CHILDRENS PLACE, INC. MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS. (Form 10-Q)

This Quarterly Report on Form 10-Q contains or may contain forward-looking
statements made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, including but not limited to statements relating
to the Company's strategic initiatives and adjusted net income per diluted
share. Forward-looking statements typically are identified by use of terms such
as "may," "will," "should," "plan," "project," "expect," "anticipate,"
"estimate" and similar words, although some forward-looking statements are
expressed differently. These forward-looking statements are based upon the
Company's current expectations and assumptions and are subject to various risks
and uncertainties that could cause actual results and performance to differ
materially. Some of these risks and uncertainties are described in the Company's
filings with the Securities and Exchange Commission, including in the "Risk
Factors" section of its annual report on Form 10-K for the fiscal year ended
January 29, 2022. Included among the risks and uncertainties that could cause
actual results and performance to differ materially are the risk that the
Company will be unsuccessful in gauging fashion trends and changing consumer
preferences, the risks resulting from the highly competitive nature of the
Company's business and its dependence on consumer spending patterns, which may
be affected by changes in economic conditions, the risks related to the COVID-19
pandemic, including the impact of the COVID-19 pandemic on our business or the
economy in general (including decreased customer traffic, schools adopting
remote and hybrid learning models, closures of businesses and other activities
causing decreased demand for our products and negative impacts on our customers'
spending patterns due to decreased income or actual or perceived wealth, and the
impact of legislation related to the COVID-19 pandemic, including any changes to
such legislation), the risk that the Company's strategic initiatives to increase
sales and margin are delayed or do not result in anticipated improvements, the
risk of delays, interruptions and disruptions in the Company's global supply
chain, including resulting from the COVID-19 pandemic or other disease
outbreaks, foreign sources of supply in less developed countries, more
politically unstable countries, or countries where vendors fail to comply with
industry standards or ethical business practices, including the use of forced,
indentured or child labor, the risk that the cost of raw materials or energy
prices will increase beyond current expectations or that the Company is unable
to offset cost increases through value engineering or price increases, various
types of litigation, including class action litigations brought under consumer
protection, employment, and privacy and information security laws and
regulations, the imposition of regulations affecting the importation of
foreign-produced merchandise, including duties and tariffs, and the uncertainty
of weather patterns. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date they were made. The
Company undertakes no obligation to release publicly any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.

The following discussion should be read in conjunction with the Company's
unaudited financial statements and notes thereto included elsewhere in this
Quarterly Report on Form 10-Q and the annual audited financial statements and
notes thereto included in the Company's Annual Report on Form 10-K for the year
ended January 29, 2022.

Terms commonly used in our MD&A on financial condition and results of operations are defined as follows:

• First quarter 2022 – Thirteen weeks ended April 30, 2022

• First quarter 2021 – Thirteen weeks ended May 1, 2021

• Fiscal Year 2022 – 52 weeks end January 28, 2023

• Fiscal 2021 – 52 weeks ended January 29, 2022

• DRY – US Securities and Exchange Commission

• US GAAP – Generally accepted accounting principles in United States

• FASB – Financial Accounting Standards Board

•FASB ASC - FASB Accounting Standards Codification, which serves as the source
for authoritative U.S. GAAP, except that rules and interpretive releases by the
SEC are also sources of authoritative U.S. GAAP for SEC registrants

• AUR – Average Unit Selling Price

•Comparable Retail Sales - Net sales, in constant currency, from stores that
have been open for at least 14 consecutive months and from our e-commerce store,
excluding postage and handling fees. Store closures in the current fiscal year
will be excluded from Comparable Retail Sales beginning in the fiscal quarter in
which the store closes. A store that is closed for a substantial remodel,
relocation, or material change in size will be excluded from Comparable Retail
Sales for at least 14 months beginning in the fiscal quarter in which the
closure occurred. However, stores that temporarily close will be excluded from
Comparable Retail Sales until the store is

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reopened for a full fiscal month. Comparable retail sales do not exclude temporarily closed stores impacted by the COVID-19 pandemic.

• Gross Margin – Gross profit expressed as a percentage of net sales

• SG&A – Selling, general and administrative expenses

OVERVIEW

Our Business

We are the largest pure-play children's specialty apparel retailer in North
America. We design, contract to manufacture, sell at retail and wholesale, and
license to sell, trend right, high quality merchandise predominantly at value
prices, primarily under our proprietary "The Children's Place", "Place", "Baby
Place", "Gymboree", and "Sugar & Jade" brand names. As of April 30, 2022, we had
665 stores across North America, our e-commerce business at
www.childrensplace.com, www.gymboree.com, and www.sugarandjade.com, and had 212
international points of distribution with our six franchise partners in 16
countries.

