Here's How Children's Place (PLCE) is Tackling Coronavirus Scares

The Children’s Place, Inc. PLCE recently issued another business update related to the coronovirus outbreak, including extension of its store closure plans. The company stated that it will prolong its store closure plan across the United States and Canada till further notice. Incidentally, Children’s Place had shut down all its stores across these regions effective Mar 18.

In the recent press release, management highlighted that store sales were expected to contribute nearly 65% to first-quarter fiscal 2020 revenues, with a major portion of sales coming in during the months of March and April. Nevertheless, Children’s Place informed shoppers that they can continue purchasing the company’s products online at and Quarter to date, the company’s digital demand was up by double digits when compared with the year-ago period’s levels.

We note that the coronavirus pandemic has infected more than 800,000 people worldwide and the death toll has crossed 40,000. Retailers have been facing the brunt of the alarming spread of the novel coronavirus. The retail sector is under major pressure with companies shutting stores, limiting store hours and withdrawing their guidance. In fact, companies are bound to keep stores shut for extended durations as the situation keeps getting worse with each day.

Well, other companies like Kohl's Corporation KSS, Nordstrom, Inc. JWN and  Guess?, Inc. GES have taken similar steps to extend their store closure plans and contain the further spread of the deadly coronavirus.

Meanwhile, Children’s Place has temporarily furloughed all the United States and Canada field management and store associates effective April 5. Moreover, the company will undertake pay reduction for majority of its corporate staff. Nevertheless, management stated that they will continue to support furloughed associates by providing then with health benefits.

Further, the company is on track with reducing its expenses and capital expenditure during the coronavirus crisis. Also, Children’s Place is planning to draw down from its revolving credit facility in an attempt to provide added $50 million liquidity amid the current situation. Further, the company temporarily suspended its capital return program that includes share repurchases and dividends. Management in its lastearnings callstated that it has deferred the guidance for fiscal 2020 in the wake of the prevailing uncertainty surrounding the coronavirus outbreak.

We note that shares of this Zacks Rank #5 (Strong Sell) company have slumped 72.6% in the past three months compared with the industry’s decline of 50.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Guess?, Inc. (GES): Free Stock Analysis Report
Nordstrom, Inc. (JWN): Free Stock Analysis Report
Kohl's Corporation (KSS): Free Stock Analysis Report
The Children's Place, Inc. (PLCE): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.