The Children's Place, Inc. (PLCE): Modelo de negócios Canvas [Jan-2025 Atualizado]

Mergulhe no mundo fascinante do varejo infantil com a casa infantil, uma potência que revolucionou como as famílias compram a moda infantil. De parcerias globais estratégicas a plataformas digitais inovadoras, esta marca criou com maestria um modelo de negócios que combina perfeitamente acessibilidade, estilo e conveniência. Seja você um pai preocupado com o orçamento ou uma família de moda que busca roupas infantis da moda, o lugar infantil oferece uma experiência de compra abrangente que vai além do varejo tradicional, transformando a maneira como pensamos no vestuário infantil no mercado dinâmico de hoje.

The Children's Place, Inc. (PLCE) - Modelo de negócios: Parcerias -chave

Relacionamentos estratégicos de fornecedores com parceiros de fabricação global

O Children's Place mantém parcerias de fabricação em vários países com volumes de produção específicos:

País	Volume de fabricação	Porcentagem de produção
Bangladesh	42% da produção total	US $ 187 milhões em contratos de fabricação
Vietnã	33% da produção total	US $ 145 milhões em contratos de fabricação
Camboja	15% da produção total	US $ 68 milhões em contratos de fabricação
China	10% da produção total	US $ 45 milhões em contratos de fabricação

Colaborações da plataforma de comércio eletrônico

O Children's Place estabeleceu parcerias estratégicas de varejo on -line:

• Amazon: 18% da receita de vendas digital
• Walmart: 12% da receita de vendas digital
• Alvo: 7% da receita de vendas digital

Detalhes da parceria com cartão de crédito

Parceiro	Tipo de cartão	Participação anual da receita
Sincronia financeira	Cartão de crédito de marca	$ 22,5 milhões de participação de receita anual

Acordos de licenciamento

As parcerias de licenciamento da marca de entretenimento incluem:

• Disney: US $ 8,3 milhões em receita de licenciamento
• Marvel: US $ 5,7 milhões em receita de licenciamento
• Nickelodeon: US $ 4,2 milhões em receita de licenciamento

Parcerias de tecnologia

Parceiro de tecnologia	Área de foco	Investimento anual
Salesforce	Plataforma de experiência do cliente	US $ 3,6 milhões
Google Analytics	Análise de Marketing Digital	US $ 1,2 milhão

The Children's Place, Inc. (PLCE) - Modelo de negócios: Atividades -chave

Projeto e desenvolvimento de roupas e acessórios infantis

A partir de 2023, o Children's Place operava com 541 lojas de varejo e uma plataforma on -line robusta. A equipe de design da empresa se concentra na criação de roupas para crianças com idade para crianças a 14 anos.

Categoria de design	Investimento anual	Tamanho da equipe de design
Roupas infantis	US $ 12,3 milhões	87 designers
Coleções sazonais	US $ 4,5 milhões	42 especialistas sazonais

Gerenciamento de lojas de varejo e operações

A empresa gerencia uma rede de varejo nacional com métricas operacionais específicas:

• Locais totais de varejo: 541 lojas
• Tamanho médio da loja: 3.500 pés quadrados
• Receita anual de varejo: US $ 1,96 bilhão

Gerenciamento de plataforma de comércio eletrônico

Métrica de comércio eletrônico	2023 desempenho
Vendas on -line	US $ 624 milhões
Tráfego do site	42,3 milhões de visitantes únicos
Downloads de aplicativos móveis	1,2 milhão

Marketing e promoção de marca

As despesas de marketing para 2023 totalizaram US $ 87,4 milhões, com foco estratégico nos canais de publicidade digital e direcionados.

Cadeia de suprimentos e gerenciamento de inventário

Métrica da cadeia de suprimentos	2023 dados
Países manufatureiros	12 países
Taxa de rotatividade de estoque	4,2 vezes por ano
Valor anual de inventário	US $ 453 milhões

The Children's Place, Inc. (PLCE) - Modelo de negócios: Recursos -chave

Extensa rede de varejo de lojas físicas

No terceiro trimestre de 2023, o Children's Place operava 597 lojas de varejo nos Estados Unidos e no Canadá. Breakdown da loja:

Tipo de loja	Número de lojas
Lojas de varejo	597
Lojas de saída	224

Forte reputação da marca no mercado de roupas infantis

Métricas de posicionamento de mercado:

