NEW YORK, March 07, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired The Children’s Place, Inc. (“The Children’s Place” or the “Company”) (NASDAQ:PLCE) securities during the period of March 16, 2023 through February 8, 2024, inclusive (“the Class Period”). Investors have until April 29, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On February 9, 2024, The Children’s Place announced its preliminary fourth quarter 2023 financial results. The Company revealed that it now expected fourth quarter net sales between $454 million and $456 million, falling short of previously issued guidance. The Company also disclosed that it would expect to incur an adjusted operating loss in the fourth quarter in range of 9.0% to 8.0% of net sales, which reflected the impact of “lower than expected merchandise margins resulting from more aggressive promotions in an effort to maximize sales, higher than anticipated split shipments to meet customer e-commerce demand, and increased inventory valuation adjustment.” On this news, the price of The Children’s Place shares declined by $7.24 per share, or approximately 36.7%, from $19.75 per share on February 8, 2024 to close at $12.51 on February 9, 2024.
The lawsuit alleges that The Children’s Place failed to disclose to investors: (i) that the Company was engaged in aggressive promotions; (ii) that, as a result, the Company’s inventory values were overstated; (iii) that the foregoing was reasonably likely to have an adverse impact on fiscal 2023 financial results; and (iv) that, as a result of the foregoing, the Company’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired The Children’s Place securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