Sector reports

In accordance with FASB ASC 280-Segment Reporting, we report segment data based
on geography: The Children's Place U.S. and The Children's Place International.
Each segment includes an e-commerce business located at www.childrensplace.com,
www.gymboree.com, and www.sugarandjade.com. Included in The Children's Place
U.S. segment are our U.S. and Puerto Rico-based stores and revenue from our
U.S.-based wholesale business. Included in The Children's Place International
segment are our Canadian-based stores, revenue from our Canadian-based wholesale
business, as well as revenue from international franchisees. We measure our
segment profitability based on operating income, defined as income before
interest and taxes. Net sales and direct costs are recorded by each segment.
Certain inventory procurement functions such as production and design, as well
as corporate overhead, including executive management, finance, real estate,
human resources, legal, and information technology services, are managed by The
Children's Place U.S. segment. Expenses related to these functions, including
depreciation and amortization, are allocated to The Children's Place
International segment based primarily on net sales. The assets related to these
functions are not allocated. We periodically review these allocations and adjust
them based upon changes in business circumstances. Net sales to external
customers are derived from merchandise sales, and we have no customers that
individually account for more than 10% of our net sales.

Covid-19 pandemic

The COVID-19 pandemic continues to significantly impact regions all around the
world, including the United States and Canada. Since March 2020, this has
resulted in restrictions of businesses and other activities implemented by
national, state, and local authorities and private entities, leading to
significant adverse economic conditions and business and lifestyle disruptions,
as well as significant volatility in global financial and retail markets. From
the onset of the pandemic and as new variants emerged, federal, state, and local
governments and health officials worldwide imposed varying degrees of
preventative and protective actions in an effort to reduce the spread of the
virus. Such factors, among others, have resulted in a significant decline in
retail traffic and consumer spending on discretionary items. In addition, we
have experienced, and will likely continue to experience, disruptions in our
global supply chain, which have caused delays in the production and
transportation of our products, which we are seeking to mitigate, including
through shifting production schedules.

As of the First Quarter 2022, the progress achieved nationwide in addressing the
effects of the pandemic has allowed most businesses and shopping malls to reopen
and resume operations, with some malls continuing to restrict hours of operation
and the number of people permitted in stores. Our distribution centers remained
open and operating during the pandemic to support our retail stores and
e-commerce business, and as of April 30, 2022, all of our stores are open to the
public in the U.S., Canada, and Puerto Rico. Our U.S. office and certain of our
foreign offices are also open in a hybrid work environment, while we continue to
monitor the developments of the pandemic for our other foreign offices. We will
continue to assess the pandemic's impact on our operations and financial
situation, and will seek to implement all necessary measures as needed.

RECENT DEVELOPMENTS

Recent macroeconomic events have increased the cost of goods and services
necessary to produce and distribute our products, including cotton and other
materials used in production, as well as labor, transportation, fuel and energy.
We expect these increased product input and transportation costs to continue to
impact the remainder of 2022.

On November 16, 2021we finalized the refinancing of our previous $360.0 million asset-based revolving credit facility (the “Previous ABL Credit Facility”) and our previous $80.0 million term loan (the “Previous Term Loan”) with a new

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lending group led by an affiliate of Wells Fargo Bank, National Association
("Wells Fargo") by entering into a Fourth amendment to our Credit Agreement,
dated as of May 9, 2019, with the lenders party thereto (the "Fourth
Amendment"). The new debt consists of a revolving credit facility with $350.0
million of availability (the "ABL Credit Facility") and a $50.0 million term
loan (the "Term Loan"), both with five year maturities, lower interest rates,
reduced reporting requirements, and increased flexibility under the covenants.

Operating Highlights

Net sales decreased $73.1 million, or 16.8%, to $362.4 million during the First
Quarter 2022 from $435.5 million during the First Quarter 2021, primarily due to
lapping the COVID-19 stimulus relief program last year, the impact of
unprecedented inflation on our customers, prolonged unseasonably cold
temperatures through the end of the First Quarter 2022 in our major markets, and
the impact of permanent store closures. Comparable retail sales decreased 16.9%
for the First Quarter 2022.

