The Children's Place, Inc. operates as a children's specialty apparel retailer in North America. It operates through two segments, The Children's Place U.S. and The Children's Place International. The company offers apparel, footwear, accessories, and other items for children and tweens; and designs, contracts to manufacture, and sells merchandise under the proprietary The Children's Place, Place, Baby Place, Gymboree, Sugar & Jade, and PJ Place brand names. It operates through online stores at childrensplace.com, gymboree.com, sugarandjade.com, and www.pjplace.com; international franchise partners; and retail stores in the United States, Canada, and Puerto Rico. The company was formerly known as The Children's Place Retail Stores, Inc. and changed its name to The Children's Place, Inc. in June 2014. The Children's Place, Inc. was founded in 1969 and is headquartered in Secaucus, New Jersey.

Children's Place, Inc. (The)

In trading on Tuesday, general contractors & builders shares were relative leaders, up on the day by about 6.8%. Leading the group were shares of Horton, up about 13.9% and shares of LGI Homes up about 9.5% on the day.
Also showing relative strength are apparel stores shares, up on the day by about 3.1% as a group, led by Children's Place, trading higher by about 18.9% and The RealReal, trading up by about 10.9% on Tuesday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tuesday Sector Leaders: General Contractors & Builders, Apparel Stores

In trading on Wednesday, biotechnology shares were relative leaders, up on the day by about 3.5%. Leading the group were shares of CervoMed, up about 21.2% and shares of Gyre Therapeutics up about 17% on the day.
Also showing relative strength are apparel stores shares, up on the day by about 2.6% as a group, led by Duluth Holdings, trading higher by about 9.6% and Children's Place, trading up by about 8% on Wednesday.
VIDEO: Wednesday Sector Leaders: Biotechnology, Apparel Stores
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wednesday Sector Leaders: Biotechnology, Apparel Stores

In trading on Monday, insurance brokers shares were relative laggards, down on the day by about 3.8%. Helping drag down the group were shares of Heritage Insurance Holdings, off about 24.4% and shares of Universal Insurance Holdings down about 20.6% on the day.
Also lagging the market Monday are apparel stores shares, down on the day by about 2.4% as a group, led down by Torrid Holdings, trading lower by about 10.7% and Children's Place, trading lower by about 6.7%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Monday Sector Laggards: Insurance Brokers, Apparel Stores

In trading on Tuesday, apparel stores shares were relative laggards, down on the day by about 3%. Helping drag down the group were shares of Children's Place, off about 9.9% and shares of Stitch Fix off about 7.9% on the day.
Also lagging the market Tuesday are semiconductors shares, down on the day by about 3% as a group, led down by FTC Solar, trading lower by about 10% and MaxLinear, trading lower by about 9.3%.
VIDEO: Tuesday Sector Laggards: Apparel Stores, Semiconductors
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tuesday Sector Laggards: Apparel Stores, Semiconductors

In trading on Tuesday, apparel stores shares were relative leaders, up on the day by about 3.3%. Leading the group were shares of Children's Place, up about 22.7% and shares of Designer Brands up about 9.3% on the day.
Also showing relative strength are home furnishings & improvement shares, up on the day by about 2.8% as a group, led by Sleep Number, trading higher by about 12.8% and GrowGeneration, trading up by about 7.4% on Tuesday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tuesday Sector Leaders: Apparel Stores, Home Furnishings & Improvement Stocks

Below is Validea's guru fundamental report for CHILDREN'S PLACE INC (PLCE). Of the 22 guru strategies we follow, PLCE rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown.
CHILDREN'S PLACE INC (PLCE) is a small-cap value stock in the Retail (Apparel) industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of CHILDREN'S PLACE INC
PLCE Guru Analysis
PLCE Fundamental Analysis
More Information on Meb Faber
Meb Faber Portfolio
About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PLCE Quantitative Stock Analysis

Tilly's (TLYS) came out with a quarterly loss of $0.48 per share versus the Zacks Consensus Estimate of a loss of $0.46. This compares to loss of $0.40 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -4.35%. A quarter ago, it was expected that this clothing and accessories retailer would post a loss of $0.22 per share when it actually produced a loss of $0.17, delivering a surprise of 22.73%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Tilly's, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $115.86 million for the quarter ended April 2024, surpassing the Zacks Consensus Estimate by 0.25%. This compares to year-ago revenues of $123.64 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Tilly's shares have lost about 24.1% since the beginning of the year versus the S&P 500's gain of 12.3%.
What's Next for Tilly's?
While Tilly's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Tilly's: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.01 on $161.78 million in revenues for the coming quarter and -$0.60 on $613.12 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, The Children's Place (PLCE), has yet to report results for the quarter ended April 2024.
This children's clothing and accessories chain is expected to post quarterly loss of $0.88 per share in its upcoming report, which represents a year-over-year change of +56%. The consensus EPS estimate for the quarter has been revised 1.9% higher over the last 30 days to the current level.
The Children's Place's revenues are expected to be $308.21 million, down 4.2% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tilly's (TLYS) Reports Q1 Loss, Tops Revenue Estimates

