plce-20220430

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2022


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number 0-23071

THE CHILDREN’S PLACE, INC.

(Exact name of registrant as specified in its charter)


Delaware						31-1241495
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification Number)

500 Plaza Drive
Secaucus, New Jersey						07094
(Address of principal executive offices)						(Zip Code)

(201) 558-2400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class:	Trading Symbol:	Name of each exchange on which registered:
Common Stock, $0.10 par value	PLCE	Nasdaq Global Select Market

___________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date: Common Stock, par value $0.10 per share, outstanding at May 26, 2022: 13,173,854.

Table of Contents

THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD ENDED APRIL 30, 2022

TABLE OF CONTENTS


PART I — FINANCIAL INFORMATION		PAGE

Item 1.	F inancial S tatements.
	Consolidated Balance Sheets as of April 30, 2022, January 29, 2022, and May 1, 2021	1
	Consolidated Statements of Operations for the thirteen weeks ended April 30, 2022 and May 1, 2021	2
	Consolidated Statements of Comprehensive Income for the thirteen weeks ended April 30, 2022 and May 1, 2021	3
	Consolidated Statements of Changes in Stockholders’ Equity for the thirteen weeks ended April 30, 2022 and May 1, 2021	4
	Consolidated Statements of Cash Flows for the thirteen weeks ended April 30, 2022 and May 1, 2021	5
	Notes to C onsolidated F inancial S tatements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	17
Item 3.	Quantitative and Qualitative Disclosures A bout Market Risk.	24
Item 4.	Controls and Procedures.	25

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings.	26
Item 1A.	Risk Factors.	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	26
Item 6.	Exhibits.	27

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS.

THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	April 30, 2022		January 29, 2022		May 1, 2021
	(unaudited)				(unaudited)
	(in thousands, except par value)
ASSETS
Current assets:
Cash and cash equivalents	$	58,494	$	54,787	$	65,376

Accounts receivable	28,812		21,863		42,619
Inventories	549,167		428,813		417,808
Prepaid expenses and other current assets	50,990		76,075		50,594

Total current assets	687,463		581,538		576,397
Long-term assets:
Property and equipment, net	157,033		155,006		172,090
Right-of-use assets	191,559		194,653		260,919
Tradenames, net	71,492		71,692		72,292
Deferred income taxes	24,568		23,109		37,433
Other assets	12,911		11,462		8,536
Total assets	$	1,145,026	$	1,037,460	$	1,127,667

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Revolving loan	$	249,544	$	175,318	$	196,893

Accounts payable	260,634		183,758		228,149
Current portion of operating lease liabilities	89,566		91,097		129,070
Income taxes payable	6,001		10,984		6,418
Accrued expenses and other current liabilities	111,926		130,669		112,904
Total current liabilities	717,671		591,826		673,434
Long-term liabilities:

Long-term debt	49,702		49,685		74,526
Long-term portion of operating lease liabilities	129,111		134,761		195,435
Income taxes payable	18,929		14,939		14,939
Other tax liabilities	2,316		8,689		6,323
Other long-term liabilities	13,613		12,088		18,000
Total liabilities	931,342		811,988		982,657
Commitments and contingencies (see Note 7)
Stockholders' equity:
Preferred stock, $1.00 par value, 1,000 shares authorized, 0 shares issued and outstanding	—		—		—
Common stock, $0.10 par value, 100,000 shares authorized; 13,422, 13,964, and 14,693 issued; 13,360, 13,903, and 14,635 outstanding	1,342		1,396		1,469
Additional paid-in capital	155,097		160,348		155,908
Treasury stock, at cost (62, 61, and 58 shares)	(3,512)		(3,443)		(3,234)
Deferred compensation	3,512		3,443		3,234
Accumulated other comprehensive loss	(14,668)		(14,186)		(12,930)
Retained earnings	71,913		77,914		563
Total stockholders’ equity

SEC Form 10-Q filed by Children's Place Inc.