Children's Place Presents Balanced Upside/Downside Skew Ahead of Q2 Results, UBS Securities Says

12:13 PM EDT, 09/09/2026 (MT Newswires) -- Children's Place (PLCE) presents a balanced upside/downside skew around its upcoming Q2 financial results, with channel checks indicating sales trends remained soft during the quarter, UBS Securities said in a note Tuesday. Data suggests the company's US store customers were down roughly 10% year over year in Q2, while web traffic data indicated mixed trends, analysts wrote. The brokerage lowered its estimates and now expects Q2 adjusted loss of $0.93 per share from its prior outlook of a loss of $0.90, and anticipates sales to decline 9.9% to $268 million, compared with earlier forecast of $271 million. UBS also models a 250 basis-point gross margin contraction to 31.5% due to tariff and higher distribution costs, as well as a ramp in promotions. Children's Place is expected to post its Q2 results this week, but is not expected to hold an earnings call or issue guidance, according to the note. For fiscal 2026, the brokerage said Children's Place is unlikely to take market share amid pressure from cost-saving initiatives, stiff competition, and soft e-commerce traffic. UBS Securities reiterated its neutral rating on the stock and lowered its price target to $3.25 from $4.00 per share. Shares of Children's Place were down 6.3% in Wednesday trading. Price: 2.62, Change: -0.18, Percent Change: -6.27