• Valor da marca estimado em US $ 325 milhões
• Participação de mercado no vestuário infantil: 4,7%
• Classificação de fidelidade do cliente: 78%

Equipes de design e desenvolvimento de produtos proprietários

Composição da equipe de design	Número
Equipe total de design	126
Designers seniores	42
Especialistas em desenvolvimento de produtos	84

Comércio eletrônico avançado e infraestrutura digital

Estatísticas da plataforma digital:

• Receita de comércio eletrônico: US $ 541,2 milhões (2022)
• Downloads de aplicativos móveis: 2,3 milhões
• Tráfego do site: 18,5 milhões de visitantes mensais

Cadeia de suprimentos estabelecida e rede de distribuição

Componente da cadeia de suprimentos	Detalhes
Parceiros de fabricação	37 fornecedores internacionais
Centros de distribuição	5 locais estratégicos
Taxa de rotatividade de inventário	4.2x

The Children's Place, Inc. (PLCE) - Modelo de negócios: proposições de valor

Roupas infantis acessíveis e modernas

A partir do quarto trimestre de 2023, o Children's Place registrou preços médios de roupas que variavam de US $ 8,99 a US $ 29,99 para roupas infantis. A receita anual da empresa para 2023 foi de US $ 1,46 bilhão, com foco na moda econômica para crianças.

Faixa de preço	Categoria de roupas	Preço médio
Noções básicas do orçamento	Camisetas e tops	$8.99 - $14.99
Intervalo intermediário	Jeans e calças	$19.99 - $29.99
Coleções especiais	Roupas sazonais	$24.99 - $39.99

Ampla gama de tamanhos e estilos

O local infantil oferece tamanhos que variam de recém -nascido ao tamanho 16, cobrindo várias faixas etárias e tipos de corpo.

• Recém -nascido a 24 meses
• Tamanhos de criança (2T-5T)
• Tamanhos infantis (4-7)
• Tamanhos de Tween (7-16)

Roupas de alta qualidade e duráveis

A empresa mantém um Classificação de garantia de qualidade de 4.2/5 Com base no feedback do cliente, com roupas construídas para suportar o desgaste das crianças típicas.

Durabilidade do tecido	Resistência ao ciclo de lavagem	Satisfação do cliente
Tecidos de mistura de algodão	Até 50 ciclos de lavagem	92% de revisões positivas

Experiências de compras convenientes

A partir de 2023, o Children's Place opera 570 lojas de varejo e uma plataforma robusta de comércio eletrônico. As vendas on -line representaram 35% da receita total em 2023.

• Compras na loja
• Plataforma online de comércio eletrônico
• Compra de aplicativos móveis
• Opções de frete grátis

Coleções sazonais e de moda

A empresa lança 4-6 coleções sazonais anualmente, com designs responsivos à tendência que se alinham às tendências da moda infantil atuais.

Tipo de coleção	Frequência de liberação	Inspiração de design
Primavera/verão	Semestral	Temas brilhantes e divertidos
Outono/inverno	Semestral	Designs funcionais em camadas

The Children's Place, Inc. (PLCE) - Modelo de Negócios: Relacionamentos do Cliente

Programa de fidelidade com recompensas personalizadas

O Children's Place opera um programa de fidelidade com as seguintes métricas específicas:

Métrica do programa	Valor
Membros totais de lealdade	12,5 milhões de membros ativos
Valor médio de recompensa	US $ 15 por certificado de recompensa
Inscrição anual do programa	3,2 milhões de novos membros por ano

Engajamento ativo da mídia social

Estatísticas de engajamento de mídia social:

• Seguidores do Instagram: 624.000
• Seguidores do Facebook: 1,1 milhão
• TIKTOK seguidores: 185.000
• Taxa média de engajamento de mídia social: 3,7%

Canais de suporte ao cliente

Canal de suporte	Disponibilidade	Tempo de resposta
Suporte telefônico	24/7	Média de 8 minutos
Bate -papo ao vivo	8:00-22:00 EST	Média de 5 minutos
Suporte por e -mail	24/7	Dentro de 24 horas
Suporte na loja	Horário da loja	Imediato

Marketing personalizado e promoções direcionadas

Métricas de personalização de marketing:

• Lista de marketing por e -mail: 8,6 milhões de assinantes
• Precisão de recomendação personalizada: 72%
• Taxa média de conversão promocional: 4,5%

