Back in March, I discussed the wild ride for investors in Children's Place
For June, comps at Children's Place fell 4% after last year's 15% jump. This time around, the company struggled across the board, with its namesake stores reporting a 4% drop in comps and its Disney locations falling by 3%. I guess the one bit of solace for investors is that its quarterly comps were flat despite the most recent figures.
Unfortunately, the rest of the news only gets worse. As a result of its dropping sales, Children's Place lowered its earnings outlook for the second quarter. It now expects to lose $0.94 to $0.98 per share, well below analysts' expectations of a $0.59 per-share loss.
As of this writing, competitor Gymboree
After its stock fell nearly 12% Monday, Children's Place now trades at levels not seen in more than a year. That doesn't necessarily mean it's a value. The company is obviously having difficulties, and there's no evidence yet that a turnaround will be possible anytime soon. We already know the second quarter is one it will want to forget, but we'll have a much better indication about its ability to recover with the busy back-to-school season just around the corner. If students don't flock to its stores, it's no place I'd want to be.
For more on the kiddie retailers, check out:
Small caps. Large caps. Fool CAPS! The Motley Fool's investor-intelligence community rates thousands of stocks to help you improve your own stock selections. Join today for a fun new way to research stocks.
Fool contributor Mike Cianciolo welcomes feedback and doesn't own any of the companies in this article.
More from The Motley Fool
Why The Children's Place, Teva Pharmaceutical Industries, and Sears Holdings Jumped Today
Get the scoop on what sent these stocks higher.
Why Did The Children's Place, Inc. Stock Climb 11% in September?
The company faces a difficult operating environment but has navigated it well.
How Strong Management Is Pushing Children's Place Inc to Fresh All-time Highs
The kids apparel retailer generously boosted its dividend as the company faces down non-existent top line growth with growing efficiency and profits.