James Chartier

Marni Shapiro

- The Children's Place (PLCE) is implementing a **new strategy** under a **new leadership team**, following **Mithaq Capital's majority ownership acquisition** in early 2024, aimed at long-term sustainable growth.  **[1041859_2147287_1]** **[1041859_2147287_6]** 
- A **transformation program** is underway, projected to yield **$40 million in benefits** over three years, reaching a **$40 million run rate by fiscal 2027**, partly by reducing home office payroll to under an **$80 million run rate by fiscal 2026**.  **[1041859_2147287_4]** **[1041859_2147287_5]** **[1041859_2147287_6]** 
- The strategy focuses on four pillars: customer engagement, strengthening brand emotional connection, product innovation (including **licensed partnerships** with brands like Hello Kitty and Lionel Messi), and expanding distribution channels.  **[1041859_2147287_1]** **[1041859_2147287_3]** 
- In Q2 FY2025, sales declined **6.8%**  **[1041859_2147287_3]** , an improvement from Q1's **9.6% decline**  **[1041859_2147287_3]** , with **July marking the first year-over-year sales growth in 18 periods** due to a strong back-to-school season.  **[1041859_2147287_3]**  Gross profit margin was down **100 basis points**.  **[1041859_2147287_4]** 
- The company is stabilizing its store fleet, planning **new store openings** in the second half of the year, and committing to **longer-term leases** to enhance brand awareness and customer acquisition.  **[1041859_2147287_5]** **[1041859_2147287_8]**

Childrens Place (PLCE)