By Katherine Hamilton

Children's Place recorded lower revenue in its fiscal third quarter as its strategic plan to expand brick-and-mortar sales hit some snags.

The kids' apparel company on Tuesday swung to a loss of $4.3 million, or 19 cents a share, in the quarter, compared with a profit of $20.1 million, or $1.57 a share, a year earlier.

Stripping out certain one-time items, the adjusted per-share loss was 18 cents.

Revenue fell 13% to $339.5 million. Same-store sales fell 5.4%.

The decline was driven by a decrease in wholesale revenue due to lower order commitments as a result of higher purchases earlier in the fiscal year, Children's Place said.

E-commerce sales also fell due to lower traffic and conversion, as the company aims to increase its brick-and-mortar presence, Chief Executive Muhammad Umair said.

Children's Place is moving toward increasing its physical store presence, Umair said. The company opened five new stores in the third quarter and has another 11 openings slated for the current quarter.

The strategy to increase in-person stores created periods of high volatility for its online business, however, Umair said.

Marketing efficiency was impeded during the quarter as Children's Place transitioned to a new agency and heightened promotional strategy, Umair said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

December 16, 2025 16:52 ET (21:52 GMT)

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