Why Children's Place Is Poised to Keep Falling

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, children's apparel retailer The Children's Place (NASDAQ: PLCE  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Children's Place and see what CAPS investors are saying about the stock right now.

Children's Place facts

Headquarters (Founded)

Secaucus, N.J. (1969)

Market Cap

$1.1 billion

Industry

Apparel retail

Trailing-12-Month Revenue

$1.8 billion

Management

CEO Jane Elfers (since April 2010)
CFO Michael Scarpa (since December 2012)

Return on Capital (Average, Past 3 Years)

13.3%

Cash/Debt

$203.1 million / $0

Competitors

Gap (NYSE: GPS  )
Gymboree
Target
(NYSE: TGT  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 25% of the 201 members who have rated Children's Place believe the stock will underperform the S&P 500 going forward.

Earlier today, one of those Fools, JohnStuartMill, succinctly summed up the Children's Place bear case for our community:

Discretionary sales are going to stay down until people start to "feel" better (especially the low income spenders). That is definitely not now. The sales in this company are falling as seen by the miss in the October quarter and the outlook lowered for the next year.

And now with the CFO leaving, there is nothing for a catalyst to get this [company's] stock going. If fact there is a down draft.

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Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 12, 2013, at 6:15 PM, MonsterFluff wrote:

    This is a weak closer look.

    More articles that have actual thinking in them would be appreciated

    Filing PLCE under "wait til consumers feel better" is not much of a reason to avoid buying PLCE

    Did the CFO embezzle funds, cook the books. lie to the SEC? If not this is probably a non-event. Need a closer look at that

    Too many of these articles are canned with zero information. It is a disservice to anyone taking the time to click on this really wanting to know why PLCE may keep on falling.

    After reading the article I have no idea why PLCE may keep on falling.Please TMF--give us better articles that actual people write and think about rather than these data scraping templates. Please?

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