The Children’s Place Provides Business Update and Details on Phased Store Reopening Plan

SECAUCUS, N.J., May 18, 2020 (GLOBE NEWSWIRE) -- The Children’s Place, Inc. (Nasdaq: PLCE), the largest pure-play children’s specialty apparel retailer in North America, today provided a business update and details on its phased store reopening plan.

Business Update
Total net sales are estimated to have decreased 38 percent to $254 million for the first quarter ended May 2, 2020. To help fulfill its surging online demand, the Company enabled its ship-from-store capabilities in approximately 85 percent of its U.S. stores in late April, which more than doubled its daily shipping capacity. Through Saturday, May 16th, Q2 digital demand is up more than 400 percent.

Liquidity
As of May 2, 2020, the Company had approximately $72 million of cash and cash equivalents with no long-term debt, and $235 million outstanding on its $360 million revolving credit facility, which was increased from $325 million as a result of finalizing an amendment with its lenders on April 24, 2020.

Store Reopening Plan
On Tuesday, May 19, 2020, The Children’s Place is planning to reopen stores in 10 states: Alabama, Arkansas, Idaho, Mississippi, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, and Utah. The Company will continue to reopen stores on a phased timeline, as state and local guidelines and conditions permit, taking an informed, measured approach based on a number of factors. Currently, over 40 percent of the Company’s U.S. stores are in states and counties that have not yet been authorized to reopen to the public.

The health and safety of our customers and our associates remains our highest priority, and we have put the following measures in place in our stores:

• Opening with reduced hours and actively monitoring the flow of customers in stores;
• Installing signage throughout the store encouraging customers to observe social distancing guidelines;
• Installing plexiglass health guard partitions at checkout areas;
• Associates participating in health screening checks before every shift;
• Supplying all associates with face masks to wear during shifts and encouraging customers to wear a face covering while shopping;
• Implementing rigorous cleaning routines and providing hand sanitizer stations in every store;
• Temporarily closing fitting rooms, restrooms and water fountains; and
• Implementing a new return policy whereby returned items are held off the sales floor for a 24 hour period before being eligible for resale.

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