The Children's Place, Inc.
Case Overview
Lead Plaintiff Deadline is TODAY
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 04/29/2024 |
Status: | Status: Investigating |
Company Name: | Company Name: The Children's Place, Inc. |
Court: | Court: District of New Jersey |
Case Number: | Case Number: 2:24cv01182 |
Class Period: | Class Period: 03/16/2023 - 02/08/2024 |
Ticker: | Ticker: PLCE |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired The Children's Place, Inc. (“The Children’s Place” or the “Company”) (NASDAQ:PLCE) securities during the period of March 16, 2023 through February 8, 2024, inclusive (“the Class Period”). Investors have until April 29, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On February 9, 2024, The Children’s Place announced its preliminary fourth quarter 2023 financial results. The Company revealed that it now expected fourth quarter net sales between $454 million and $456 million, falling short of previously issued guidance. The Company also disclosed that it would expect to incur an adjusted operating loss in the fourth quarter in range of 9.0% to 8.0% of net sales, which reflected the impact of “lower than expected merchandise margins resulting from more aggressive promotions in an effort to maximize sales, higher than anticipated split shipments to meet customer e-commerce demand, and increased inventory valuation adjustment.” On this news, the price of The Children’s Place shares declined by $7.24 per share, or approximately 36.7%, from $19.75 per share on February 8, 2024 to close at $12.51 on February 9, 2024.
The lawsuit alleges that The Children’s Place failed to disclose to investors: (i) that the Company was engaged in aggressive promotions; (ii) that, as a result, the Company’s inventory values were overstated; (iii) that the foregoing was reasonably likely to have an adverse impact on fiscal 2023 financial results; and (iv) that, as a result of the foregoing, the Company’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On February 9, 2024, The Children’s Place announced its preliminary fourth quarter 2023 financial results. The Company revealed that it now expected fourth quarter net sales between $454 million and $456 million, falling short of previously issued guidance. The Company also disclosed that it would expect to incur an adjusted operating loss in the fourth quarter in range of 9.0% to 8.0% of net sales, which reflected the impact of “lower than expected merchandise margins resulting from more aggressive promotions in an effort to maximize sales, higher than anticipated split shipments to meet customer e-commerce demand, and increased inventory valuation adjustment.” On this news, the price of The Children’s Place shares declined by $7.24 per share, or approximately 36.7%, from $19.75 per share on February 8, 2024 to close at $12.51 on February 9, 2024.
The lawsuit alleges that The Children’s Place failed to disclose to investors: (i) that the Company was engaged in aggressive promotions; (ii) that, as a result, the Company’s inventory values were overstated; (iii) that the foregoing was reasonably likely to have an adverse impact on fiscal 2023 financial results; and (iv) that, as a result of the foregoing, the Company’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.