Financial Analysis

COMMITMENTS AND CONTINGENCIES Commitments The Company enters into contractual obligations and commitments that may require future cash payments. These obligations include debt repayments, standby letters of credit and operating lease liabilities. For additional information, refer to Note 7. Leases and Note 8. Debt of the Consolidated Financial Statements. The Company enters into various purchase order commitments with its suppliers. For certain suppliers, the Company has the ability to cancel these arrangements, although in some of these instances, the Company may either continue to be liable for payment of the entirety of the purchase order commitment despite cancellation, or be subject to a termination charge reflecting a percentage of work performed prior to cancellation. As of January 31, 2026, these purchase order commitments for the next 12 months for merchandise for re-sale amounted to approximately $121.1 million. Legal and Regulatory Matters The Company is a defendant in Gabriela Gonzalez v. The Childrens Place, Inc. , a purported class action, pending in the U.S. District Court, Central District of California. The plaintiff alleged that the Company had falsely advertised discounts that do not exist, in violation of Californias Unfair Competition Laws, False Advertising Law and the California Consumer Legal Remedies Act. The Company filed a motion to compel arbitration, which the plaintiff did not oppose, and the court granted the motion on August 17, 2022staying the …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT ABL Credit Facility The Company and certain subsidiaries maintain the $350.0 million asset-based revolving credit facility (the ABL Credit Facility) under its Amended and Restated Credit Agreement dated May 9, 2019 (as amended from time to time, the Credit Agreement), with Wells Fargo Bank, National Association (Wells Fargo), as the sole lender party thereto, and as Administrative Agent, Collateral Agent, and Swing Line Lender. The ABL Credit Facility will mature on the earlier of December 16, 2030, or the maturity date under the Companys term loan agreement with SLR Credit Solutions (SLR) as further described below. Previously, from April 18, 2024 to December 15, 2025, the ABL Credit Facility included a $25.0 million Canadian sublimit and a $25.0 million sublimit for standby and documentary letters of credit. As of December 16, 2025, which is the effective date of the eighth amendment to the Credit Agreement (the Eighth Amendment), the ABL Credit Facility includes a $25.0 million Canadian sublimit and a $30.0 million sublimit for standby and documentary letters of credit. Previously, from February 4, 2025 to December 15, 2025, on the first day of each fiscal quarter within that period, based on the amount of the Companys average daily excess availability under the facility, borrowings outstanding under the ABL Credit Facility bore interest, at the Companys option, at: (i) the prime rate per annum, plus a margin of 1.750% or 2.000%; or (ii) the Secured Overnight Financin …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the Companys net sales disaggregated by geography: Fiscal Years Ended January 31, 2026 February 1, 2025 February 3, 2024 (in thousands) South 444,264 $ 502,042 $ 586,370 Northeast 236,040 254,521 304,554 West 151,942 166,234 208,249 Midwest 128,827 147,308 185,126 International and other (1) 247,757 316,164 318,209 Total net sales $ 1,208,830 $ 1,386,269 $ 1,602,508 ____________________________________________ (1) Includes retail and e-commerce sales in Canada and Puerto Rico, wholesale and international partner sales, and certain amounts earned under the Companys private label credit card program. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

STOCK-BASED COMPENSATION The Company generally grants time vesting stock awards (Deferred Awards) and performance-based stock awards (Performance Awards) to employees at senior management levels. The Company also grants Deferred Awards to its non-employee independent directors. Deferred Awards are granted in the form of restricted stock units that require each recipient to complete a service period. Performance Awards are granted in the form of restricted stock units which have performance criteria that must be achieved for the awards to vest in addition to a service period requirement, and each Performance Award has a defined number of shares that an employee can earn (the Target Shares). With the approval of the Human Capital & Compensation Committee, the Company may settle vested Deferred Awards and Performance Awards in shares, in a cash amount equal to the market value of such shares at the time all requirements for delivery of the award have been met, or in part shares and cash. In Fiscal 2024, there was a change of control of the Company, which triggered a conversion of all then-outstanding Performance Awards into service-based Performance Awards in accordance with their terms. As a result, the Fiscal 2023, fiscal year 2022, and fiscal year 2021 Performance Awards will all vest or have vested, as applicable, at their Target Shares on their respective vesting dates without regard to the achievement of any of the performance metrics associated