The Children’s Place (PLCE) investor relations material

Executive summary

• Entered into a new $100 million term loan with SLR Credit Solutions and refinanced the ABL Credit Facility, reducing it to $350 million and lowering interest rates.

• Third quarter results impacted by ecommerce volatility and marketing transition, while brick-and-mortar comparable sales grew 2% year-over-year.

• Five new stores opened in Q3, with 11 more planned for Q4 and 15–20 additional stores in H1 2026 to drive growth.

• Strategic transformation includes merchandising reset, store layout refresh, and loyalty program revamp.

• Completed $450M refinancing: $350M asset-based credit facility and $100M FILO term loan, increasing borrowing capacity and liquidity.

Financial highlights

• Q3 net sales fell 13.0% year-over-year to $339.5M, driven by lower wholesale and ecommerce revenue.

• Q3 comparable retail sales decreased 5.4%.

• Q3 gross profit dropped to $112.3M (down $26.0M), with gross margin down 240 bps to 33.1%.

• Q3 operating income was $3.7M, down from $29.3M last year; adjusted operating income was $4.0M vs. $35.3M.

• Q3 net loss was $(4.3)M, or $(0.19) per diluted share, compared to net income of $20.1M, or $1.57 per share, last year.

Capital allocation and financing

• The $100 million SLR term loan is secured by a first priority interest in intellectual property, real estate, and other assets, and is prepayable with certain premiums.

• Proceeds from the SLR term loan were used to partially pay down the ABL Credit Facility.

• Refinancing improved liquidity by $35–$40M on a proforma basis at Q3 end.

• Total liquidity at Nov 1, 2025: $93.4M (cash, revolver, and Mithaq facility).

• $297.2M outstanding on revolving credit facility; no draw on Mithaq facility.