Children’s Place Inc

The Children's Place reported a second-quarter net loss of $(31.0) million, or $(1.39) per diluted share, as net sales fell 18.9% to $241.8 million from $298.0 million a year earlier. Comparable retail sales in the company's owned and operated direct-to-consumer business dropped 16.7% for the quarter, which ended August 1, 2026, and gross margin rose 40 basis points to 34.4% only because of $39 million in tariff refunds recognized during the quarter; excluding those refunds, gross margin fell 1,550 basis points. The company opened 19 new stores in the quarter, its most in any quarter since 2013, and closed 2, ending with 514 stores, while inventories fell 23.2% to $340.2 million. President and Interim Chief Executive Officer Muhammad Asif Seemab said the company is evaluating its operating model to improve liquidity, and it hired Alexandra Derner as Chief Growth Officer to lead international expansion including a planned entry into Mexico. For the six months ended August 1, 2026, net sales fell 15.4% to $457.0 million and net loss widened to $(84.1) million, or $(3.79) per diluted share, from $(39.4) million a year earlier.

American Eagle Outfitters and The Children's Place have sold the rights to their federal tariff refunds for pennies on the dollar, accepting immediate cash at a fraction of the claims' face value. American Eagle sold $68.9 million of its refund claims for $18.6 million in cash, while The Children's Place sold $38.2 million of its claims for about $25.7 million, according to Retail Dive. American Eagle has applied for roughly $190 million in tariff refunds and anticipates a $140 million net cash benefit, while The Children's Place has filed claims amounting to approximately $40 million, of which $5.5 million has already been received. Both retailers have been closing stores as part of broader restructuring efforts, with American Eagle reporting total net revenue of $1.2 billion in its first quarter, up 10% from last year, and The Children's Place posting an 11.1% decline in net sales to $215.2 million and an operating loss of $42.2 million. The practice of selling refund rights has become more common as businesses seek liquidity, with inquiries jumping at least 50% since early June, according to a business loan advisory firm.