PLCE Stock Tumbles 32% After Earnings Slump — Here’s How Trump’s Tariffs Hurt Its Bottom Line

Children's Place reported an adjusted net loss of $0.18 per diluted share compared with a street expectation of $0.70 earnings per share.

• Children’s Place attributed the results to challenges in its e-commerce business and marketing inefficiencies, as well as the impact of tariff pressures on its bottom line. 
• The company expects incremental expenses of $15 million to $20 million in 2025 due to tariffs. 
• Children’s Place also anticipates an additional $25 million to $30 million tariff-related impact in the first half of 2026.

Children’s Place Inc. (PLCE) shares tumbled over 32% in Wednesday’s premarket trade after the company reported a loss in the third quarter.

While the children’s clothing retailer directly attributed the disappointing results to challenges in its e-commerce business and marketing inefficiencies, it also highlighted the impact of tariff pressures on its bottom line in 2025.

Children’s Place posted an adjusted net loss of $0.18 per share for the third quarter (Q3) 2025, compared to the street consensus of an earnings per share of $0.70 according to Fiscal.ai estimates, marking a significant miss. The company’s Q3 revenue of $339.5 million was 13% lower than in the same quarter last year, while comparable retail sales fell 5.4%.

Weight Of Trump Tariffs

Muhammad Umair, President and Chief Executive Officer of Children’s Place, said that the company’s third quarter results “reflect the challenges” that it is experiencing in its e-commerce business, while also adding that marketing inefficiencies have impeded its results.

Separately, Umair noted that Trump-era tariffs have continued to exert pressure on the company’s bottom line. Both store sales and e-commerce sales were negatively impacted in 2025 due to macroeconomic pressures, including uncertainty about tariffs. The company believes this dampened consumer sentiment.

Moreover, the Children’s Place expects tariff changes to result in incremental expenses of about $15 million to $20 million in 2025. Looking ahead, the company expects an additional $25 million to $30 million tariff-related impact in the first half of 2026, although it expects a majority of these expenses to be offset through strategic initiatives.

Gross margin also decreased 240 basis points (bps) to 33.1% for the quarter, with a 55-bps decline attributed to higher tariffs, the company said.

President Donald Trump’s tariffs introduced in 2025, primarily on Chinese imports, have increased costs for a range of U.S. businesses, including retailers.

How Did Stocktwits Users React?

On Stocktwits, the retail sentiment around PLCE jumped to ‘extremely bullish’ from ‘bullish’ levels from a day ago, and message volume remained ‘extremely high’.

One user noted how the removal of tariffs could send PLCE shares ‘to the moon’.

Shares of PLCE have lost more than 34% in the past year.

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