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Fibre2Fashion Published
December 31, 2025
North American specialty retailer The Children’s Place reported net sales growth of 31.2 per cent to reach $558.2 million in the third quarter of fiscal 2025 from $425.6 million in Q3 FY20. This growth was primarily driven by strong customer response to company’s product assortment and the strategic reset of its pricing and promotions.
Gross profit increased by $98.7 million to $244.8 million in the reporting quarter compared to $146.1 million in the previous year’s quarter. Likewise, adjusted gross profit increased $95.2 million to $245 million and rose 868 basis points to 43.9 per cent of net sales, compared to 35.2 per cent of net sales last year. This growth is a result of significantly higher merchandise margins, resulting from double digit AUR increases, in both its digital and stores channels, due to the strategic reset of pricing and promotions, and lower occupancy expenses due to favorable lease negotiations and permanent store closures.
Operating income increased $90.5 million to $113.8 million in the three months ended October 30, compared to operating income of $23.3 million a year ago. Adjusted operating income also increased $85.1 million to $116.5 million. Net income also increased $65.6 million to $78.9 million or $5.30 per diluted share, in the third quarter.
“We delivered another outstanding quarter with sales, gross margin, operating margin and EPS all at record levels. To help put the magnitude of our turnaround into perspective, our Q3 2025 adjusted operating income of $117 million exceeded our Full Year 2025 adjusted operating income of $111 million. The significant structural changes we made to our business in 2025, combined with the accelerated digital investments we made pre-pandemic, continue to propel our results.” Jane Elfers, president and CEO, said.
“While we are only a few weeks in, Q4 is off to a very strong start. We continue to operate at a high level, while navigating the ever-changing Covid landscape. We look forward to continuing to deliver accelerated operating margin expansion for 2025 and beyond,” Elfers concluded.