News & Insights

In trading on Tuesday, apparel stores shares were relative leaders, up on the day by about 1.9%. Leading the group were shares of Lulu's Fashion Lounge Holdings, up about 17% and shares of Children's Place up about 12.9% on the day.
Also showing relative strength are rental, leasing, & royalty shares, up on the day by about 1.8% as a group, led by Dorchester Minerals, trading up by about 4.5% and San Juan Basin Royalty Trust, trading higher by about 4.2% on Tuesday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tuesday Sector Leaders: Apparel Stores, Rental, Leasing, & Royalty Stocks

The one thing I’ve learned writing about stocks for nearly 20 years is that class action lawsuits should not scare you away from a stock. They’re as common in America as the common cold.
In Monday’s trading, Sonder Holdings (SOND) finished the day ranked 100th in Barchart’s Bottom 100 stocks to buy. On Tuesdays, I write about companies in the top or bottom 100.
Sonder caught my eye for two reasons.
First, it moved down 25 spots yesterday from 75th on Friday. Its weighted alpha was -73.88, which means its recent returns haven’t been all that good. On the bright side, the move to 100th indicates the losses have slowed. It could soon leave the rankings.
Secondly, its stock is up 34% year-to-date, well off its 52-week low of $2.33 in mid-January. While it could mean you’ve already missed the boat and will likely fall back into the $2s, it could also mean it will gradually move out of penny-stock status toward $10 in the months ahead.
A small wager could be a moneymaker if you're an aggressive investor. Here’s why.
Who Is Sonder Holdings and Why Should You Care?
On the surface, Sonder is a poor version of Airbnb (ABNB).
Originally called Flatbook, the company's investor relations website states, “Sonder provides a variety of accommodation options—from spacious rooms to fully-equipped suites and apartments—found in over 40 markets spanning ten countries and three continents.”
Officially founded in 2014 by Francis Davidson while he was attending college in Montreal, an article from CNBC in 2021 first caught my attention about Davidson and his company. It didn’t hurt that Jeff Bezos backed the company.
Davidson started by renting out his three-bedroom apartment, which he shared with other McGill University students for the summer of 2012. He and his roommates netted over $9,000 from subletting his apartment. He started doing that for other McGill students and then expanded to doing the same in different cities.
That alone would have been a lucrative business. After all, students go home for the summer but still have their apartments to rent out before they go. Davidson handled that for them. Businesses that make or save people money and time will always do well.
As a result, Davidson dropped out to build the business full-time with his partner, Lucas Pellan.
The IPO and Beyond
Fast-forward to January 2022. The company completes its merger with Gores Metropoulos II, a special purpose acquisition company (SPAC). By this time, Pellan had left the company.
A couple of months later, Sonder reported Q4 2022 and full-year results. In Q4 2023, its revenues were $135 million, 56% higher than a year earlier. Its RevPAR (revenue per available room) was $158, 11% higher year-over-year. However, it had an operating loss of $59 million. For the year, its revenue was $461 million, nearly double its 2021 result. Its operating loss was $284 million, 9% higher than in 2021.
It was still in expansion mode, so an operating loss isn’t unusual. For example, Airbnb didn’t start making GAAP operating profits until 2021. Despite the fall in its share price, its stock remained well above $30 through 2022 and into 2023.
As of last November's release of its Q3 2023 results, the business and its financials seemed to be in good shape.
“A year ago, for every dollar of revenue generated, Sonder burned 31 cents. Twelve months later, that figure has dropped to 10 cents as revenue has grown 29%, Davidson stated in its Q3 2023 shareholder letter.
“The progress we've made over the last quarter is attributable to cost discipline -- every expense has been scrutinized for its ROI, and every department has been successful at delivering operating efficiencies.”
For the nine months ended September 30, 2023, it generated an operating loss of $184 million from $439 million in revenue. Meanwhile, while its revenue increased by 29%, its operating expenses rose by a smaller 13%. It still seemed to be heading in the right direction.
The Financial Restatements Begin
The day before Sonder released its Q3 2023 results, its shares still traded above $8. Then, on March 15, it announced that it would delay its Q4 2023 results due to accounting errors in its 2022 and 2023 results.
“The Company recently identified accounting errors related to the valuation and impairment of operating lease right of use assets and related items for the fiscal years 2022 and 2023,” its press release stated.
While its revenues will still grow by nearly 31% in 2023, its net loss will be more significant, perhaps more extensive. Hence, the class action rhetoric.
I’ve never understood why someone would invest in a company that’s losing money -- GAAP and non-GAAP -- and sue because they were somehow fraudulently misled. Investors in Sonder knew the situation wasn’t perfect. To claim Sonder management misled you seems farfetched.
But class action lawyers have to be suing. That’s how they make money.
An interesting aside. An April 22, 2024, press release from Pomerantz Law Firm soliciting Class Action plaintiffs stated the following:
“You have until June 10, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired The Children's Place securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.”
The law firm forgot to replace The Children’s Place (PLCE) with Sonder Holdings. But I digress.
The Bottom Line on Sonder
Here’s the deal. Airbnb trades at 10.5x sales. When it first went public in 2020 and lost money, it traded at 21x sales. At the same multiple, and excluding the restatements, Sonder would be valued at $12.7 billion. Cut that in half; it’s still in the billions, not $48 million.
Here’s a play: Sonder’s June 21 $7.50 call (59 days to expiration) had an ask price of $0.20 in Monday trading. That’s a down payment of 1.7%. I have larger Starbucks orders than that.
This seems like a reasonably low-risk proposition if you're an aggressive investor.
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On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.