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The Children's Place Reports Record First Quarter 2021 Results TCP investor.childrensplace.com/news-releases/news-release-details/childrens-place-reports-record-first-quarter 2021 - results May 20 , 2021 Reports Q1 GAAP Earnings per Diluted Share of $ 3.01 versus a Loss per Diluted Share of $ ( 7.86 ) in Q1 2020 Reports Q1 Adjusted Earnings per Diluted Share of $ 3.25 versus an Adjusted Loss per Diluted Share of $ ( 3.33 ) in Q1 2020 SECAUCUS , N.J. , May 20 , 2021 ( GLOBE NEWSWIRE ) -- The Children's Place , Inc. ( Nasdaq : PLCE ) , the largest pure - play children's specialty apparel retailer in North America , today announced financial results for the first quarter ended May 1 , 2021 . Jane Elfers , President and Chief Executive Officer announced , " We delivered outstanding first quarter results with gross margin , operating margin , and EPS all at record levels . Our Q1 2021 net sales of $ 435 million exceeded our pre - COVID Q1 2019 net sales of $ 412 million , despite having 261 or 27 % fewer stores ending Q1 2021 versus Q1 2019. " Ms. Elfers continued , " All key metrics across both our digital and stores channels exceeded expectations . Our top line results were driven by several factors , including double digit increases in AUR versus Q1 2020 , resulting from strong product acceptance , higher price realization , reduced promotional activity , and unprecedented stimulus , as well as an acceleration in back - to - school sales , our ability to retain new digital customers we acquired during the pandemic , and a significant reactivation of store customers that we had temporarily lost during the government - mandated closure of all of our stores . Our record gross margin was driven by significantly higher merchandise margins versus Q1 2020 in both our digital and stores channels , significant occupancy savings from favorable lease negotiations and fewer stores , and meaningful e - commerce fulfillment optimization . " Ms. Elfers cont ed , " We leveraged a very difficult period in 2020 to accelerate our strategic transformation and we are now well positioned for accelerated operating margin expansion in 2021 and beyond . The acceleration of our digital business , our highest operating margin channel , made possible by our pre - pandemic digital transformation investments , combined with the significant sales transfer rate we are achieving from our strategic decision to close 300 , or a third , of our stores in less than 20 months , is resulting in an industry leading approximately 50 % steady state annual digital penetration . Our long - standing fleet optimization strategy enables us to close the 300 stores , without financial penalty , and reset our occupancy costs . These occupancy cost reductions should continue to be a significant operating margin tailwind throughout 2021 and beyond . In addition , by aligning our overhead cost structure in 2020 to our digital first 1/13