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SEGMENT INFORMATION
 6 Months Ended
Aug. 01, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company’s reportable segments are based on the financial information the chief operating decision maker (“CODM”) uses to allocate resources and assess performance of its business. The Company’s President and Interim Chief Executive Officer is the CODM. The Company’s CODM evaluates the performance of each segment and measures its segment profitability based on operating income (loss), defined as income (loss) before interest and taxes. Operating income (loss) is used as a key metric during the annual budget process, and on a quarterly basis to monitor actual performance against the annual budget and forecasts.
In accordance with FASB ASC 280 — Segment Reporting, the Company reports segment data based on geography: The Children’s Place U.S. and The Children’s Place International. Each segment includes an e-commerce business located at www.childrensplace.com and www.gymboree.com. Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico-based stores and net sales from the Company’s U.S.-based wholesale business. Included in The Children’s Place International segment are the Company’s Canadian-based stores and net sales from international franchisees. Net sales and direct costs are recorded by each segment. Certain inventory procurement functions, such as production and design, as well as corporate overhead, including executive management, finance, real estate, human resources, legal, and information technology services, are managed by The Children’s Place U.S. segment. Expenses related to these functions, including depreciation and amortization, are allocated to The Children’s Place International segment based primarily on net sales. The assets related to these functions are not allocated. The Company periodically reviews these allocations and adjusts them based upon changes in business circumstances.
Major Customers
Net sales to external customers are derived from merchandise sales, and the Company has one U.S. wholesale customer that individually accounted for more than 10% of its Net sales amounting to $25.1 million for the Second Quarter 2026, and $42.3 million and $74.5 million for the Second Quarter 2025 and Year-To-Date 2025, respectively. The customer also accounted for a majority of the Company’s accounts receivable, amounting to $19.2 million, $13.7 million, and $31.8 million as of August 1, 2026, January 31, 2026, and August 2, 2025.
Store Count by Segment
As of August 1, 2026, The Children’s Place U.S. had 458 stores and The Children’s Place International had 56 stores. As of August 2, 2025, The Children’s Place U.S. had 437 stores and The Children’s Place International had 57 stores.
The tables below present certain segment information, including significant segment expenses, for our reportable segments for the periods indicated:
Thirteen Weeks Ended August 1, 2026
The Children’s
Place U.S.
The Children’s Place International (1)
Total
Net sales$220,116$21,684$241,800
Cost of sales (exclusive of depreciation and amortization) (2)
139,07619,446158,522
Selling, general, and administrative expenses (3)
82,8047,25790,061
Depreciation and amortization5,8583966,254
Segment operating loss$(7,622)$(5,415)$(13,037)
Segment operating loss as a percentage of net sales(3.5)%(25.0)%(5.4)%
Twenty-six Weeks Ended August 1, 2026
The Children’s
Place U.S.
The Children’s Place International (1)
Total
Net sales$415,407$41,618$457,025
Cost of sales (exclusive of depreciation and amortization) (2)
281,10839,289320,397
Selling, general, and administrative expenses (3)
163,85815,067178,925
Depreciation and amortization12,10681412,920
Segment operating loss$(41,665)$(13,552)$(55,217)
Segment operating loss as a percentage of net sales(10.0)%(32.6)%(12.1)%
Thirteen Weeks Ended August 2, 2025
The Children’s
Place U.S.
The Children’s Place International (1)
Total
Net sales$273,187$24,819$298,006
Cost of sales (exclusive of depreciation and amortization) (2)
178,61418,120196,734
Selling, general, and administrative expenses (3)
81,2648,33289,596
Depreciation and amortization7,0255457,570
Segment operating income (loss)$6,284$(2,178)$4,106
Segment operating income (loss) as a percentage of net sales2.3%(8.8)%1.4%
Twenty-six Weeks Ended August 2, 2025
The Children’s
Place U.S.
The Children’s Place International (1)
Total
Net sales$494,954$45,177$540,131
Cost of sales (exclusive of depreciation and amortization) (2)
332,60035,476368,076
Selling, general, and administrative expenses (3)
161,10415,162176,266
Depreciation and amortization14,6811,11915,800
Segment operating loss$(13,431)$(6,580)$(20,011)
Segment operating loss as a percentage of net sales(2.7)%(14.6)%(3.7)%
__________________________________________
(1)The Company’s foreign subsidiaries, primarily in Canada, have operating results based in foreign currencies and are thus subject to the fluctuations of the corresponding translation rates into U.S. dollars.
(2)Cost of sales includes the cost of inventory sold, certain buying, design, and distribution expenses, shipping and handling costs on merchandise sold directly to customers, and all occupancy costs, except for administrative office buildings.
(3)Selling, general, and administrative expenses include store expenses, marketing, corporate payroll, including long-term incentive compensation, information technology, and other administrative expenses.
The table below presents a reconciliation of reportable segment operating income (loss) to Loss before provision (benefit) for income taxes:
Thirteen Weeks EndedTwenty-six Weeks Ended
August 1,
2026		August 2,
2025		August 1,
2026		August 2,
2025
(in thousands)
Total segment operating income (loss)$(13,037)$4,106 $(55,217)$(20,011)
Related party interest expense(2,099)(1,868)(4,041)(3,740)
Other interest expense(16,193)(6,167)(23,948)(12,867)
Interest income40 17 48 27 
Loss before provision (benefit) for income taxes$(31,289)$(3,912)$(83,158)$(36,591)
Additional Segment Data
Thirteen Weeks EndedTwenty-six Weeks Ended
August 1,
2026		August 2,
2025		August 1,
2026		August 2,
2025
(in thousands)
Capital expenditures:
The Children’s Place U.S.$4,005 $1,134 $11,919 $4,407 
The Children’s Place International1,659 296 1,779 436 
Total capital expenditures$5,664 $1,430 $13,698 $4,843 
August 1,
2026		January 31,
2026		August 2,
2025
(in thousands)
Total assets:
The Children’s Place U.S.$705,625 $631,198 $760,234 
The Children’s Place International36,682 39,101 44,863 
Total assets$742,307 $670,299 $805,097 

Long-lived assets:
United States$300,841 $258,645 $247,040 
Canada10,568 10,615 11,848 
Asia4,803 3,042 2,354 
Total long-lived assets (1)
$316,212 $272,302 $261,242 
___________________________________________
(1)The Company’s long-lived assets are comprised of net Property and equipment, ROU assets, Tradenames, and Other assets, and are recorded in the long-term assets section of the consolidated balance sheets.