Sales of The Children’s Place grew 31 per cent in the third quarter. Growth was primarily driven by strong customer response to the company’s product assortment and the strategic reset of its pricing and promotions. Adjusted gross profits rose 868 basis points to 43 per cent of net sales compared to 35 per cent of net sales last year.

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. The North American specialty retailer delivered another outstanding quarter with sales, gross margin, operating margin and EPS all at record levels.

To help put the magnitude of this turnaround into perspective, the third quarter adjusted operating income exceeded the brand’s full year 2019 adjusted operating income. The significant structural changes made to the business in 2020, combined with the accelerated digital investments made pre-pandemic, continue to propel The Children’s Place’s results. Meanwhile the fourth quarter is off to a very strong start for the brand, which continues to operate at a high level, while navigating the Covid landscape.