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SEGMENT INFORMATION | 3 Months Ended
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May 03, 2025
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. 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 $32.2 million for the First Quarter 2025, and accounts for a majority of the Company’s accounts receivable, amounting to $25.2 million as of May 3, 2025. Store Count by Segment As of May 3, 2025, The Children’s Place U.S. had 437 stores and The Children’s Place International had 58 stores. As of May 4, 2024, The Children’s Place U.S. had 455 stores and The Children’s Place International had 63 stores. The tables below present certain segment information for our reportable segments for the periods indicated:
| Thirteen Weeks Ended May 3, 2025
| The Children’s Place U.S. |  | The Children’s Place International (1) |  | Total
| (in thousands)
Net sales | $ | 221,767 |  | $ | 20,358 |  | $ | 242,125
Cost of sales (2) | 153,986 |  | 17,356 |  | 171,342
Selling, general, and administrative expenses (3) | 87,496 |  | 7,404 |  | 94,900
Segment operating loss | $ | (19,715) |  | $ | (4,402) |  | $ | (24,117)
Segment operating loss as a percentage of net sales | (8.9)% |  | (21.6)% |  | (10.0)%
| Thirteen Weeks Ended May 4, 2024
| The Children’s Place U.S. |  | The Children’s Place International (1) |  | Total
| (in thousands)
Net sales | $ | 246,188 |  | $ | 21,690 |  | $ | 267,878
Cost of sales (2) | 159,162 |  | 15,975 |  | 175,137
Selling, general, and administrative expenses (3) | 111,005 |  | 9,724 |  | 120,729
Segment operating loss | $ | (23,979) |  | $ | (4,009) |  | $ | (27,988)
Segment operating income (loss) as a percentage of net sales | (9.7)% |  | (18.5)% |  | (10.4)%
___________________________________________ (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, other administrative expenses, and depreciation and amortization. The table below presents a reconciliation of reportable segment operating loss to Loss before provision for income taxes:
| Thirteen Weeks Ended
| May 3, 2025 |  | May 4, 2024
| (in thousands)
Total segment operating loss | $ | (24,117) |  |  | $ | (27,988) |
Related party interest expense | (1,871) |  |  | (389) |
Other interest expense | (6,701) |  |  | (7,342) |
Interest income | 10 |  |  | 10 |
Loss before provision for income taxes | $ | (32,679) |  |  | $ | (35,709) |
Additional Segment Data
| Thirteen Weeks Ended |  |
| May 3, 2025 |  | May 4, 2024 |  |  |  |
| (in thousands)
Depreciation and amortization: |  |  |  |  |  |  |
The Children’s Place U.S. | $ | 7,656 |  |  | $ | 9,654 |  |  |  |  |
The Children’s Place International | 574 |  |  | 1,981 |  |  |  |  |
Total depreciation and amortization | $ | 8,230 |  |  | $ | 11,635 |  |  |  |  |
Capital expenditures: |  |  |  |  |  |  |
The Children’s Place U.S. | $ | 3,273 |  |  | $ | 4,678 |  |  |  |  |
The Children’s Place International | 140 |  |  | 16 |  |  |  |  |
Total capital expenditures | $ | 3,413 |  |  | $ | 4,694 |  |  |  |  |
| May 3, 2025 |  | February 1, 2025 |  | May 4, 2024
| (in thousands)
Total assets: |  |  |  |  |
The Children’s Place U.S. | $ | 739,736 |  |  | $ | 711,564 |  |  | $ | 807,625 |
The Children’s Place International | 39,866 |  |  | 35,988 |  |  | 40,710 |
Total assets | $ | 779,602 |  |  | $ | 747,552 |  |  | $ | 848,335 |
Long-lived assets: |  |  |  |  |
United States | $ | 264,293 |  |  | $ | 267,751 |  |  | $ | 326,152 |
Canada | 12,739 |  |  | 9,801 |  |  | 11,999 |
Asia | 1,961 |  |  | 1,996 |  |  | 572 |
Total long-lived assets (1) | $ | 278,993 |  |  | $ | 279,548 |  |  | $ | 338,723 |
___________________________________________ (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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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