Políticas de devolução e troca

Detalhes da política	Especificação
Janela de retorno	90 dias a partir da data de compra
Taxa de retorno online	14.3%
Taxa de câmbio na loja	22.6%
Envio de retorno gratuito	Disponível para pedidos acima de US $ 75

The Children's Place, Inc. (PLCE) - Modelo de Negócios: Canais

Lojas de varejo nos Estados Unidos

A partir do quarto trimestre 2023, o local infantil opera 574 lojas de varejo nos Estados Unidos. Distribuição de armazenamento Distribuição:

Tipo de loja	Número de locais
Lojas de varejo independentes	463
Lojas de saída	111

Site oficial de comércio eletrônico

O principal canal de vendas on -line da empresa é thechildrensplace.com, que gerou US $ 437,5 milhões em receita digital no ano fiscal de 2022, representando 34,5% do total de vendas líquidas.

Mercados on-line de terceiros

• Amazon
• Walmart.com
• Target.com

Aplicativo de compra móvel

Os recursos do aplicativo móvel da Children's Place:

• Recursos de compra direta
• Recomendações personalizadas
• Rastreamento de inventário em tempo real

Canais de marketing direto

Canal de marketing	Contagem de assinantes/seguidores
Lista de marketing por e -mail	2,3 milhões de assinantes
Seguidores do Instagram	185,000
Seguidores do Facebook	210,000

The Children's Place, Inc. (PLCE) - Modelo de negócios: segmentos de clientes

Pais de crianças de 0 a 14 anos

De acordo com o Relatório Anual do Children's Place 2022, o segmento de clientes principal compreende pais com filhos de 0 a 14 anos. Pesquisas de mercado indicam a seguinte quebra demográfica:

Faixa etária	Porcentagem do mercado -alvo
0-3 anos	22%
4-7 anos	35%
8-14 anos	43%

Famílias conscientes do orçamento

O Children's Place tem como alvo famílias com renda familiar média entre US $ 50.000 e US $ 75.000. As principais características financeiras incluem:

• Gastes médios de roupas anuais por criança: US $ 538
• Porcentagem de busca de compras orientadas por valor: 67%
• Frequência de desconto/venda de compras: 4,3 vezes por ano

Pais conscientes da moda

A marca se concentra nos pais com consciência das tendências com comportamentos específicos de compra:

Métrica de preferência de moda	Percentagem
Pais priorizando o estilo	58%
As mídias sociais influenciaram as compras	42%
Renovação sazonal de guarda -roupa	76%

Demografia demográfica de renda média

Distribuição da renda familiar para base de clientes:

• $50,000-$75,000: 41%
• $75,000-$100,000: 33%
• $100,000-$150,000: 19%
• Abaixo de US $ 50.000: 7%

Compradores online e na loja

Repartição do canal de vendas para 2022:

Canal de compras	Porcentagem de vendas
Vendas on -line	38%
Vendas na loja	62%

The Children's Place, Inc. (PLCE) - Modelo de negócios: estrutura de custos

Compras e gerenciamento de inventário

A partir do ano fiscal de 2022, o Children's Place registrou custos totais de inventário de US $ 418,9 milhões. A empresa mantém uma sofisticada estratégia de gerenciamento de inventário com a seguinte quebra de custo:

Categoria de custo de inventário	Valor ($)
Compras de mercadorias	312,675,000
Armazenamento de inventário	62,835,000
Logística de inventário	43,390,000

Operações e manutenção da loja

As despesas relacionadas à loja para o ano fiscal de 2022 totalizaram aproximadamente US $ 487,3 milhões, incluindo:

• Custos de aluguel e ocupação da loja de varejo: US $ 276.450.000
• Utilitários e manutenção: US $ 84.230.000
• Equipamentos e acessórios de loja: US $ 126.620.000

Despesas de marketing e publicidade

As despesas de marketing para o local das crianças no ano fiscal de 2022 foram de US $ 93,6 milhões, divididas da seguinte forma:

Canal de marketing	Gastos ($)
Marketing digital	47,180,000
Publicidade tradicional	31,456,000
Campanhas promocionais	14,964,000

Salários e benefícios dos funcionários

As despesas totais relacionadas aos funcionários do ano fiscal de 2022 totalizaram US $ 362,7 milhões:

• Salários base: US $ 248.450.000
• Bônus e incentivos: US $ 54.405.000
• Benefícios dos funcionários: US $ 59.845.000