with those awards, prov …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENT FASB ASC 820 Fair Value Measurement provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. This topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities Level 2 - inputs to the valuation techniques that are other than quoted prices, but are observable for the assets or liabilities, either directly or indirectly Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities The Companys cash and cash equivalents and investments in the rabbi trust are short-term in nature. As such, their carrying amounts approximate fair value. These assets and liabilities fall within Level 1 of the fair value hierarchy. The Company stock included in the Deferred Compensation Plan is not subject to fair value measurement. The fair value of the Initial Mithaq Term Loan with a carrying value (gross of debt issuance costs) of $18.4 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES The components of Loss before provision (benefit) for income taxes were as follows: Fiscal Years Ended January 31, 2026 February 1, 2025 February 3, 2024 (in thousands) Domestic $ (96,584) $ (58,830) $ (156,703) Foreign 6,299 9,382 42,905 Total loss before provision (benefit) for income taxes $ (90,285) $ (49,448) $ (113,798) The components of the Companys Provision (benefit) for income taxes consisted of the following: Fiscal Years Ended January 31, 2026 February 1, 2025 February 3, 2024 (in thousands) Current: Federal $ (4,127) $ 4,812 $ (1,239) State and local (286) 1,120 249 Foreign 2,972 2,439 4,758 Total current provision (benefit) (1,441) 8,371 3,768 Deferred: Federal (643) 21,125 State and local 62 13,019 Foreign 2,831 Total deferred provision (benefit) (581) 36,975 Total provision (benefit) for income taxes $ (2,022) $ 8,371 $ 40,743 Effective tax rate 2.2 % (16.9) % (35.8) % On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act allows net operating losses (NOLs) incurred in taxable years 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to offset 100% of taxable income and to generate a refund of previously paid income taxes. Pursuant to the CARES Act, the Company carried back the taxable year 2020 tax loss of $150.0 million to prior years. As of January 31, 2026, the remaining income tax receivable of $19.1 million is in …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The following components of lease expense were recognized in the Companys Consolidated Statements of Operations: Fiscal Years Ended January 31, 2026 February 1, 2025 February 3, 2024 (in thousands) Fixed operating lease cost $ 86,676 $ 90,129 $ 91,066 Variable operating lease cost 20,395 24,425 44,195 Total operating lease cost $ 107,071 $ 114,554 $ 135,261 The following table provides the weighted-average remaining lease term of the Companys operating leases, the weighted-average discount rate used to calculate the Companys operating liabilities, cash paid for amounts included in the measurement of the Companys operating lease liabilities, and ROU assets obtained in exchange for the Companys new operating lease liabilities: Fiscal Years Ended January 31, 2026 February 1, 2025 Weighted-average remaining lease term 4.8 years 4.3 years Weighted average discount rate 8.8 % 8.1 % Cash paid for amounts included in the measurement of operating lease liabilities (in thousands) $ 72,306 $ 79,108 ROU assets obtained in exchange for new operating lease liabilities (in thousands) $ 77,502 $ 71,826 As of January 31, 2026, the maturities of operating lease liabilities were as follows: January 31, 2026 (in thousands) 2026 $ 69,992 2027 44,689 2028 31,226 2029 23,603 2030 16,549 Thereafter 36,858 Total operating lease payments 222,917 Less: imputed interest (45,271) Present value of operating lease liabilities $ 177,646 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Standards Updates Accounting Pronouncement Recently Adopted In December 2023, the FASB issued Accounting Standards Update No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures, (ASU 2023-09). The amendments in ASU 2023-09 were designed to enhance the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation, and income taxes paid disaggregated by jurisdiction. The Company adopted ASU 2023-09 on a prospective basis and is effective for the Fiscal 2025 consolidated financial statements, and subsequent interim periods. The adoption of ASU 2023-09 expanded our disclosures, but did not have a material impact on our consolidated financial statements. Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued Accounting Standards Update No. 2024-03 Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40), (ASU 2024-03). The amendments in ASU 2024-03 are designed to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods with fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RETIREMENT AND SAVINGS PLANS 401(k) Plan The Company has adopted The Childrens Place 401(k) Savings Plan (the 401(k) Plan), which qualifies under Section 401(k) of the Internal Revenue Code of 1986, as amended (the Code). The 401(k) Plan is a defined contribution plan established to provide retirement benefits for employees. The 401(k) Plan is employee funded up to an elective annual deferral amount and also provides for Company matching contributions up to a certain percentage of the employees salary. The 401(k) Plan is available for all U.S. employees of the Company. The Company matches the first 3% of the participants contributions and 50% of the next 2% of the participants contributions, and the Companys matching contribution vests immediately. The Companys matching contributions were $3.2 million in Fiscal 2025, $3.4 million in Fiscal 2024, and $4.0 million in Fiscal 2023. Deferred Compensation Plan The Deferred Compensation Plan liability, excluding Company stock, was $1.1 million at January 31, 2026 and February 1, 2025, respectively. The value of the assets held in the rabbi trust was $1.1 million at January 31, 2026 and February 1, 2025, respectively. The cost of the Companys stock repurchased was $0.1 million at January 31, 2026 and February 1, 2025, respectively. Other Plans Under statutory requirements, the Company contributes to retirement plans for its operations in Canada, Puerto Rico, and Asia. Contributions under these plans were $0.7 million, $0.5 million, a …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUES The following table presents the Companys net sales disaggregated by geography: Fiscal Years Ended January 31, 2026 February 1, 2025 February 3, 2024 (in thousands) South 444,264 $ 502,042 $ 586,370 Northeast 236,040 254,521 304,554 West 151,942 166,234 208,249 Midwest 128,827 147,308 185,126 International and other (1) 247,757 316,164 318,209 Total net sales $ 1,208,830 $ 1,386,269 $ 1,602,508 ____________________________________________ (1) Includes retail and e-commerce sales in Canada and Puerto Rico, wholesale and international partner sales, and certain amounts earned under the Companys private label credit card program. …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION The Companys reportable segments are based on the financial information the chief operating decision maker (CODM) uses to allocate resources and assess performance of its business. The Companys President and Chief Executive Officer is the CODM. The Companys CODM evaluates the performance of each segment and measures its segment profitability based on operating income (loss), defined as income (loss) before interest and taxes. Operating income (loss) is used as a key metric during the annual budget process, and on a quarterly basis to monitor actual performance against the annual budget and forecasts. The Company reports segment data based on geography: The Childrens Place U.S. and The Childrens Place International. Each segment includes an e-commerce business located at www.childrensplace.com and www.gymboree.com . Included in The Childrens Place U.S. segment are the Companys U.S. and Puerto Rico-based stores and net sales from the Companys U.S.-based wholesale business. Included in The Childrens Place International segment are the Companys Canadian-based stores and net sales from international franchisees. Net sales and direct costs are recorded by each segment. Certain inventory procurement functions, such as production and design, as well as corporate overhead, including executive management, finance, real estate, human resources, legal, and information technology services, are managed by The Childrens Place U.S. segment. Expenses related to these funct …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

STOCKHOLDERS DEFICIT Rights Offering On February 6, 2025, the Company completed its Rights Offering pursuant to which the Company distributed to the holders of record of the Companys Common stock as of the close of business on December 13, 2024, the record date for the Rights Offering, non-transferable subscription rights to purchase, in the aggregate, up to 9.2 million shares of Common stock. Each subscription right entitled its holder to purchase 0.7220 shares of Common stock at a subscription price of $9.75 per whole share of Common stock. Additionally, rights holders who fully exercised their basic subscription rights were entitled to subscribe for additional shares of Common stock that remained unsubscribed as a result of any unexercised basic subscription rights. The subscription price was payable by rights holders (i) in cash, (ii) by delivery in lieu of cash of an equivalent amount of any indebtedness for borrowed money (principal and/or accrued and unpaid interest) owed by the Company to such rights holder, or (iii) by delivery of a combination of cash and such indebtedness. Upon the completion of the Rights Offering, the Company issued 9.2 million shares of Common stock for a total purchase price of $90.0 million. Mithaq purchased 6.7 million shares of Common stock pursuant to the Rights Offering. It paid (i) $5.1 million of the subscription price for such shares in cash and (ii) the remaining $60.2 million of the subscription price for such shares by delivery of in …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS On February 5, 2026, the Company entered into a Receivables Purchase Agreement (the RPA) with TRMEF Basis II LLC (TRMEF) to sell its CARES Act income tax receivable of $19.1 million plus accrued interest of $3.7 million at a purchase rate of 88.5%, for a total purchase price of $20.1 million. The Company