Children's Place (PLCE) sinks after a huge guidance miss

Children's Place (NASDAQ: PLCE) released its Q3 earnings report today, which prompted shares to trade nearly 16% lower in pre-open Thursday.

The company reported earnings per share of $3.22, falling short of the estimated $3.58. The third-quarter revenue reached $480.2 million, exceeding the consensus estimate of $466.68 million.

More concerningly, Children's Place anticipates an EPS in the range of $0.25 to $0.45 for Q4, significantly below the consensus estimate of $1.35.

The company also expects revenue for this quarter to be between $460 million and $465 million, surpassing the consensus estimate of $437 million.

“Our bottom-line results were negatively impacted in the third quarter by higher than planned distribution costs driven by a combination of largely unplanned but addressable factors,” said Jane Elfers, President and Chief Executive Officer.

By Senad Karaahmetovic

You May Also Be Interested In

• lululemon athletica (LULU) Tops Q2 EPS by $1.10, Cuts Guidance
• Guidewire Software (GWRE) Tops Q4 EPS by 6c; Offers Guidance
• Asana, Inc. (ASAN) Tops Q2 EPS by 1c; offers guidance