Children's Place, Inc. (NASDAQ:PLCE) shares are trading higher on Tuesday following the announcement of preliminary partial fourth-quarter results for the six-week period from November 3 to December 14, 2024. The company reported a 3.4% increase in net sales year-over-year.
This uptick also represents a positive shift compared to the year-to-date performance seen during the third quarter of fiscal 2024.
However, while overall net sales showed growth, the company experienced challenges in specific sales channels.
Brick-and-mortar revenue decreased due to a lower store count. Comparable retail sales dropped by 8.9% for the six-week period. A reduction in e-commerce sales largely drove this decline, as the company took steps to improve profitability by scaling back unprofitable promotional strategies, Children's Place said in a press release.
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On a positive note, wholesale revenue increased, helping to offset declines in other areas.
It's important to note that these preliminary results are unaudited and subject to change, as they reflect only part of the fourth quarter's performance, the company said.
Earlier this month, the company declared third-quarter results where net sales decreased 18.8% to $390.2 million.
In the third quarter, comparable retail sales decreased 17.1% largely driven by the planned decrease in e-commerce revenue, as the company proactively sacrificed unprofitable sales to improve profitability.
Price Action: PLCE shares are trading higher by 6.37% to $11.61 at last check Tuesday.
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