The Children's Place, Inc. (PLCE) AI Stock Analysis
PLCE AI stock analysis summary
AI ResearchThe Children's Place, Inc. is a retailer specializing in children's apparel and accessories across brands including Gymboree and Baby Place. Annual revenue fell from $1.92B in FY2022 to $1.21B in FY2026, leading to a net loss of -$88.3M. The company carries $622.5M in total debt against cash and short-term investments of $7.2M as of July 31, 2026.
- Market cap
- $23.8M
- Revenue (TTM)
- $1.13B
- P/E
- — fwd 12.9x
- 1Y return
- -86.0% S&P 500 16.8%
- Avg. target
- $3.25 203.7% vs last close
Bull case
- The mean analyst price target of $3.25 reflects potential upside of 203.7% from the last close of $1.07.
- Analyst forecasts project revenue to rebound by 4.8% to $1.13B in the fiscal year ending in 2028.
- Earnings estimates anticipate an EPS improvement of 53.6% next fiscal year to -$2.15 compared to -$4.65 in the current fiscal year.
Bear case
- Total debt reached $622.5M as of July 31, 2026, while cash and short-term investments stood at $7.2M.
- The balance sheet shows negative shareholders' equity of -$139.0M and a current ratio of 0.89 as of July 31, 2026.
- Revenue fell 18.9% and quarterly earnings fell 48.5% year-over-year in the quarter ending July 31, 2026.
What Children's Place does
The Children's Place, Inc. is a retailer specializing in children's apparel and accessories, operating through two segments: The Children's Place U.S. and The Children's Place International. Founded in 1969 and headquartered in Secaucus, New Jersey, the company sells apparel, footwear, accessories, and other items catering specifically to children. Its product lineup includes merchandise designed and manufactured under several proprietary brands such as The Children's Place, Place, Baby Place, Gymboree, and Sugar & Jade. The company serves customers domestically and internationally through its retail store network and an online shopping platform supported by a dedicated distribution network.
Growth and profitability
Revenue declined over consecutive fiscal years, moving from $1.92B in FY2022 to $1.71B in FY2023, $1.60B in FY2024, $1.39B in FY2025, and $1.21B in FY2026, producing a 5-year revenue CAGR of -4.5%. Gross margin stood at 27.2% in FY2026 compared to 38.5% in FY2022, while operating margin shifted from 14.8% to -4.3% over the same timeframe. Net income fell from $187.2M in FY2022 to -$88.3M in FY2026. For the latest quarter ending July 31, 2026, quarterly revenue fell 18.9% year-over-year, while quarterly earnings dropped 48.5% year-over-year.
Balance sheet and cash flow
As of July 31, 2026, the company held $7.2M in cash and short-term investments alongside $622.5M in total debt, resulting in net debt of $615.4M. Shareholders' equity was -$139.0M, and the current ratio was 0.89. In FY2026, operating cash flow generated $8.1M, while capital expenditures totaled $17.4M, producing free cash flow of -$9.3M. Capital deployment in FY2026 also included $422,000 allocated to share buybacks.
Valuation and performance
The stock closed at $1.07 on October 16, 2026, representing a market capitalization of $23.8M and an enterprise value of $664.4M. Its forward P/E of 12.9x sits below the 14.1x median of its US-listed Consumer Cyclical peers, while its EV-to-EBITDA of 28.2x is higher than the peer median of 11.1x. Over the past year, the stock dropped 86.0%, compared to a 16.8% gain for the S&P 500. Over five years, the stock fell 98.7% while the benchmark rose 83.0%.
What analysts expect
Analyst coverage consists of 1 Hold rating, with 0 Buy, 0 Strong Buy, 0 Sell, and 0 Strong Sell ratings. The mean price target is $3.25, which stands 203.7% above the last close of $1.07. For the fiscal year ending January 31, 2027, consensus estimates project an EPS of -$4.65 on revenue of $1.08B. For the subsequent fiscal year, 1 analyst projects revenue of $1.13B and an EPS of -$2.15. The company beat EPS expectations in 2 of the last 4 quarters.
Key risks and what to watch
- A negative operating margin of -4.5% over the trailing twelve months highlights ongoing pressure on core profitability.
- Short interest represents 39.2% of the float, indicating significant bearish positioning in the market.
- Free cash flow was -$9.3M in FY2026, limiting financial flexibility given cash reserves of $7.2M.
- The stock is down 73.1% year-to-date and trades 66.8% below its 200-day average.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this PLCE AI stock analysis
This page is an AI-written research summary of The Children's Place, Inc. (PLCE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: PLCE income statement, PLCE balance sheet, PLCE key metrics, PLCE analyst forecast, PLCE chart. See the PLCE stock overview for the latest quote and news.
PLCE AI stock analysis FAQ
Does The Children's Place pay a dividend?
The Children's Place does not pay a regular dividend. Capital uses in FY2026 included $17.4M in capital expenditures and $422,000 in share buybacks.
What is the debt position of The Children's Place?
As of July 31, 2026, total debt stood at $622.5M against cash and short-term investments of $7.2M, resulting in net debt of $615.4M. Shareholders' equity was -$139.0M.
What are analysts forecasting for PLCE earnings?
For the fiscal year ending January 31, 2027, the consensus forecast projects an EPS of -$4.65 on revenue of $1.08B. For the following fiscal year, 1 analyst expects an EPS of -$2.15 on revenue of $1.13B.
What is the analyst price target for PLCE?
The mean analyst price target is $3.25, which is 203.7% above the last close of $1.07 on October 16, 2026. The stock currently has 1 Hold rating and no Buy or Sell ratings.