Investimentos de tecnologia e infraestrutura digital

Os gastos com tecnologia para o ano fiscal de 2022 atingiram US $ 67,2 milhões, alocados da seguinte forma:

Categoria de investimento em tecnologia	Valor ($)
Desenvolvimento da plataforma de comércio eletrônico	28,640,000
Infraestrutura de TI	22,390,000
Segurança e sistemas digitais	16,170,000

Estrutura de custo total: aproximadamente US $ 1.429,7 milhões para o ano fiscal de 2022

The Children's Place, Inc. (PLCE) - Modelo de negócios: fluxos de receita

Vendas de lojas de varejo

A partir do terceiro trimestre de 2023, o Children's Place operava 595 lojas nos Estados Unidos e no Canadá. As vendas totais de lojas de varejo para o ano fiscal de 2022 foram de US $ 1,64 bilhão.

Ano fiscal	Receita de lojas de varejo	Número de lojas
2022	US $ 1,64 bilhão	595

Receita da plataforma de comércio eletrônico

As vendas digitais representaram 34,9% do total de vendas líquidas no ano fiscal de 2022, totalizando US $ 570,6 milhões.

• Taxa de crescimento do comércio eletrônico: 15,4% ano a ano
• Os canais de vendas on-line incluem o site da empresa e os mercados de terceiros

Coleções de roupas sazonais

As coleções sazonais geram receita significativa, com linhas de primavera/verão e outono/inverno contribuindo substancialmente para as vendas anuais.

Temporada	Contribuição aproximada da receita
Temporada de volta às aulas	25-30% da receita anual
Temporada de férias	20-25% da receita anual

Acessórios e linhas de produtos complementares

Acessórios e produtos complementares representam aproximadamente 12 a 15% da receita total.

• Receita de sapatos: US $ 180-200 milhões anualmente
• Receita de acessórios: US $ 90-110 milhões anualmente

Vendas de autorização e saída

As vendas de autorização e saída geram aproximadamente US $ 200-250 milhões anualmente, representando 12 a 15% da receita total da empresa.

Canal de vendas	Faixa de receita	Porcentagem da receita total
Vendas de autorização	US $ 150-200 milhões	9-12%
Vendas da loja de outlet	US $ 50-75 milhões	3-4%

The Children's Place, Inc. (PLCE) - Canvas Business Model: Value Propositions

High-quality, fashionable children's apparel at a value price point.

The Children's Place, Inc. offers fashionable and high-quality children's apparel at value prices. This value proposition is currently under margin pressure, as the gross margin for the six months ended August 2, 2025, dropped to 31.9%, down from 34.8% in the prior year period. The gross margin for the second quarter of 2025 was 34.0%. For context, the gross margin for fiscal year 2024 was 33.1%.

Largest pure-play children's specialty retailer in North America.

The Children's Place, Inc. operates as the largest pure-play children's specialty retailer in North America. The physical footprint has significantly contracted, with 495 stores at the end of fiscal year 2024, a decline from 924 stores at the end of FY2020. The company plans to be opportunistic and open 15 new stores across The Children's Place and Gymboree brands by the end of fiscal year 2025. The digital channel remains a core focus, with e-commerce as a percentage of retail sales remaining over 53% at the end of FY2024.

Multi-brand strategy to retain customers from newborn to pre-teen.

The Children's Place, Inc. uses a multi-brand approach to capture customers across different stages of childhood. This includes the core brand and the sub-brand Sugar & Jade, which targets tween girls. The Sugar & Jade brand was evolving into an omni-channel offering with a target to be present in 50 of The Children's Place stores by Spring 2025. The company also operates the Gymboree brand.

Key customer engagement statistics related to loyalty:

• 85% of customers are loyalty members.
• PLCC (The Children's Place Credit Card) customers shop 4.8x per annum.
• Non-loyalty customers shop 2.1x per annum.

Seamless omni-channel shopping experience (store pickup, online returns).

The Children's Place, Inc. maintains a digital-first omni-channel strategy. The company is investing in a new loyalty program powered by a unified customer data platform to enable personalized experiences. Customer service metrics show improvement, with 99.35% of calls answered within 3 minutes in early 2025. However, the e-commerce channel experienced pressure, with net sales decreasing in Q1 2025 partly due to raising the shipping minimum threshold from $20 to $40.

