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SAFE HARBOR STATEMENT

Forward Looking Statements

This presentation contains or may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements relating to the Company's strategic initiatives and adjusted net income per diluted share. Forward-looking statements typically are identified by use of terms such as "may," "will," "should," "plan," "project," "expect," "anticipate," "estimate" and similar words, although some forward-looking statements are expressed differently. These forward-looking statements are based upon the Company's current expectations and assumptions

and are subject to various risks and uncertainties that could cause actual results and performance to differ materially. Some of these risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission, including in the "Risk Factors" section of its annual report on Form 10-K for the fiscal year ended January 30, 2021. Included among the risks and uncertainties that could cause actual results and performance to differ materially are the risk that the Company will be unsuccessful in gauging fashion trends and changing consumer preferences, the risks resulting from the highly competitive nature of the Company's business and its dependence on consumer spending patterns, which may be affected by changes in economic conditions, the risks related to the COVID-19 pandemic, including the impact of the COVID-19 pandemic on our business or the economy in general (including decreased customer traffic, schools adopting remote and hybrid learning models, closures of businesses and other activities causing decreased demand for our products and negative impacts on our customers' spending patterns due to decreased income or actual or perceived wealth, and the impact of the CARES Act and other legislation related to the COVID-19 pandemic, and any changes to the CARES Act or such other legislation), the risk that the Company's strategic initiatives to increase sales and margin are delayed or do not result in anticipated improvements, the risk of delays, interruptions and disruptions in the Company's global supply chain, including resulting from COVID-19 or other disease outbreaks, or foreign sources of supply in less developed countries, more politically unstable countries, or countries where vendors fail to comply with industry standards or ethical business practices, including the use of forced, indentured or child labor, the risk that the cost of raw materials or energy prices will increase beyond current expectations or that the Company is unable to offset cost increases through value engineering or price increases, various types of litigation, including class action litigations brought under consumer protection, employment, and privacy and information security laws and regulations, the imposition of regulations affecting the importation of foreign-produced merchandise, including duties and tariffs, and the uncertainty of weather patterns. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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COMPANY OVERVIEW

About Our Business

  • #1 pure playchildren's specialty apparel retailer in North America, offering apparel, footwear, and accessories in sizes 0-22
  • Strength of design, merchandising, and sourcing teams produces a superior product offering
  • Experienced and talented management team, with an average tenure of over seven years, focused on execution and operational excellence
  • Strong brand awareness and market share leader in specialty apparel children's retail

Size and Scale of Our Operations1

703 stores in the United States, Canada and Puerto Rico

Growing e-commerce presence in the U.S. and Canada representing approximately 53% of sales in fiscal 2020 and approximately 44% of sales for year-to-date fiscal 2021

221 international points of distribution in 17countries

1 As of October 30, 2021

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INVESTMENT HIGHLIGHTS

Realizing the benefits of a multi-year business transformation strategy

How We Serve Our Customer

  • Consistently deliver trend-right product with an attractive value proposition leveraging deep knowledge of core customer
  • Leading digital customer experience, with focus on mobile-firstenabled transactions and optimizing interactions with our customers through enhanced brand marketing and personalization
  • Areas of focus: 1) customer insights, 2) customer strategy and 3) digital delivery, including continuing to acquire and retain omni-channel customers

Store Portfolio

  • Accelerated fleet optimization initiatives - as of October 30, 2021 closed 496 stores since 2013, and approximately 50 additional store closures targeted in fiscal 2021. As a result of favorable lease negotiations, the Company is now targeting 275 store closures since the beginning of fiscal 2020, versus the previously announced target of 300 closures.
  • After these closures, we are planning for a steady state annual digital penetration of approximately 50% and expect approximately 75% of our total revenues to be generated outside of our mall stores in fiscal 2022

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STRATEGIC INITIATIVES: THE PATH AHEAD

The pandemic has accelerated our long-standing transformation strategy by approximately

five years with respect to digital transformation and fleet optimization

1 OUR #1 PRIORITY REMAINS SUPERIOR PRODUCT

  • Our market share position, consistent styling, and strong value proposition give us confidence that our brand can thrive in all economic environments

2 SCALING DIGITAL TRANSFORMATION

Supported by accelerated investments from fiscal 2017 to 2020, we achieved one of the highest digital penetrations in the retail industry at 53% of revenue for fiscal 2020

We are implementing key initiatives to scale and optimize our infrastructure to support increased digital

traffic given the continued rapid shift in our customers' shopping patterns to online shopping, a shift that 5

has been accelerated by the COVID-19 pandemic

3 ACCELERATING FLEET OPTIMIZATION

  • A long-term strategic focus on optimum lease term flexibility enabled us to significantly and strategically accelerate store closures, without financial penalty, to address the pandemic-driven consolidation of the brick and mortar channel
  • The Company ended the quarter with 703 stores and square footage of 3.3 million, a decrease of 12.3% compared to the prior year
  • This initiative has greatly reduced our reliance on our brick and mortar channel and we expect our mall- based store portfolio to represent less than 25% of revenue entering fiscal 2022

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Disclaimer

The Children's Place Inc. published this content on 18 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2021 12:52:03 UTC.