The Children’s Place, Inc. Issues Chairman’s Letter to Shareholders

Rhea-AI Summary

The Children's Place (Nasdaq: PLCE), a leading omni-channel children's specialty retailer, issued a letter to its shareholders from Chairman Turki S. AlRajhi. AlRajhi, who is also Chairman and CEO of Mithaq, the company's majority shareholder, outlined the company’s financial performance, strategic vision, and capital allocation priorities. Key points include Mithaq's support for a digital-first model, plans for operational improvements, and enhanced communication practices aimed at bolstering stakeholder confidence. The full letter is available on the company's website.

Positive

• Chairman Turki S. AlRajhi reaffirms support for PLCE's digital-first model.
• Strategic vision includes operational improvements and enhanced communication practices.
• Clear capital allocation priorities set to maximize shareholder value.

Negative

• The letter lacks specific financial data or performance metrics.
• Absence of concrete timelines for operational initiatives might concern investors.
• No mention of immediate actionable steps to address current market challenges.

SECAUCUS, N.J., May 24, 2024 (GLOBE NEWSWIRE) -- The Children’s Place, Inc. (Nasdaq: PLCE), an omni-channel children’s specialty portfolio of brands with an industry-leading digital-first model, today announced that Turki S. AlRajhi, Chairman of the Company’s Board of Directors and Chairman and CEO of Mithaq, the Company’s majority shareholder, issued a letter to shareholders of The Children’s Place, Inc.

In the letter, Mr. AlRajhi provides brief information about Mithaq’s background and approach; views on The Children’s Place’s historical financial performance; and preliminary observations of the Company’s strategy going forward, including capital allocation priorities, operational initiatives and communications practices.

The Chairman’s Letter can be found on the Company’s website:

2023-2024 Chairman’s Letter to TCP’s Shareholders.pdf (childrensplace.com)

About The Children’s Place

The Children’s Place is an omni-channel children’s specialty portfolio of brands with an industry-leading digital-first model. Its global retail and wholesale network includes four digital storefronts, more than 500 stores in North America, wholesale marketplaces and distribution in 16 countries through six international franchise partners. The Children’s Place designs, contracts to manufacture, and sells fashionable, high-quality apparel, accessories and footwear predominantly at value prices, primarily under its proprietary brands: “The Children’s Place”, “Gymboree”, “Sugar & Jade”, and “PJ Place”. For more information, visit: www.childrensplace.com and www.gymboree.com, as well as the Company’s social media channels on Instagram, Facebook, X, formerly known as Twitter, YouTube and Pinterest.  

Forward Looking Statements

This press release contains or may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements relating to the Company’s strategic initiatives and results of operations, including adjusted net income (loss) per diluted share. Forward-looking statements typically are identified by use of terms such as “may,” “will,” “should,” “plan,” “project,” “expect,” “anticipate,” “estimate” and similar words, although some forward-looking statements are expressed differently. These forward-looking statements are based upon the Company’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results and performance to differ materially. Some of these risks and uncertainties are described in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” section of its annual report on Form 10-K for the fiscal year ended February 3, 2024. Included among the risks and uncertainties that could cause actual results and performance to differ materially are the risk that the Company will be unable to achieve operating results at levels sufficient to fund and/or finance the Company’s current level of operations and repayment of indebtedness, the risk that the Company will be unsuccessful in gauging fashion trends and changing consumer preferences, the risks resulting from the highly competitive nature of the Company’s business and its dependence on consumer spending patterns, which may be affected by changes in economic conditions (including inflation), the risk that changes in the Company’s plans and strategies with respect to pricing, capital allocation, capital structure, investor communications and/or operations may have a negative effect on our business, the risk that the Company’s strategic initiatives to increase sales and margin, improve operational efficiencies, enhance operating controls, decentralize operational authority and reshape the Company’s culture are delayed or do not result in anticipated improvements, the risk of delays, interruptions, disruptions and higher costs in the Company’s global supply chain, including resulting from disease outbreaks, foreign sources of supply in less developed countries, more politically unstable countries, or countries where vendors fail to comply with industry standards or ethical business practices, including the use of forced, indentured or child labor, the risk that the cost of raw materials or energy prices will increase beyond current expectations or that the Company is unable to offset cost increases through value engineering or price increases, various types of litigation, including class action litigations brought under securities, consumer protection, employment, and privacy and information security laws and regulations, the imposition of regulations affecting the importation of foreign-produced merchandise, including duties and tariffs, risks related to the existence of a controlling shareholder, and the uncertainty of weather patterns. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

The Children’s Place Contact:

Investor Relations (201) 558-2400 ext. 14500

FAQ

What is the recent announcement from The Children's Place (PLCE)?

The Children's Place issued a letter to shareholders from Chairman Turki S. AlRajhi, outlining the company's strategic vision, financial performance, and capital allocation priorities.

Who wrote the letter to shareholders of The Children's Place?

The letter was written by Turki S. AlRajhi, Chairman of the Board of Directors at The Children's Place and CEO of Mithaq, the company's majority shareholder.

Where can I find the full Chairman's Letter to The Children's Place shareholders?

The full Chairman's Letter can be found on The Children's Place's website.

What are the key points outlined in the Chairman's Letter from The Children's Place (PLCE)?

The letter discusses Mithaq's background, The Children's Place’s historical financial performance, strategic vision, capital allocation priorities, and operational initiatives.

What does Mithaq's involvement mean for The Children's Place (PLCE)?

Mithaq, as the majority shareholder, supports The Children's Place's digital-first model and strategic initiatives aimed at bolstering operational efficiency and shareholder value.