Gross profit decreased $46.3 million to $141.9 million during the First Quarter
2022 from $188.2 million during the First Quarter 2021. Gross margin deleveraged
406 basis points to 39.2% of net sales in the First Quarter 2022. The decrease
was primarily the result of higher inbound transportation expenses and the
deleverage of fixed expenses resulting from the decline in net sales, partially
offset by higher merchandise margins in our brick-and-mortar retail and
e-commerce channels, driven by AUR increases in both channels.

Operating profit decreased $46.6 million at $19.3 million during the first quarter of 2022 from $65.9 million during the first quarter of 2021. Operating income deleveraged by 982 basis points to 5.3% of revenue.

Net income decreased $25.4 million to $19.8 million, or $1.43 per diluted share,
during the First Quarter 2022 compared to $45.2 million, or $3.01 per diluted
share, during the First Quarter 2021, due to the factors discussed above.

During the First Quarter 2022, we repurchased approximately 0.7 million shares
of our common stock for $38.8 million, consisting of shares surrendered to cover
tax withholdings associated with the vesting of equity awards and shares
acquired in the open market. As of April 30, 2022, there was $218.6 million
remaining under our share repurchase program.

Although we are facing challenging macroeconomic events, including increases in
the cost of goods and services necessary to produce and distribute our products,
including cotton and other materials used in production, as well as labor,
transportation, fuel and energy and continuing uncertainty regarding the future
impact of the COVID-19 pandemic, we continue to focus on our key strategic
growth initiatives - superior product, digital transformation, and fleet
optimization.

The transformation of our digital capabilities continues to expand given a
completely redesigned responsive site and mobile application, providing a rich
online shopping experience geared toward the needs of our "on-the-go" mobile
customers, expanded customer personalization, to drive sales, loyalty and
retention, and the ability to have our entire store fleet equipped with
ship-from-store capabilities. Also, in response to increased digital demand,
including as a result of the COVID-19 pandemic, we have increased and will
continue to monitor the utilization of our third-party logistics provider to
further support both our U.S. and Canadian e-commerce operations.

We continue to evaluate our store base through our base optimization initiative. We have closed 534 stores, including 7 stores closed during the first quarter of 2022, since announcing our fleet optimization initiative in 2013. We expect to close a total of approximately 40 stores this year.

We have subsidiaries whose operating results are based in foreign currencies and
are thus subject to the fluctuations of the corresponding translation rates into
U.S. dollars. The table below summarizes the average translation rates that most
significantly impact our operating results:
                                             Thirteen Weeks Ended
                                                               April 30,        May 1,
                                                                 2022            2021
Average Translation Rates (1)
Canadian dollar                                                  0.7895        0.7948
Hong Kong dollar                                                 0.1279        0.1288
Chinese renminbi                                                 0.1570        0.1539

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(1)The average conversion rates are the average of the monthly conversion rates used during each period to translate the respective income statements. Each rate represents the WE the dollar equivalent of the foreign currency concerned.



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SIGNIFICANT ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES

We describe our significant accounting policies in "Note 1. Basis of Preparation
and Summary of Significant Accounting Policies" of the notes to consolidated
financial statements included in our most recent Annual Report on Form 10-K for
the fiscal year ended January 29, 2022. There have been no significant changes
in our accounting policies from those described in our most recent Annual Report
on Form 10-K.

The preparation of financial statements in conformity with U.S. GAAP requires us
to make estimates and assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the
financial statements, and the amounts of revenues and expenses reported during
the period. We continuously review the appropriateness of the estimates used in
preparing our financial statements; however, estimates routinely require
adjustment based on changing circumstances and the receipt of new or better
information. Consequently, actual results could differ materially from our
estimates.

Our critical accounting estimates are described under the heading "Critical
Accounting Estimates" in Item 7 of our most recent Annual Report on Form 10-K
for the fiscal year ended January 29, 2022. Our critical accounting estimates
include impairment of long-lived assets, income taxes, stock-based compensation,
and inventory valuation. There have been no material changes in these critical
accounting estimates from those described in our most recent Annual Report on
Form 10-K.

Recent updates to accounting standards

There are no updates to accounting standards in progress that are expected to have a material impact on the Company.

RESULTS OF OPERATIONS

We believe that our e-commerce and brick-and-mortar retail store operations are
highly interdependent, with both sharing common customers purchasing from a
common pool of product inventory. Accordingly, we believe that consolidated
omni-channel reporting presents the most meaningful and appropriate measure of
our performance, including net sales.