received net cash proceeds of $15.9 million, after insurance and legal fees amounting to $0.7 million. The remaining proceeds of $3.5 million are expected to be received in two tranches as follows: (i) upon confirmation by the IRS of submission by the IRS of the Revenue Agent Report to the Joint Committee on Taxation, TRMEF shall pay $2.5 million to the Company, less the amount of any downward adjustments in respect of the tax refund claim set forth in such Revenue Agent Report, and (ii) on the date on which TRMEF receives payment in full in cash of the refund claim, TRMEF shall pay $1.0 million to the Company, less 10% of accrued interest as of the effective date of the RPA. The Company used the net proceeds from the sale of its income tax receivable to partially pay down its borrowings under the ABL Credit Facility. On March 31, 2026, the Company entered into a Claim Sale and Purchase Agreement with Alnus Investors, LLC (Alnus) to sell its claims for refunds of tariffs previously paid to the U.S. Customs and Border Protection, related to those tariffs originally invoked under the International Emergency Economics Powers Act of 1977, for which such tariffs …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES The Company is a defendant in Gabriela Gonzalez v. The Childrens Place, Inc. , a purported class action, pending in the U.S. District Court, Central District of California. The plaintiff alleged that the Company had falsely advertised discounts that do not exist, in violation of Californias Unfair Competition Laws, False Advertising Law and the California Consumer Legal Remedies Act. The Company filed a motion to compel arbitration, which the plaintiff did not oppose, and the court granted the motion on August 17, 2022staying the case pending the outcome of the arbitration. The demand for arbitration was filed on October 4, 2022, in connection with the individual claim of the plaintiff. A mass arbitration firm associated with plaintiffs counsel then conducted an advertising campaign for claimants to conduct a mass arbitration. In part, to avoid the mass arbitration, the parties stipulated to return the original plaintiffs claim to court to proceed as a class action. Accordingly, the arbitration would not be proceeding and the Companys response to the original plaintiffs complaint in court was filed on July 20, 2023. On August 16, 2023, however, the Company began to receive notices regarding an initial tranche of approximately 1,300 individual demands that were filed with Judicial Arbitration and Mediation Services, Inc. (JAMS) as part of a related mass arbitration claim. The parties participated in mediation proceedings on November 15, 2023 and F …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT ABL Credit Facility The Company and certain subsidiaries maintain the $350.0 million asset-based revolving credit facility (the ABL Credit Facility) under its Amended and Restated Credit Agreement dated May 9, 2019 (as amended from time to time, the Credit Agreement), with Wells Fargo Bank, National Association (Wells Fargo), as the sole lender party thereto, and as Administrative Agent, Collateral Agent, and Swing Line Lender. The ABL Credit Facility will mature on the earlier of December 16, 2030, or the maturity date under the Companys term loan agreement with SLR Credit Solutions (SLR) as further described below. As of December 16, 2025, which is the effective date of the eighth amendment to the Credit Agreement (the Eighth Amendment), the ABL Credit Facility includes a $25.0 million Canadian sublimit and a $30.0 million sublimit for standby and documentary letters of credit. As of February 1, 2026, and on the first day of each fiscal quarter thereafter, based on the amount of the Companys average daily excess availability under the facility, borrowings outstanding under the ABL Credit Facility bear interest, at the Companys option at: (i) the prime rate per annum, plus a margin of 1.000%, 1.250% or 1.500%; or (ii) the Secured Overnight Financing Rate (SOFR) per annum, plus a margin of 2.000%, 2.250% or 2.500%. As of April 18, 2024, based on the size of the unused portion of the commitments, the Company is charged a fee ranging from 0.250% to 0.375%. As of February 1 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the Companys net sales disaggregated by geography: Thirteen Weeks Ended May 2, 2026 May 3, 2025 (in thousands) South $ 77,222 $ 85,657 Northeast 46,714 45,854 West 26,895 27,741 Midwest 23,476 25,920 International and other (1) 40,918 56,953 Total net sales $ 215,225 $ 242,125 ____________________________________________ (1) Includes retail and e-commerce sales in Canada and Puerto Rico, wholesale and franchisee sales, and certain amounts earned under the Companys private label credit card program. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