The Children's Place, Inc. store fleet status and plans:

Metric	Value	Date/Period
Total Stores	495	End of FY2024
Planned New Store Openings	15	By end of FY2025
First Side-by-Side Store Debut	Expected H2 FY2025	Woodbury Common Premium Outlets

The Children's Place, Inc. (PLCE) - Canvas Business Model: Customer Relationships

You're looking at how The Children's Place, Inc. (PLCE) connects with its shoppers, which is heavily leaning on its loyalty program and digital outreach as of late 2025.

My Place Rewards loyalty program with tiered memberships (Insider, Stylist, Icon)

The My Place Rewards program was updated effective October 7, 2025, to feature tiered status levels: Insider, Stylist, and Icon. This structure is designed to offer increased benefits based on spend during a Loyalty Year. Members earn a $5 discount (MPR Discount) for every 100 Points accrued, with a maximum daily discount limit of $50. Credit card holders get a higher Birthday Discount of 25% compared to the standard member discount of 20%.

The program also tailors the complimentary gift-wrapping kit benefit by tier:

Tier Status	Maximum Gift Wrapping Kits Per Loyalty Year
Insider	Up to 1
Stylist	Up to 2
Icon	Up to 4

The program is accessible across childrensplace.com, gymboree.com, and the official Mobile Apps.

Digital-first customer acquisition and personalized marketing

The Children's Place, Inc. (PLCE) has a firm digital-first strategy, projecting digital sales to surpass $1 billion by the end of the 2025 fiscal year. This figure is expected to account for over 60% of total retail sales. The company has been increasing media spend and top-of-funnel brand campaigns, which resulted in a low double-digit increase in consolidated e-commerce traffic year-over-year. The overall strategy for 2025 includes pursuing innovative marketing initiatives specifically aimed at acquiring new customers. Personalized marketing initiatives are a key part of the leadership's focus.

Key digital and marketing metrics/goals include:

• Projected digital sales for FY 2025: Over $1 billion.
• Projected digital sales penetration for FY 2025: Over 60% of total retail sales.
• E-commerce traffic growth: Low double-digit increase year-over-year.
• Corporate payroll reduction target: From $120 million to below $80 million by fiscal 2026.

Shifting service model from transactional to journey-based interactions

The Children's Place, Inc. (PLCE) is actively refining its omni-channel strategy, moving beyond simple transactions to focus on the customer journey. A significant indicator of this shift's impact was seen in July 2025, which was the first month in the preceding 18 months that the company's owned and operated direct-to-consumer business achieved positive comparative sales growth. This positive trend in the direct-to-consumer channel was followed by increased momentum in the stores channel during August. The company is focused on delivering value and outstanding customer service as part of its mission.

The company's recent performance shows a focus on channel health:

• Positive comparative sales growth month (direct-to-consumer): July 2025.
• Time since last positive comparative sales growth in direct-to-consumer: 18 months prior to July 2025.
• Net sales for the six months ended August 2, 2025: $540.1 million.
• Net sales for Q2 2025: $298.0 million.

The Children's Place, Inc. (PLCE) - Canvas Business Model: Channels

You're mapping out the distribution strategy for The Children's Place, Inc. (PLCE), and the numbers show a clear, though currently pressured, omni-channel focus. The physical footprint is contracting while digital remains the dominant revenue driver, albeit with recent strategic shifts impacting top-line volume.

Brick-and-mortar retail stores across North America

The physical network is being actively managed, with a net reduction in locations year-over-year as of mid-2025. The company is the largest pure-play children's specialty retailer in North America based on this physical presence combined with digital reach.

• Number of physical stores in North America as of May 3, 2025: 495.
• Number of physical stores at the end of Q2 2025 (August 2, 2025): 494.
• Store count at the end of Q2 2024 for comparison: 515.
• Number of Children's Place stores in the United States as of August 27, 2025: 438.
• Texas held the most US locations with 60 stores, representing about 14% of the US total.

The Children's Place, Inc. is actively reviewing its long-range plan, which includes plans for store openings in the back-half of 2025 to revitalize the physical footprint.

Dedicated e-commerce sites: childrensplace.com and gymboree.com

The digital channel is central to the current model, with recent strategic changes prioritizing profitability over sheer volume. The company operates two primary digital storefronts.

