<SEC-DOCUMENT>0001104659-20-126836.txt : 20210211
<SEC-HEADER>0001104659-20-126836.hdr.sgml : 20210211
<ACCEPTANCE-DATETIME>20201118160128
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ACCESSION NUMBER:		0001104659-20-126836
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20201118

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Childrens Place, Inc.
		CENTRAL INDEX KEY:			0001041859
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-FAMILY CLOTHING STORES [5651]
		IRS NUMBER:				311241495
		FISCAL YEAR END:			0201

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		500 PLAZA DRIVE
		CITY:			SECAUCUS
		STATE:			NJ
		ZIP:			07094
		BUSINESS PHONE:		2015582400

	MAIL ADDRESS:	
		STREET 1:		500 PLAZA DRIVE
		CITY:			SECAUCUS
		STATE:			NJ
		ZIP:			07094

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHILDRENS PLACE RETAIL STORES INC
		DATE OF NAME CHANGE:	19970702
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">November 18, 2020</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">United States Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Division of Corporation Finance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">100 F Street, N.E.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Washington D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Attention: Scott Stringer and Rufus Decker&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><B>Re:</B></TD><TD STYLE="text-align: justify"><B>The Children&rsquo;s Place, Inc.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: 0pt"><B>Form 10-K
for the Fiscal Year Ended February 1, 2020 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><B>Filed March 19, 2020</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify"><B>Form 8-K Filed August 25, 2020</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: 0pt"><B>File No.
000-23071</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dear Messrs. Stringer and Decker:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Set forth below are the responses of The
Children&rsquo;s Place, Inc. (the &ldquo;Company&rdquo;) to the comments of the Staff of the Securities and Exchange Commission
contained in the letter to Michael Scarpa dated November 6, 2020 (the &ldquo;Letter&rdquo;). For your convenience, we have included
the text of your comments set forth in italics.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Form 8-K Filed August 25, 2020</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Non-GAAP Reconciliation, page 2</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 13.5pt"><I>1.</I></TD><TD STYLE="text-align: justify"><I>Your non-GAAP results include adjustments for occupancy charges at stores temporarily closed
and payroll and benefits for store employees during the period stores were closed. It appears that these are normal, recurring,
cash operating expenses. Please tell us how you considered the guidance in Question 100.01 of the Non-GAAP Financial Measures Compliance
and Disclosure Interpretations. In addition, since inventory provisions are typically recurring costs that are based on a variety
of factors, tell us how you considered the guidance in Question 100.04 of the Non-GAAP Financial Measures Compliance and Disclosure
Interpretations in adjusting for an inventory provision due to COVID-19. Also, explain in detail how the amount of the inventory
provision directly related to COVID-19 was objectively determinable and why it could not be partially attributed to other market
factors and conditions.</I></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>Response:</B> We acknowledge
the Staff&rsquo;s comments and have reviewed Questions 100.01 and 100.04 of the Non-GAAP Compliance and Disclosure Interpretations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In March 2020, an outbreak of
a new strain of coronavirus (&ldquo;COVID-19&rdquo;) was declared a global pandemic by the World Health Organization and a national
emergency by the President of the United States. The COVID-19 pandemic resulted in federal, state, and local governments and private
entities mandating various restrictions, including closures of businesses and other activities, travel restrictions, restrictions
on public gatherings, stay-at-home orders and advisories, quarantining of people who may have been exposed to the virus, and the
adoption of remote or hybrid learning models for schools, among other life-changing measures. The COVID-19 pandemic has significantly
negatively affected the global economy, and created significant disruption of all retail and other markets, including a significant
disruption in consumer demand for children&rsquo;s clothing, footwear and accessories &ndash; the business of The Children&rsquo;s
Place. We view the significant adverse effects of the COVID-19 global pandemic to be on such a scale as to be a once in a lifetime
occurrence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">When presenting our non-GAAP
measures in our public disclosures, we adhere to our documented and consistently applied non-GAAP policy, which is strictly based
on SEC guidance. Our non-GAAP policy stipulates that we make adjustments to our GAAP results only for items that are not reflective
of the performance of our core business. By providing this supplemental disclosure to our investors, we believe that we facilitate
a more accurate reflection of our performance in relation to our core business. We continually assess: (i) the usefulness of the
non-GAAP measures; (ii) the consistency of the non-GAAP measures as applied between different periods; and (iii) whether the non-GAAP
measures would be misleading to investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In adhering to our policy described
above, we determined that: (i) occupancy charges at stores temporarily closed and payroll and benefits for store employees who
were not providing services during the period stores were closed due to federal, state, and local government orders and health
regulations during the COVID-19 pandemic and (ii) inventory provisions resulting from the extraordinary effects of the COVID-19
pandemic, are all expenses that are not normal and are non-recurring. We come to that conclusion because those expenses emanate
from a circumstance the United States and Canada have never faced before. No retailer in these locations has ever been ordered
by federal, state, and local government and health officials to close all of their retail store operations due to a pandemic, we
have never compensated employees without receiving the benefit of their service, nor have we paid or incurred rent charges for
spaces that we could not inhabit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In particular, the occupancy
charges that we excluded from our non-GAAP measures were amounts that are contractually specified and objectively determinable
rent charges recognized in accordance with ASC 842 at stores where we were unable to operate for their intended use, and the payroll
and other benefits that we excluded from our non-GAAP measures are specifically documented for tax and other purposes and also
objectively determinable. Additionally, the Company has never voluntarily compensated employees without receiving the benefit of
their service and believe that such circumstances are akin to severance charges that are recorded as restructuring charges, which
we have a past practice of excluding from our non-GAAP measures. We consider the COVID-19 pandemic to be an extraordinary, one-time,
non-recurring event and believe the exclusion of these items from our non-GAAP results is appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><U>Inventory Provision Due to COVID-19</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As noted above, it was mandated
by various governing authorities that we suspend all retail store operations in&nbsp;the United States&nbsp;and&nbsp;Canada&nbsp;beginning&nbsp;March
18, 2020. At that time, our stores&rsquo; inventory was comprised of highly seasonal product to support our spring and Easter selling
seasons. Our stores remained closed to the public for approximately three months, some longer, during which time we were unable
to access or sell the highly seasonal product stranded in our stores during the historical window of time that these products would
have otherwise been sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Upon gaining access to our stores,
but before being able to open to the public, we were forced to liquidate an unprecedented amount of inventory by fulfilling online
demand from our stores in order to meet working capital needs and create space needed for incoming current seasonal goods. As a
result, we liquidated these products at markdown levels far deeper than our historical markdown rates and shipped this inventory
from our retail stores directly to our customers to fulfill their online orders. This in and of itself was a significant departure
from our normal operational activities leading to the incurrence of significantly higher fulfillment costs and sales at losses
versus our normal shipments from a highly automated distribution center, resulting in a lower of cost or market reserve under ASC
330. In a non-pandemic environment, we would not have elected to execute sales in such a costly manner. Further, we also made the
decision to donate $11 million of highly seasonal and Easter product to a national charity, inconsistent with our past practices
and which we took as a part of our COVID-19 inventory-related charge.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As previously referenced in our
public filings under Critical Accounting Policies, our lower of cost or net realizable value reserves have typically ranged from
$1.4 million to $4.3 million based on historical markdown rates. Accordingly, the difference between our normal historical reserve
levels and our current period reserve was objectively determinable, and we recorded the $63.2 million non-GAAP adjustment to our
inventory provision due to the COVID-19 pandemic and resulting conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> We believe the inventory
provision due to COVID-19 is not normal and non-recurring, is not reflective of the performance of our core business, and
facilitates a more accurate comparison of past and present performance of our core business. The inventory provision due to
COVID-19 was objectively determinable and would not have been incurred in a non-pandemic environment; had we been able to
operate our stores in any normal circumstances, we would have been able to sell through our inventory in accordance with our
normal sell-down cadence, avoiding the significant and unprecedented amount of inventory backlog, markdowns taken and
extraordinary costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Lastly, it is important to note
that when we present our non-GAAP measures, our policy directs us to strictly adhere to the prominence guidance set forth by the
SEC. Our non-GAAP disclosures, including those presented in our Form 8-K filed on August 25, 2020, are preceded by the comparable
GAAP measures in both the headlines of our earnings releases and within the text of the earnings release itself, and to ensure
our presentation of non-GAAP financial measures is not misleading under Regulation G, we provide a full tabular reconciliation
of the non-GAAP measures to the comparable GAAP measures. Further, we provide a detailed description of non-GAAP items that are
excluded in our non-GAAP measures, including the items referenced in the Staff&rsquo;s comments for which we provided expanded
disclosure in our press release filed as an exhibit to the August 25<SUP>th</SUP> Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe the responses above fully address
the comments contained in the Letter. Please email me at <FONT STYLE="color: Blue"><U>mscarpa@childrensplace.com</U></FONT> if
you have any questions regarding the above or require any additional information or details.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 351pt; text-align: justify">&nbsp;</P>

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    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 30%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Very truly yours,</FONT></TD>
    <TD STYLE="width: 20%; text-align: justify">&nbsp;</TD></TR>
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    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
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    <TD STYLE="text-align: justify">&nbsp;</TD>
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    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Michael Scarpa</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael Scarpa</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">cc:</TD><TD STYLE="text-align: justify">Jane T. Elfers</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">Robert Helm</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">Bradley P. Cost, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"></P>

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