STOCK-BASED COMPENSATION The Company generally grants time-vesting stock awards (Deferred Awards) and performance-based stock awards (Performance Awards) to employees at senior management levels. The Company also grants Deferred Awards to its non-employee independent directors. The following table summarizes the Companys stock-based compensation expense (benefit): Thirteen Weeks Ended May 2, 2026 May 3, 2025 (in thousands) Deferred Awards $ 96 $ 1,239 Performance Awards (521) 507 Total stock-based compensation expense (benefit) (1) $ (425) $ 1,746 ___________________________________________ (1) Stock-based compensation expense (benefit) recorded within Cost of sales (exclusive of depreciation and amortization) amounted to $(0.2) million and $0.3 million in the First Quarter 2026 and First Quarter 2025, respectively. All other stock-based compensation expense (benefit) is included in Selling, general, and administrative expenses. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENT The Companys cash and cash equivalents and investments in the rabbi trust are short-term in nature. As such, their carrying amounts approximate fair value. These assets and liabilities fall within Level 1 of the fair value hierarchy. The Company stock included in the deferred compensation plan is not subject to fair value measurement. The fair value of the Initial Mithaq Term Loan with a carrying value (gross of debt issuance costs) of $18.4 million as of May 2, 2026, was approximately $11.9 million. The fair value of the New Mithaq Term Loan with a carrying value (gross of debt issuance costs) of $92.7 million as of May 2, 2026, was approximately $87.1 million. The fair value of the Mithaq Term Loans was estimated using a market approach, which considers the Companys credit risk and market related conditions, and is therefore within Level 2 of the fair value hierarchy. The carrying amount of the Companys remaining short-term and long-term borrowings, which are considered Level 2 liabilities, approximates fair value based on current rates and terms available to the Company for similar debt. The Companys non-financial assets measured at fair value on a nonrecurring basis include long-lived assets, such as intangible assets, fixed assets, and ROU assets. The Company reviews the carrying amounts of such assets when events indicate that their carrying amounts may not be recoverable. Any resulting asset impairment would require that the asset be recorded at …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES The Company utilizes the asset and liability method of accounting for income taxes as set forth in FASB ASC 740 Income Taxes . Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities, as well as for net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using currently enacted tax rates applied to taxable income in effect for the years in which the basis differences and tax assets are expected to be realized. The Companys provision for income taxes was $1.3 million during the First Quarter 2026 and the First Quarter 2025. The Companys effective tax rate was (2.5)% in the First Quarter 2026, compared to (4.1)% in the First Quarter 2025. The change in the effective tax rate is primarily due to a higher pretax loss during the First Quarter 2026 compared to the First Quarter 2025. The Company continues to adjust its valuation allowance based upon its ongoing operating results. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act allows net operating losses (NOLs) incurred in taxable years 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to offset 100% of taxable income and to generate a refund of previously paid income taxes. Pursuant to the CARES Act, the Company carried back the t …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company has operating leases for retail stores, corporate offices, distribution facilities, and certain equipment. The Companys leases have remaining lease terms ranging from less than one year up to eleven years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the lease early. The Company records all occupancy costs in Cost of sales, except costs for administrative office buildings, which are recorded in Selling, general, and administrative expenses. As of the periods presented, the Companys finance leases were not material to the Consolidated Balance Sheets, Consolidated Statements of Operations, or Consolidated Statements of Cash Flows. The following components of operating lease expense were recognized in the Companys Consolidated Statements of Operations: Thirteen Weeks Ended May 2, 2026 May 3, 2025 (in thousands) Fixed operating lease cost $ 19,821 $ 21,199 Variable operating lease cost 6,357 5,759 Total operating lease cost $ 26,178 $ 26,958 The following table provides the weighted-average remaining lease term of the Companys operating leases, the weighted-average discount rate used to calculate the Companys operating liabilities, cash paid for amounts included in the measurement of the Companys operating lease liabilities, and right-of-use (ROU) assets obtained in exchange for the Companys new operating lease liabilities: Thirteen Weeks Ended May 2, 2026 May 3, 2025 Weighted-average re …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Standards Updates Accounting Pronouncement Recently Adopted In December 2023, the FASB issued Accounting Standards Update No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures, (ASU 2023-09). The amendments in ASU 2023-09 were designed to enhance the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation, and income taxes paid disaggregated by jurisdiction. The Company adopted ASU 2023-09 on a prospective basis and is effective for the Fiscal 2025 consolidated financial statements, and subsequent interim periods. The adoption of ASU 2023-09 expanded the Companys disclosures, but did not have a material impact on its consolidated financial statements. Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued Accounting Standards Update No. 2024-03 Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40), (ASU 2024-03). The amendments in ASU 2024-03 are designed to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods with fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating t …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUES The following table presents the Companys net sales disaggregated by geography: Thirteen Weeks Ended May 2, 2026 May 3, 2025 (in thousands) South $ 77,222 $ 85,657 Northeast 46,714 45,854 West 26,895 27,741 Midwest 23,476 25,920 International and other (1) 40,918 56,953 Total net sales $ 215,225 $ 242,125 ____________________________________________ (1) Includes retail and e-commerce sales in Canada and Puerto Rico, wholesale and franchisee sales, and certain amounts earned under the Companys private label credit card program. Revenues are recognized when control of the promised goods or services is transferred to the Companys customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company recognizes revenue, including shipping and handling fees billed to customers, as applicable, upon purchase at the Companys retail stores or when received by the customer if the product was purchased via e-commerce, net of coupon redemptions and anticipated sales returns. The Company deferred sales of $4.3 million, $6.3 million, and $7.6 million within Accrued expenses and other current liabilities as of May 2, 2026, January 31, 2026, and May 3, 2025, respectively, based upon estimated time of delivery, at which point control passes to the customer. Sales tax collected from customers is excluded from revenue. For its wholesale business, the Company recognizes revenue, when title of the goods passes to …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION The Companys reportable segments are based on the financial information the chief operating decision maker (CODM) uses to allocate resources and assess performance of its business. The Companys President and Chief Executive Officer is the CODM. The Companys CODM evaluates the performance of each segment and measures its segment profitability based on operating income (loss), defined as income (loss) before interest and taxes. Operating income (loss) is used as a key metric during the annual budget process, and on a quarterly basis to monitor actual performance against the annual budget and forecasts. The Company reports segment data based on geography: The Childrens Place U.S. and The Childrens Place International. Each segment includes an e-commerce business located at www.childrensplace.com and www.gymboree.com . Included in The Childrens Place U.S. segment are the Companys U.S. and Puerto Rico-based stores and net sales from the Companys U.S.-based wholesale business. Included in The Childrens Place International segment are the Companys Canadian-based stores and net sales from international franchisees. Net sales and direct costs are recorded by each segment. Certain inventory procurement functions, such as production and design, as well as corporate overhead, including executive management, finance, real estate, human resources, legal, and information technology services, are managed by The Childrens Place U.S. segment. Expenses related to these funct …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

STOCKHOLDERS EQUITY (DEFICIT) Share Repurchase Program In November 2021, the Companys board of directors authorized a $250.0 million share repurchase program (the Share Repurchase Program). Under this program, the Company may repurchase shares on the open market at current market prices at the time of purchase or in privately negotiated transactions. The timing and actual number of shares repurchased under the program will depend on a variety of factors, including price, corporate and regulatory requirements, and other market and business conditions. The Company may suspend or discontinue the program at any time and may thereafter reinstitute purchases, all without prior announcement. Currently, pursuant to the terms of the Companys Credit Agreement and SLR Loan Agreement, the repurchase of any shares would require fulfilling stringent payment conditions under those agreements, except that repurchases of shares as described below, pursuant to the Companys practice as a result of its insider trading policy, are expressly permitted. As of May 2, 2026, there was $156.1 million remaining availability under the Share Repurchase Program. Pursuant to the Companys practice, including due to restrictions imposed by the Companys insider trading policy during black-out periods, the Company withholds and repurchases shares of vesting stock awards and makes payments to taxing authorities as required by law to satisfy the withholding tax requirements of all equity award recipients. The Com …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing