year, the company now expects a mid-single digit sales decline. The FactSet consensus is for sales of $1.9 billion, suggesting a 0.8% drop. Children’s Place stock is down 45.5% for the year to date.
