Wired News – The Children’s Place in Strategic Partnership with China’s Largest Specialty Children’s Apparel Retailer with Eye on Growing Chinese Market

Stock Monitor: Buckle Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 22, 2018 / Active-Investors.com has just released a free research report on The Children’s Place, Inc. (NASDAQ: PLCE) (“PLCE”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PLCE as the Company’s latest news hit the wire. On March 20, 2018, the Company announced the signing of an exclusive license agreement with Zhejiang Semir Garment Co. Ltd (Semir). Semir is the parent Company of Balabala, China’s largest specialty children’s apparel retailer and the licencing agreement covers the Greater China market including Mainland China, Taiwan, Hong Kong, and Macau. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for The Buckle, Inc. (NYSE: BKE), which also belongs to the Services sector as the Company Children’s Place. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=BKE

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, The Children’s Place most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=PLCE

Commenting on the partnership and licencing agreement with Semir, Jane Elfers, President and CEO of PLCE, said:

“Today’s announcement unites two of the world’s largest children’s apparel retailers, both with long and outstanding track records of success. Entering the China market through this strategic partnership is a game-changer for our international business and is clearly a case where one plus one equals three.”

David Xu, President of Balabala, added:

“The Children’s Place will bring unique quality, fashion, and value to our customers in China. The combination of our deep knowledge of the market, our strong retail experience and local sourcing capabilities with the innovative design and appeal of The Children’s Place apparel, accessories, and footwear will result in unsurpassed market reach creating significant value for shareholders of both companies.”

Aim and scope of the Licencing agreement with Semir

PLCE’s licencing agreement with Semir is for a period of five years. During the period of the agreement, Semir will follow an omni-channel strategy and plans open at least 300 Children’s Place locations in Greater China and operate PLCE’s ecommerce business. The strategic partnership between PLCE and Semir is expected to generate $125 million to $150 million in retail sales.

The partnership makes great economic sense for PLCE given that young children’s apparel market in China is one of the fastest growing categories and this market is currently valued at approximately $24 billion. This figure is set to double by 2025 with China’s two-child policy in place. Semir is an established player in this category and currently operates and franchises approximately 4,400 children’s apparel stores under the Balabala brand. Additionally, it has a strong hold on the children’s apparel ecommerce business via tie-ups with online partners like Tmall, JD, and VIP.com.

PLCE believes that Semir’s leading market position in the children’s retailing in China, strong retail, digital and operational capabilities, and their extensive knowledge of the Greater China market will provide a great platform to jumpstart its entry into the Chinese market. PLCE also believes that this would not be possible with any other Chinese player. Semir with its extensive knowledge of local market will be able to provide instant access to prime retail locations and franchisees for PLCE stores, open doors for PLCE to gain access to local sourcing and logistics capabilities. The strategic partnership with Semir allows PLCE to move closer to its plans to establishing itself as a “leading global omni-channel children’s apparel brand”.

Q4 2017 and FY17 Financial Results

In a separate communication, the Company also shared its financial results for Q4 2017 and full year 2017. Below is a few key highlights:

The Company reported increase in net sales of 9.4% for Q4 2017, while net sales increased by 4.8% to $1,870.3 million in fiscal 2017;

The Company reported net loss of $9.9 million, or $0.57 per diluted share, for Q4 2017 while its net income for the fiscal 2017 was $84.7 million, or $4.67 per diluted share;

The Company’s gross profit was $209.9 million for Q4 2017 and $711.4 million for fiscal 2017.;

The Company’s Board has approved a new share repurchase program for $250 million and declared a quarterly dividend of $0.50 per share which is 25% higher than the previously declared dividend of $0.40 per share. The dividend would be payable on April 27, 2018, for shareholders on record date of April 16, 2018.

About The Children’s Place, Inc.

Secaucus, New Jersey-based PLCE is one of the largest pure-play children’s specialty apparel retailer in North America. The Company designs, contracts to manufacture, sells, and licenses to sell fashionable, high-quality children’s merchandise at reasonable prices which are sold under the “The Children’s Place”, “Place”, and “Baby Place” brands. The Company has 1,014 stores in US, Canada, and Puerto Rico as well as an online portal at childrensplace.com as on February 03, 2018. Additionally, the Company has 190 international points of distribution open and operated by its 7 franchise partners in 19 countries.

Stock Performance Snapshot

March 21, 2018 – At Wednesday’s closing bell, The Children’s Place’s stock advanced 5.78%, ending the trading session at $135.35.

Volume traded for the day: 969.68 thousand shares, which was above the 3-month average volume of 441.30 thousand shares.

Stock performance in the previous six-month period – up 21.83%; and past twelve-month period – up 18.78%

After yesterday’s close, The Children’s Place’s market cap was at $2.36 billion.

Price to Earnings (P/E) ratio was at 19.20.

The stock has a dividend yield of 1.18%.

The stock is part of the Services sector, categorized under the Apparel Stores industry.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third-party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors

ReleaseID: 493894