SEGMENT INFORMATION

12 Months Ended

Jan. 28, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

In accordance with FASB ASC 280—Segment Reporting, the Company reports segment data based on geography: The Children’s Place U.S. and The Children’s Place International. Each segment includes an e-commerce business located at www.childrensplace.com, www.gymboree.com, www.sugarandjade.com, and www.pjplace.com. Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico-based stores and revenue from the Company’s U.S.-based wholesale business. Included in The Children’s Place International segment are the Company’s Canadian-based stores, revenue from the Company’s Canadian-based wholesale business, and revenue from international franchisees. The Company measures its segment profitability based on operating income, defined as income before interest and taxes. 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 Children’s Place U.S. segment. Expenses related to these functions, including depreciation and amortization, are allocated to The Children’s Place International segment based primarily on net sales. The assets related to these functions are not allocated. The Company periodically reviews these allocations and adjusts them based upon changes in business circumstances. Net sales to external customers are derived from merchandise sales, and the Company has no customers that individually account for more than 10% of its net sales. As of January 28, 2023, The Children’s Place U.S. had 540 stores and The Children’s Place International had 73 stores. As of January 29, 2022, The Children’s Place U.S. had 589 stores and The Children’s Place International had 83 stores.

The following tables provide segment level financial information for Fiscal 2022, Fiscal 2021, and Fiscal 2020:

	Fiscal Years Ended
	January 28, 2023		January 29, 2022		January 30, 2021
	(in thousands)
Net sales:
The Children’s Place U.S.	$	1,533,934	$	1,723,887	$	1,372,079
The Children’s Place International (1)	174,548		191,477		150,519
Total net sales	$	1,708,482	$	1,915,364	$	1,522,598
Operating income (loss):
The Children’s Place U.S.	$	(8,781)	$	253,419	$	(196,565)
The Children’s Place International	7,251		22,229		(3,350)
Total operating income (loss)	$	(1,530)	$	275,648	$	(199,915)

Operating income (loss) as a percentage of net sales:
The Children’s Place U.S.	(0.6)		%	14.7		%	(14.3)		%
The Children’s Place International	4.2		%	11.6		%	(2.2)		%
Total operating income (loss) as a percentage of net sales	(0.1)		%	14.4		%	(13.1)		%
Depreciation and amortization:
The Children’s Place U.S.	$	47,612		$	53,984		$	61,074
The Children’s Place International	3,852			4,433			5,331
Total depreciation and amortization	$	51,464		$	58,417		$	66,405
Capital expenditures:
The Children’s Place U.S.	$	44,970		$	28,551		$	29,955
The Children’s Place International	607			756			630
Total capital expenditures	$	45,577		$	29,307		$	30,585

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(1)Net sales from The Children’s Place International are primarily derived from Canadian operations. The Company’s foreign subsidiaries, primarily in Canada, have operating results based in foreign currencies and are thus subject to the fluctuations of the corresponding translation rates into U.S. dollars.

	January 28, 2023		January 29, 2022
	(in thousands)
Total assets:
The Children’s Place U.S.	$	922,120	$	951,401
The Children’s Place International	64,161		86,059
Total assets	$	986,281	$	1,037,460

 Geographic Information

The Company’s long-lived assets were located in the following countries:

	January 28, 2023		January 29, 2022
	(in thousands)
Long-lived assets (1):
United States	$	377,388	$	415,548
Canada	9,883		16,868
Asia	451		397
Total long-lived assets	$	387,722	$	432,813

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(1)The Company’s long-lived assets are comprised of net Property and equipment, ROU assets, Tradenames, and Other assets.