Latest news with #Children'sPlace
Yahoo
4 days ago
- Business
- Yahoo
The Children's Place Reports First Quarter 2025 Results
SECAUCUS, N.J., June 06, 2025 (GLOBE NEWSWIRE) -- The Children's Place, Inc. (Nasdaq: PLCE), the largest pure-play children's specialty retailer in North America with an omni-channel portfolio of brands and an industry-leading digital-first model, today announced financial results for the Company's first fiscal quarter ended May 3, 2025. Muhammad Umair, President and Interim Chief Executive Officer said, 'The first quarter was a challenging time for our business and customers. We are not satisfied with the results, but we will continue to take actions focused on the long-term health of the Company as we strive to drive more sustainable growth and stronger performance moving forward. Our results remain under pressure due to the current macroeconomic environment, including softer consumer sentiment and particularly unseasonable weather patterns, while the lapping of our shipping threshold increase added an anticipated challenge to top-line sales. While we are not pleased with the results, management is moving with urgency to remediate, and we are currently entering the back-to-school selling season with a more balanced inventory position. We will continue to focus on improving our inventory turns and explore plans to further streamline our productivity, while reducing inefficient SG&A spending, with more to come in the near future.' 'Looking ahead for fiscal 2025, we expect to see continued top-line sales pressures but remain committed to our long-term goal of delivering profitable top-line sales, as we refine our omni-channel strategy and overall business model. While we have tightly managed our SG&A spending, we continue to seek better leverage over our expenses and reinvest in the long-term growth of the business, including plans for a revitalized loyalty program, store openings in the back-half of 2025, new product offerings that include new licensing partnerships and collaborations, along with innovative marketing initiatives to acquire new customers.' 'The current retail environment, including the tariff situation and its impact on our core customer, continues to bring significant uncertainty and headwinds to our near-term results, however, we remain confident that our sourcing diversification strategies, with no single country representing more than 20% of our total sourcing capacity, including limited exposure to China in the mid-single digit range, have us well-positioned to offset potential tariff impacts and will allow us to continue to deliver value to our customers at affordable prices.' First Quarter 2025 ResultsNet sales decreased $25.8 million, or 9.6%, to $242.1 million in the three months ended May 3, 2025, compared to $267.9 million in the three months ended May 4, 2024. The decrease in net sales was driven by a decrease in e-commerce sales due to an increase in shipping minimum thresholds to $40 from $20 in the prior year period as we continue our focus on profitable top-line sales, combined with lower traffic and conversion. The Company also experienced a decrease in brick-and-mortar revenue due to a lower store count and lower sales volume due to lower traffic. Our stores and e-commerce sales were both negatively impacted by the current macroeconomic environment, including uncertainty around potential tariffs, which has decreased consumer sentiment. The decrease in net sales was partially offset by an increase in wholesale revenue. Comparable retail sales decreased 13.6% for the quarter, largely driven by the decrease in e-commerce revenue. Gross profit decreased $21.9 million to $70.8 million in the three months ended May 3, 2025, compared to $92.7 million in the three months ended May 4, 2024. Gross margin decreased 540 basis points to 29.2% during the three months ended May 3, 2025, compared to 34.6% in the prior year. The decrease in margin was caused by a combination of factors, including channel mix from the higher penetration of wholesale sales and a higher mix of markdown versus full price product sales, partially offset by favorability from higher shipping minimum thresholds compared to last year. Selling, general, and administrative expenses were $86.7 million in the three months ended May 3, 2025, compared to $109.1 million in the three months ended May 4, 2024. The decrease was due to a reduction in one-time costs incurred in the prior year, primarily associated with the Company's change of control and broken financing deal costs. Adjusted selling, general, and administrative expenses were $86.5 million in the three months ended May 3, 2025, compared to $88.6 million in the comparable period last year, and deleveraged 260 basis points to 35.7% of net sales, due to the lower sales combined with incremental marketing spend as a percentage of net sales. As we reinvest in marketing and focus on content, we are beginning to see initial promising indicators, as Google search interest has grown, along with an acceleration of Tik Tok followers. We have continued to control our costs well, as this represents the lowest level of Adjusted selling, general, and administrative expenses in more than 15 years for the first quarter of a fiscal year and we continue to evaluate opportunities to further optimize our operating model. Operating loss was $(24.1) million in the three months ended May 3, 2025, compared to $(28.0) million in the three months ended May 4, 2024. Adjusted operating loss was $(24.0) million in the three months ended May 3, 2025, compared to $(5.1) million in the comparable period last year. Net interest expense was $8.6 million in the three months ended May 3, 2025, compared to $7.7 million in the three months ended May 4, 2024. The increase was due to the write-off of deferred financing costs associated with the partial paydown of the first term loan entered into with the Company's majority shareholder, Mithaq Capital SPC ('Mithaq') as a result of the Company's rights offering which was completed during the first quarter, in addition to higher borrowings on the Company's revolving credit facility with Wells Fargo and other bank lenders, partially offset by lower average interest rates during the quarter. Provision for income taxes was $1.3 million in the three months ended May 3, 2025, compared to $2.1 million during the three months ended May 4, 2024. The Company continues to adjust its valuation allowance based upon its ongoing operating results. Net loss was $(34.0) million, or $(1.57) per diluted share, in the three months ended May 3, 2025, compared to $(37.8) million, or $(2.98) per diluted share, in the three months ended May 4, 2024. Adjusted net loss was $(32.8) million, or $(1.52) per diluted share, compared to $(14.9) million, or $(1.18) per diluted share, in the comparable period last year. Store Update During the first quarter, the Company's store count remained at 495 stores, as the Company did not open or close any stores. The store count at the end of the first quarter of 2024 was 518. Balance Sheet and Cash FlowAs of May 3, 2025, the Company had $5.7 million of cash and cash equivalents, $38.7 million of borrowing availability under its revolving credit facility and an additional $40.0 million in availability under the unsecured Commitment Letter provided by Mithaq, representing total liquidity of $84.4 million. The Company had $258.6 million outstanding on its revolving credit facility and has not drawn down on its Mithaq credit facility. Additionally, the Company used $43.0 million in operating cash flows in the three months ended May 3, 2025. Inventories were $422.2 million as of May 3, 2025, compared to $425.2 million as of May 4, 2024. These inventory levels were a result of a shift in our product strategy, as we better balance the mix of fashion and basic product, combined with the impacts of lower conversion. On February 6, 2025, the Company raised $90 million in capital and issued 9.2 million shares of common stock, pursuant to the completion of its rights offering. The shares issued were settled through the receipt of $29.8 million in cash, which was substantially used to prepay amounts owed under our revolving credit facility with Wells Fargo and other bank lenders, and a reduction of $60.2 million in the amount owed by the Company under its first term loan from Mithaq. Non-GAAP ReconciliationThe Company's results are reported in this press release on a GAAP and as adjusted, non-GAAP basis. Adjusted net loss, adjusted net loss per diluted share, adjusted gross profit, adjusted selling, general, and administrative expenses, and adjusted operating loss are non-GAAP measures, and are not intended to replace GAAP financial information, and may be different from non-GAAP measures reported by other companies. The Company believes the income and expense items excluded as non-GAAP adjustments are not reflective of the performance of its core business, and that providing this supplemental disclosure to investors will facilitate comparisons of the past and present performance of its core business. Please refer to the 'Reconciliation of Non-GAAP Financial Information to GAAP' later in this press release, which sets forth the non-GAAP operating adjustments for the 13-week periods ended May 3, 2025 and May 4, 2024. About The Children's PlaceThe Children's Place is the largest pure-play children's specialty retailer in North America with an omni-channel portfolio of brands and an industry-leading digital-first model. Its global retail and wholesale network includes two digital storefronts, 495 stores in North America, wholesale marketplaces and distribution in 12 countries through seven international franchise partners. The Children's Place designs, contracts to manufacture, and sells fashionable, high-quality, head-to-toe outfits predominantly at value prices, primarily under its proprietary brands: 'The Children's Place', 'Gymboree', 'Sugar & Jade', and 'PJ Place'. For more information, visit: and Forward-Looking StatementsThis 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,' 'believe' 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 'Part 1, item1A. Risk Factors' section of its annual report on Form 10-K for the fiscal year ended February 1, 2025. 