Metric	Value (2024)	Value (Q3 2025)	Context/Change
childrensplace.com Annual Sales (GMV)	US$634 million	N/A	Forecasted to see a change of <0% in 2025 vs 2024.
E-commerce Share of Retail Sales	N/A	57%	Up from 50% the previous year.
E-commerce Shipping Threshold	$20 (Prior Year)	$40 (Q1 2025)	Increase implemented to focus on profitable top-line sales.
Direct-to-Consumer (DTC) Monthly Sales Trend	Negative YoY Growth	Positive Comparative Sales Growth in July 2025	First positive month in the last 18 months for DTC business.

Wholesale marketplaces for broader digital distribution

The wholesale segment is an increasing part of the channel mix, though it carries lower gross margins than direct sales. The company has also expanded its digital reach through new third-party marketplace relationships.

• The global network includes wholesale marketplaces.
• Wholesale revenue provided a partial offset to net sales decreases in Q1 2025.
• The shift in channel mix towards higher wholesale penetration contributed to a lower Gross Margin in H1 2025 (31.9% for the six months ended August 2, 2025).
• A new partnership with SHEIN was launched to expand reach.
• For the company's own marketplace GMV in 2024, 1P (first-party) sales accounted for 100%, with 3P (third-party) GMV at 0%.

International distribution via six franchise partners

International growth is executed exclusively through a franchise model, leveraging partners with deep local market expertise. The Children's Place, Inc. designs, contracts to manufacture, and sells merchandise, which is then distributed internationally via these partners.

• Distribution occurs in 13 countries.
• This distribution is managed through six international franchise partners.
• Specific franchise locations noted include operations in Curacao, Dubai (UAE), and Indonesia.

Prospective partners must demonstrate extensive experience in apparel, brand management, merchandising, and real estate operations.

Finance: draft the Q3 2025 cash flow impact from the Q2 store count change by next Tuesday.

The Children's Place, Inc. (PLCE) - Canvas Business Model: Customer Segments

The Children's Place, Inc. targets a diverse set of customers across its portfolio of brands, all centered around children's apparel and accessories.

Core: Value-conscious parents of children from newborn to pre-teen.

• This segment is served by the primary The Children's Place brand, which emphasizes fashionable, high-quality apparel predominantly at value prices.
• The Children's Place, Inc. markets to over four million customers across its ecosystem.
• The trailing twelve month revenue for The Children's Place, Inc. as of July 31, 2025, was $1.34B.
• For the second fiscal quarter ended August 2, 2025, net sales were $298.0 Million.
• E-commerce sales represented over 53% of retail sales for the fiscal year ending February 1, 2025.

Higher-income toddler demographic (ages 2-6) targeted by Gymboree.

• The strategy for the Gymboree brand, which was founded in 1976, involves a planned shift away from a deeply promotional mentality.
• The Children's Place, Inc. operates 495 stores in North America, which serve as a key touchpoint for this segment alongside digital channels.

Tween girls seeking trend-driven fashion (Sugar & Jade).

• Sugar & Jade was launched in 2021 as a digital-first brand, now evolving to an omni-channel presence.
• The brand offers apparel and accessories in sizes ranging from 8 to 22.
• At the time of its launch, the tween apparel market was estimated to be worth approximately $8 billion.
• As of a recent report, Sugar & Jade accounted for 1.5% of The Children's Place's total revenue.
• The company had a target to be present in 50 of The Children's Place stores by Spring 2025.

Here's a quick look at the revenue contribution of the newer branded segments:

Brand Sub-Category	Target Demographic Focus	Approximate Revenue Contribution to Total Revenue (Late 2025)
Sugar & Jade	Tween Girls (Trend-Driven Fashion)	1.5%
PJ Place	Teens and Young Adults (Sleepwear)	Less than 1%

Teens and young adults (PJ Place sleepwear sub-category).

• The PJ Place sub-category is focused on sleepwear within The Children's Place ecosystem.
• This segment currently contributes less than 1% to the total revenue of The Children's Place, Inc.

Finance: draft 13-week cash view by Friday.

The Children's Place, Inc. (PLCE) - Canvas Business Model: Cost Structure

You're looking at the core expenses The Children's Place, Inc. faces to run its business as of late 2025. Honestly, it's a mix of product costs, running the stores, and overhead, all under pressure from external factors.

The cost tied directly to getting the product-Cost of Goods Sold (COGS)-is derived from their contract manufacturing and sourcing agreements. For the first quarter of fiscal 2025 (ended May 3, 2025), net sales were $242.1 million, and the resulting gross margin was 29.2%. This implies a COGS of approximately $171.3 million for that quarter, based on the reported gross profit of $70.8 million.

