The Children’s Place is facing a tough situation in the current retail environment with heavy competition and slow traffic. Comp sales have been seeing pressure and it is likely to see a drop for this quarter too. Keeping in line with the ongoing retail trends, the company is investing significantly in its digital channels and expects revenues from these channels to increase meaningfully over the next two years.
The New Jersey-based company is looking to strengthen its position in the US as well as broaden its reach internationally. As part of its fleet optimization initiative, the retailer closed 12 stores last quarter. Overall, The Children’s Place is likely to see a dip in profits and comp sales in the second quarter and the pressure on margins might continue for some more time going forward.
The stock, which is down about 5% so far this year, was slightly up by 0.55% to $137.50 when the market closed today.