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 changes in trade policy and tariff regimes, including newly imposed U.S. tariffs and any responsive non-U.S. tariffs, may impact our international manufacturing and operations or our customers' discretionary spending habits, 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 the Company's 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 litigation brought under securities, consumer protection, employment, and privacy and information security laws and regulations, risks related to the existence of a controlling shareholder, and the uncertainty of weather patterns, as well as other risks discussed in the Company's filings with the SEC from time to time. 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. Contact: Investor Relations (201) 558-2400 ext. 14500 THE CHILDREN'S PLACE, CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share amounts)(Unaudited) First Quarter Ended May 3,2025 May 4,2024 Net sales $ 242,125 $ 267,878 Cost of sales (exclusive of depreciation and amortization) 171,342 175,137 Gross profit 70,783 92,741 Selling, general and administrative expenses 86,670 109,094 Depreciation and amortization 8,230 11,635 Operating loss (24,117 ) (27,988 ) Related party interest expense (1,871 ) (389 ) Other interest expense, net (6,691 ) (7,332 ) Loss before provision for income taxes (32,679 ) (35,709 ) Provision for income taxes 1,344 2,086 Net loss $ (34,023 ) $ (37,795 ) Loss per common share (1) Basic $ (1.57 ) $ (2.98 ) Diluted $ (1.57 ) $ (2.98 ) Weighted average common shares outstanding (1) Basic 21,629 12,665 Diluted 21,629 12,665 (1) In connection with the completion of the rights offering on February 6, 2025, the Company's weighted average common shares outstanding and basic and diluted loss per share were retroactively adjusted for all periods presented by a factor of 1.002. THE CHILDREN'S PLACE, OF NON-GAAP FINANCIAL INFORMATION TO GAAP(In thousands, except per share amounts)(Unaudited) First Quarter Ended May 3,2025 May 4,2024 Net loss $ (34,023 ) $ (37,795 ) Non-GAAP adjustments: Loss on extinguishment of debt 1,039 — Restructuring costs 934 264 Reversal of legal settlement accrual (796 ) (2,279 ) Change of control — 14,589 Broken financing and restructuring fees — 6,661 Accelerated depreciation — 1,557 Canada distribution center closure — 781 Credit agreement — 750 Fleet optimization — 585 Aggregate impact of non-GAAP adjustments 1,177 22,908 Income tax effect (1) — — Net impact of non-GAAP adjustments 1,177 22,908 Adjusted net loss $ (32,846 ) $ (14,887 ) GAAP net loss per diluted common share (2) $ (1.57 ) $ (2.98 ) Adjusted net loss per diluted common share (2) $ (1.52 ) $ (1.18 ) (1) The tax effects of the non-GAAP items are calculated based on the statutory rate of the jurisdiction in which the discrete item resides, adjusted for the impact of any valuation allowance.(2) In connection with the completion of the rights offering on February 6, 2025, the Company's weighted average common shares outstanding and basic and diluted loss per share were retroactively adjusted for all periods presented by a factor of 1.002. THE CHILDREN'S PLACE, OF NON-GAAP FINANCIAL INFORMATION TO GAAP(In thousands)(Unaudited) First Quarter Ended May 3,2025 May 4,2024 Operating loss $ (24,117 ) $ (27,988 ) Non-GAAP adjustments: Restructuring costs 934 264 Reversal of legal settlement accrual (796 ) (2,279 ) Change of control — 14,589 Broken financing and restructuring fees — 6,661 Accelerated depreciation — 1,557 Canada distribution center closure — 781 Credit agreement — 750 Fleet optimization — 585 Aggregate impact of non-GAAP adjustments 138 22,908 Adjusted operating loss $ (23,979 ) $ (5,080 ) THE CHILDREN'S PLACE, OF NON-GAAP FINANCIAL INFORMATION TO GAAP(In thousands)(Unaudited) First Quarter Ended May 3,2025 May 4,2024 Gross profit $ 70,783 $ 92,741 Non-GAAP adjustments: Change of control — 905 Aggregate impact of non-GAAP adjustments — 905 Adjusted gross profit $ 70,783 $ 93,646 First Quarter Ended May 3,2025 May 4,2024 Selling, general and administrative expenses $ 86,670 $ 109,094 Non-GAAP adjustments: Reversal of legal settlement accrual 796 2,279 Restructuring costs (934 ) (264 ) Change of control — (13,684 ) Broken financing and restructuring fees — (6,661 ) Canada distribution center closure — (781 ) Credit agreement — (750 ) Fleet optimization — (585 ) Aggregate impact of non-GAAP adjustments (138 ) (20,446 ) Adjusted selling, general and administrative expenses $ 86,532 $ 88,648 THE CHILDREN'S PLACE, CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited) May 3,2025 February 12025* May 4,2024 Assets: Cash and cash equivalents $ 5,694 $ 5,347 $ 12,960 Accounts receivable 41,337 42,701 28,286 Inventories 422,204 399,602 425,156 Prepaid expenses and other current assets 31,374 20,354 43,210 Total current assets 500,609 468,004 509,612 Property and equipment, net 92,094 97,487 116,779 Right-of-use assets 166,008 161,595 173,987 Tradenames, net 13,000 13,000 41,000 Other assets, net 7,891 7,466 6,957 Total assets $ 779,602 $ 747,552 $ 848,335 Liabilities and Stockholders' Equity (Deficit): Revolving loan $ 258,623 $ 245,659 $ 226,100 Accounts payable 131,392 126,716 193,100 Current portion of operating lease liabilities 66,522 67,407 70,668 Accrued expenses and other current liabilities 87,072 78,336 83,348 Total current liabilities 543,609 518,118 573,216 Related party long-term debt 107,010 165,974 166,635 Long-term portion of operating lease liabilities 112,667 107,287 118,363 Other long-term liabilities 14,901 15,584 24,971 Total liabilities 778,187 806,963 883,185 Stockholders' equity (deficit) 1,415 (59,411 ) (34,850 ) Total liabilities and stockholders' equity (deficit) $ 779,602 $ 747,552 $ 848,335 * Derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended February 1, 2025. THE CHILDREN'S PLACE, CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited) First Quarter Ended May 3,2025 May 4,2024 Net loss $ (34,023 ) $ (37,795 ) Non-cash adjustments 29,216 43,818 Working capital (38,151 ) (116,779 ) Net cash used in operating activities (42,958 ) (110,756 ) Net cash used in investing activities (3,413 ) (4,694 ) Net cash provided by financing activities 42,298 114,889 Effect of exchange rate changes on cash and cash equivalents 4,420 (118 ) Net increase (decrease) in cash and cash equivalents 347 (679 ) Cash and cash equivalents, beginning of period 5,347 13,639 Cash and cash equivalents, end of period $ 5,694 $ 12,960 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-04-2025
- Business
- Yahoo
Children's Place (PLCE) Reports Earnings Tomorrow: What To Expect
Kid's apparel and accessories retailer The Children's Place (NASDAQ:PLCE) will be announcing earnings results tomorrow after the bell. Here's what to look for. Children's Place beat analysts' revenue expectations by 3.4% last quarter, reporting revenues of $480.2 million, down 5.7% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts' expectations and a significant miss of analysts' EBITDA estimates. Is Children's Place a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Children's Place's revenue to grow 1.6% year on year to $463.6 million, a reversal from the 10.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.66 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Children's Place has missed Wall Street's revenue estimates four times over the last two years. With Children's Place being the first among its peers to report earnings this season, we don't have anywhere else to look to get a hint at how this quarter will unravel for apparel and footwear retail stocks. However, the segment has faced declining investor sentiment as Children's Place's peer group is down 3.8% on average over the last month. Children's Place's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $8 (compared to the current share price of $7.14). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
06-04-2025
- Business
- Yahoo
The Children's Place, Inc.'s (NASDAQ:PLCE) latest 21% decline adds to one-year losses, institutional investors may consider drastic measures
Given the large stake in the stock by institutions, Children's Place's stock price might be vulnerable to their trading decisions Mithaq Capital owns 62% of the company Using data from company's past performance alongside ownership research, one can better assess the future performance of a company This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Every investor in The Children's Place, Inc. (NASDAQ:PLCE) should be aware of the most powerful shareholder groups. With 78% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). As a result, institutional investors endured the highest losses last week after market cap fell by US$41m. Needless to say, the recent loss which further adds to the one-year loss to shareholders of 19% might not go down well especially with this category of shareholders. Institutions or "liquidity providers" control large sums of money and therefore, these types of investors usually have a lot of influence over stock price movements. As a result, if the downtrend continues, institutions may face pressures to sell Children's Place, which might have negative implications on individual investors. Let's take a closer look to see what the different types of shareholders can tell us about Children's Place. Check out our latest analysis for Children's Place Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that Children's Place does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Children's Place's historic earnings and revenue below, but keep in mind there's always more to the story. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Our data indicates that hedge funds own 5.5% of Children's Place. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Mithaq Capital is currently the largest shareholder, with 62% of shares outstanding. This implies that they have majority interest control of the future of the company. With 5.5% and 1.8% of the shares outstanding respectively, Quinn Opportunity Partners LLC and Jane Elfers are the second and third largest shareholders. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. We can report that insiders do own shares in The Children's Place, Inc.. It has a market capitalization of just US$151m, and insiders have US$3.9m worth of shares, in their own names. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling. With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Children's Place. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 5 warning signs for Children's Place (4 make us uncomfortable) that you should be aware of. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future . NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
3 Reasons to Sell PLCE and 1 Stock to Buy Instead
Children's Place's stock price has taken a beating over the past six months, shedding 43.7% of its value and falling to $8.71 per share. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Children's Place, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Despite the more favorable entry price, we're sitting this one out for now. Here are three reasons why we avoid PLCE and a stock we'd rather own. Offering sizes up to young teens, The Children's Place (NASDAQ:PLCE) is a specialty retailer that sells its own brands of kid's apparel and accessories. Same-store sales is an industry measure of whether revenue is growing at existing stores, and it is driven by customer visits (often called traffic) and the average spending per customer (ticket). Children's Place's demand has been shrinking over the last two years as its same-store sales have averaged 11.3% annual declines. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Sadly for Children's Place, its EPS declined by 37% annually over the last four years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by. Children's Place's $454.2 million of debt exceeds the $13.64 million of cash on its balance sheet. Furthermore, its 78× net-debt-to-EBITDA ratio (based on its EBITDA of $5.63 million over the last 12 months) shows the company is overleveraged. At this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company's rating if profitability falls. Children's Place could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies. We hope Children's Place can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt. Children's Place falls short of our quality standards. After the recent drawdown, the stock trades at 8.4× forward price-to-earnings (or $8.71 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are more exciting stocks to buy at the moment. We'd recommend looking at our favorite semiconductor picks and shovels play. With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we're laser-focused on finding the best stocks for this upcoming cycle. Put yourself in the driver's seat by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
CBC
05-02-2025
- Entertainment
- CBC
How I learned to embrace the intersections of my identity by finally enrolling in Hogwarts
Emerging Queer Voices is a monthly LGBTQ arts and culture column that features different up-and-coming LGBTQ writers. You can read more about the series and find all published editions here. Looking at me, you would hardly guess I used to have a deeply committed relationship with itchy below-the-knee skirts from the Children's Place, ripping toilet paper before sundown on Fridays after school and asking "neighbour Paul" to come over and adjust the thermostat on Saturdays. But I did. My weekdays searching for the meaning of "sexy" and "cool" on were bookended with weekends leading children's programming during Torah services and banging the Shabbos table to various Yiddish-y gibberish at my rabbi's home — the old faithful "ai ai — ai ai ai ai" a go-to. I'm an only child in a mixed-race family: my mother is white and of Jewish heritage, from Pointe-Claire, Que., while my father is African American from the South Shore neighbourhood of Chicago and whose childhood proximity to Judaism brought him to the religion as an adult. Together, they decided to upgrade their faith to Modern Orthodox when I was in elementary school, gifting me a ridiculous lifelong game of identity Mad Libs. Recently, I found myself back in a synagogue for the first time in I don't know how long, greeted at the door by a comically tiny woman with snow for hair and who couldn't help her ignorance. "Shabbat shalom," she says to my more obviously Jewish friend. "Welcome!" she says to me. "Jambo!" I think to myself. I am Cady Heron, a recent white U.S. immigrant from Hollywood's "country of Africa," trying to show solidarity with the Black students who look like home. I see family, and this woman sees "not from around these parts." An all too familiar consequence of this misunderstanding is my renewed subscription to the dissonance between my fractured sense of home in Blackness — shaped in part by estranged relationships with what's left of my Black American family, where, visually, it's assumed I belong — and the skepticism I face in the spaces I was nurtured to occupy. The succession of a synagogue service feels as natural to me as the blood in my veins and the curls on my head. But I am perpetually trapped on the subway, kitty-corner to a Hassid, locked into his tiny siddur — me, in a miniskirt and a going-out top on my way to Sweat Tour, with our shared language on the tip of my tongue. I choose to sit behind the glass where he can't see me even if he could. He would rather be at yeshiva, and I would rather be at Sweat Tour, but knowing this doesn't help the grief that once upon a time, we sat at the same Shabbos table. Much of this dissonance stems from attending Hebrew day school with 60 largely upper-middle-class white students — well, 59. I was the only [fill in the blank] in so many respects. Naturally, I was a bit of a pill, largely because each day brought an entirely new and creative test of my inclusion from students and teachers alike; the farewell tour of retired Roald Dahl-ian Catholic school teachers; a part-time real estate agent, part-time Hebrew teacher with children for enemies; a gang of eldest daughters losing faith in my prospects of being cool; a gang of eldest sons oscillating between wanting to destroy me and wanting to kiss me. I didn't look like a duck or swim like a duck and, although I could quack like one, I certainly was not a duck. Maybe a swan? "Yer a wizard, Harry." One of the nicer girls in my class always had her face buried in a book in the schoolyard at recess, probably for her own protection. Her tiny hands were engulfed by the biggest, chunkiest books I'd ever seen. I remember shaking off any of her good-natured attempts to deal me into what was obviously such a rich experience for her. But I couldn't afford to dip my toes into the dorky wonderland of Hogwarts or, eventually, Baby's First Erotica — Twilight. Knowing what was cool, whether or not I knew how to successfully participate in it, was my only chance at survival. Harry Potter was not cool and therefore not for me. I excluded myself so as not to give power to my own potential exclusion. Besides, I could always chalk it up to Judaism's general displeasure with sorcery and witchcraft. I can still hear my dad scolding, "Avodah Zarah." I later accepted her invitation to watch Doctor Who on her iPod Touch on the painful 12-hour van ride to Washington, D.C., for our Grade 8 grad trip. I never did watch the show again, but she was right to try to recruit me. It would take me another 14 years before I made my way to Platform Nine and Three-Quarters of my own accord. First, stumbling through a clumsy tug of war for my identity as I straddled The Secular and The Sacred at a time when Dov Charney's vision of spandex reigned supreme; prioritizing indie-electronic 8tracks playlists blasting Passion Pit or XXYYXX, or something worse, on my iPod Touch; practising how to correctly pronounce Bon Iver in case of a pop quiz from a boy with a banjo; and asking God why He didn't make me in the image of Effy Stonem from Skins (the Eve of Tumblr, if you ask me). This past November, in planning our upcoming lonely-children (read: nowhere else to go) Christmas Eve slumber party, a friend suggested we all watch Harry Potter while we make the yuletide gay. "I've actually never seen any of the Harry Potter movies," I said. (Or flipped through a single page.) And so it was decided. The group would slowly chip away at the wizarding world of Harry Potter,one Sunday at a time until Christmas. Eight weeks for eight movies. Perfect. Cracking open the door to a party I'm 20 years late to, where the host of the party has since taken the stage to reveal an exceptionally disappointing left (or, in this case, hard right) turn in her politics. I missed out on a lot of formative experiences as I constantly weighed the risks of what I could and couldn't afford to rebel against in my coming of age. The exclusion I felt staying home for Friday night Shabbat dinners instead of experiencing the "epic highs and lows of high school [parties]" was remedied by my secret self-guided study of Pussycat Dolls Present: Girlicious and America's Next Top Model. But what was lost in white-knuckling the little control I felt over my identity was worsened by sitting out on monoculture experiences that gave other people the spoons to feel seen and accepted in similar circumstances. Week after week, camped out on a loyal Ikea couch, the four of us unfurled the cozy and charming world of Hogwarts. I let the magic of Harry Potter wash over my virgin eyes, embracing my status as Slytherin, wondering what my Patronus would be, questioning the chemistry between Harry Potter and Ginny Weasley, searching Etsy for Dolores Umbridge's cat plates (she's an evil w*tch, but we, unfortunately, share a passion for the colour pink), noting the ridiculous frequency with which the Malfoy family must be booking bleach and tones, missing my girl Moaning Myrtle in the later films, hating Bellatrix Lestrange, and mourning Dobby. I realized, like me, Harry stood out like a sore thumb. He was handed a different mission in life than his peers, and the sooner he accepted it, the better. Embracing all the fractures and fissures on my peculiar path helped me access the precious arsenal of powers it had quietly provided. Harry, too, could have been crushed under the weight of the death of his parents and the enduring neglect of the Dursleys. But many North Stars were placed along his path, offering him a life preserver and a chance at coming into his own despite the challenging hand he was dealt. His power existed both in the acceptance of his destiny and the support of his best friends, Hermione and Ron; the mentorship of his teachers — Professor McGonagall, Dumbledore, Hagrid and even Snape; and the protection he received from Dobby, Fawkes and Mad-Eye. So many magical people (and creatures) stood firmly by him on his long and treacherous quest to destroy Voldemort. As I worked to untangle my labyrinth of tradition and rebellion, inclusion and exclusion, strength and vulnerability, so many people helped illuminate my path to blossoming into the person I wasn't sure I'd have the bravery to become. Much like Harry, the validation I was desperately seeking was closer than it seemed — just beyond the castle gates at Hogwarts. If only I'd known to enroll sooner.