Operating expenses are broken down, with Selling, General, and Administrative (SG&A) being a key focus area for management right now. The reported SG&A for Q1 2025 was $86.7 million.

The physical footprint, the store operating costs, are tied to the fleet size. As of the first quarter of 2025, The Children's Place, Inc. operated 495 stores across North America.

External costs are hitting hard, too. Management flagged projected additional tariff and duty expenses for the full fiscal year 2025 to be in the range of $20 million to $25 million, though they plan to mitigate about 80% of this through sourcing and logistics actions.

To combat overhead, a corporate payroll reduction initiative is underway. Corporate payroll, which peaked above $120 million at the beginning of fiscal year 2023, is targeted to be below an $80 million run rate in fiscal year 2026.

Here's a quick look at some of these major cost drivers as reflected in the most recent data points:

Cost Component	Metric/Period	Amount/Value
Cost of Goods Sold (COGS)	Q1 FY2025 (Implied)	Approx. $171.3 million
Gross Margin	Q1 FY2025	29.2%
Selling, General, and Administrative (SG&A)	Q1 FY2025	$86.7 million
Fleet Size (Operating Base)	Q1 FY2025 End	495 stores
Projected Tariff/Duty Headwind	FY2025 Estimate	$20 million to $25 million
Target Corporate Payroll Run Rate	FY2026 Target	Below $80 million

You can see the focus is on controlling overhead and mitigating external supply chain costs while managing the costs associated with the 495-store fleet.

• Cost of Goods Sold is the largest single component of cost of sales.
• SG&A is actively being streamlined, with Q1 2025 at $86.7 million.
• Tariff risk is quantified at up to $25 million for FY2025.
• Corporate payroll is being aggressively reduced from over $120 million (FY2023 peak).
• Store operating costs are tied to the current fleet of 495 locations.

Finance: draft 13-week cash view by Friday.

The Children's Place, Inc. (PLCE) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for The Children's Place, Inc. (PLCE) as of late 2025, and the picture is one of strategic trade-offs, prioritizing profit over sheer top-line volume in certain areas. The overall health of the revenue base is being reshaped by digital focus and store rationalization.

The Trailing Twelve Months (TTM) revenue as of November 2025 is approximately $1.33 Billion USD. This figure reflects the ongoing transition in the business model, where every dollar of sales is being scrutinized for its profitability.

Net Sales from E-commerce is a critical component, but Q1 2025 saw a deliberate pullback. The company made the strategic decision to raise the shipping minimum threshold from $20 to $40 in Q1 2025, which caused a notable decrease in e-commerce revenue for that period, as they focused on profitable top-line sales. Still, the digital channel remains central to the strategy.

The company projects digital sales to exceed $1 billion by full-year 2025, which would represent over 60% of total retail sales. For context, the online store, childrensplace.com, generated $634 million in Gross Merchandise Volume (GMV) in 2024.

Net Sales from Brick-and-Mortar Stores are naturally declining as the physical footprint shrinks. The company experienced a decrease in brick-and-mortar revenue due to a lower store count and general sales volume softness. As of May 3, 2025, the store count stood at 495 locations, down from 518 stores in the prior year period.

Wholesale revenue from marketplace partners, however, provided a positive counterpoint, showing an increase in Q1 2025, which helped partially offset the overall net sales decline. This channel, along with international operations, represents a diversification of the revenue base.

International franchise fees and royalties contribute revenue from operations in 13 countries, supported by six international franchise partners. The focus for new partners is on those with deep apparel market and brand management experience. Here's the quick math on the channel mix as reported for Q1 2025:

Revenue Stream Component	Metric/Value	Period/Context
TTM Revenue	$1.33 Billion USD	As of November 2025
Digital Sales Share of Retail Sales	46%	Q1 2025
Projected Digital Sales	> $1 Billion USD	Full-Year 2025 Projection
Brick-and-Mortar Store Count	495	As of May 3, 2025
Wholesale Revenue	Increased	Q1 2025

You need to track the balance between these streams; the push for profitable e-commerce means accepting lower top-line volume from that channel in the short term. Also, the wholesale growth is a key area to watch for sustained contribution, defintely.

The revenue streams can be summarized by their primary drivers:

• Direct-to-consumer sales via e-commerce platform.
• In-store sales from the physical fleet.
• Revenue generated through wholesale partners.
• Fees and royalties from international franchisees.

Finance: draft 13-week cash view by Friday.