SEGMENT INFORMATION

12 Months Ended

Feb. 03, 2024

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 and www.gymboree.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 customer that individually accounted for more than 10% of its net sales. As of February 3, 2024, The Children’s Place U.S. had 460 stores and The Children’s Place International had 63 stores. As of January 28, 2023, The Children’s Place U.S. had 540 stores and The Children’s Place International had 73 stores.

The following tables provide segment level financial information for Fiscal 2023, Fiscal 2022, and Fiscal 2021:

	Fiscal Years Ended
	February 3, 2024		January 28, 2023		January 29, 2022
	(in thousands)
Net sales:
The Children’s Place U.S.	$	1,457,352	$	1,533,934	$	1,723,887
The Children’s Place International (1)	145,156		174,548		191,477
Total net sales	$	1,602,508	$	1,708,482	$	1,915,364
Operating income (loss):
The Children’s Place U.S.	$	(86,482)	$	(8,781)	$	253,419
The Children’s Place International	2,684		7,251		22,229
Total operating income (loss)	$	(83,798)	$	(1,530)	$	275,648

Operating income (loss) as a percentage of net sales:
The Children’s Place U.S.	(5.9)		%	(0.6)		%	14.7		%
The Children’s Place International	1.8		%	4.2		%	11.6		%
Total operating income (loss) as a percentage of net sales	(5.2)		%	(0.1)		%	14.4		%
Depreciation and amortization:
The Children’s Place U.S.	$	43,428		$	47,612		$	53,984
The Children’s Place International	3,758			3,852			4,433
Total depreciation and amortization	$	47,186		$	51,464		$	58,417
Capital expenditures:
The Children’s Place U.S.	$	27,462		$	44,970		$	28,551
The Children’s Place International	97			607			756
Total capital expenditures	$	27,559		$	45,577		$	29,307

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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.

	February 3, 2024		January 28, 2023
	(in thousands)
Total assets:
The Children’s Place U.S.	$	758,003	$	922,120
The Children’s Place International	42,305		64,161
Total assets	$	800,308	$	986,281

 Geographic Information

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

	February 3, 2024		January 28, 2023
	(in thousands)
Long-lived assets (1):
United States	$	334,425	$	377,388
Canada	13,382		9,883
Asia	375		451
Total long-lived assets	$	348,182	$	387,722

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