Bill McColl

Mon, Jun 9, 2025, 7:45 AM1 min read

• The Children's Place said economic conditions and concerns about tariffs led consumers to reduce their spending.

• The children's products retailer posted a loss that was three times wider than estimates, and revenue and comparable sales declined as well.

• The company warned the current retail environment is hurting results.

The Children’s Place (PLCE) shares plunged 30% Monday after the kids' products retailer significantly missed financial forecasts as customers concerned about economic conditions and tariffs pulled back spending.

The owner of the Gymboree and Sugar & Jade brands late Friday reported an adjusted first-quarter loss of $1.52 per share, three times wider than the average estimate of analysts surveyed by Visible Alpha. Revenue fell nearly 10% year-over-year to $242.1 million, also short of expectations.

Comparable sales slumped almost 14%, which The Children’s Place blamed mainly on a drop in e-commerce revenue.

Interim CEO Muhammad Umair said the company's performance remains 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." Umair added that 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."

Umair explained that the company sees continued sales pressure throughout the year.

Shares of The Children’s Place have lost more than half their value in 2025. 

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