The following table sets forth, for the periods indicated, selected income
statement data expressed as a percentage of net sales. We primarily evaluate the
results of our operations as a percentage of net sales rather than in terms of
absolute dollar increases or decreases by analyzing the year over year change in
our business expressed as a percentage of net sales (i.e., "basis points"). For
example, SG&A increased 558 basis points to 30.1% of net sales during the First
Quarter 2022 from 24.5% during the First Quarter 2021. Accordingly, to the
extent that our sales have increased at a faster rate than our costs (i.e.,
"leveraging"), the more efficiently we have utilized the investments we have
made in our business. Conversely, if our sales decrease or if our costs grow at
a faster pace than our sales (i.e., "de-leveraging"), we have less efficiently
utilized the investments we have made in our business.

                                                                            

Thirteen weeks over

                                                                            April 30,                  May 1,
                                                                               2022                     2021
Net sales                                                                         100.0  %                 100.0  %
Cost of sales (exclusive of depreciation and amortization)                         60.8                     56.8
Gross profit                                                                       39.2                     43.2
Selling, general, and administrative expenses                                      30.1                     24.5
Depreciation and amortization                                                       3.8                      3.6

Operating income                                                                    5.3                     15.1

Income before provision (benefit) for income taxes                                  4.8                     14.1
Provision (benefit) for income taxes                                               (0.6)                     3.7
Net income                                                                          5.5  %                  10.4  %
Number of Company stores, end of period                                             665                      724


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Table may not add up due to rounding.

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The following table sets forth net sales by segment, for the periods indicated:

                                               Thirteen Weeks Ended
                                                             April 30,       May 1,
                                                               2022           2021
                                                                 (in thousands)
Net sales:
The Children's Place U.S.                                   $ 327,961      $ 399,659
The Children's Place International                             34,389         35,822
Total net sales                                             $ 362,350      $ 435,481

First quarter 2022 compared to first quarter 2021

Net sales decreased $73.1 million or 16.8%, to $362.4 million during the First
Quarter 2022 from $435.5 million during the First Quarter 2021, primarily due to
lapping the COVID-19 stimulus relief program last year, the impact of
unprecedented inflation on our customers, prolonged unseasonably cold
temperatures through the end of the First Quarter 2022 in our major markets, and
the impact of permanent store closures. Comparable retail sales decreased 16.9%
for the quarter.

The Children's Place U.S. net sales decreased $71.7 million or 17.9%, to $328.0
million in the First Quarter 2022, compared to $399.7 million in the First
Quarter 2021. This decrease was primarily due to lapping the COVID-19 stimulus
relief program last year, the impact of unprecedented inflation on our
customers, prolonged unseasonably cold temperatures through the end of the First
Quarter 2022 in our major markets, and the impact of permanent store closures.

The Children's Place International net sales decreased $1.4 million or 4.0%, to
$34.4 million in the First Quarter 2022, compared to $35.8 million in the First
Quarter 2021. This decrease was primarily driven by the impact of unprecedented
inflation on our customers and permanent store closures, partially offset by the
favorable impact of stores that were temporarily closed in Canada during the
First Quarter 2021.

Total e-commerce sales, which include postage and handling, were 42.1% of net
sales during the First Quarter 2022, compared to 42.6% during the First Quarter
2021.

Gross profit decreased $46.3 million to $141.9 million in the First Quarter
2022, compared to $188.2 million in the First Quarter 2021. Gross margin
deleveraged 406 basis points to 39.2% of net sales in the First Quarter 2022.
The First Quarter 2021 results included incremental expenses related to the
COVID-19 pandemic, including personal protective equipment and incentive pay for
our associates of $1.0 million. Excluding the impact of these charges, gross
margin deleveraged 429 basis points to 39.2% of net sales. The decrease was
primarily the result of higher inbound transportation expenses, higher occupancy
expenses and the deleverage of fixed expenses resulting from the decline in net
sales, partially offset by higher merchandise margins in our brick-and-mortar
retail and e-commerce channels, driven by AUR increases in both channels.

Gross margin as a percentage of net sales depends on various factors, including changes in the relative mix of sales between distribution channels, changes in the mix of products sold, timing and level of promotional activities, currency exchange rates and fluctuation. in material costs. These and other factors can cause gross margin as a percentage of net sales to fluctuate from period to period.

Selling, general, and administrative expenses increased $2.3 million to
$109.0 million during the First Quarter 2022 from $106.7 million during the
First Quarter 2021. SG&A deleveraged 558 basis points to 30.1% of net sales in
the First Quarter 2022. The First Quarter 2022 results included incremental
operating expenses, including professional and consulting fees of $0.5 million
and fleet optimization costs of $0.3 million. The First Quarter 2021 results
included incremental operating expenses, primarily personal protective equipment
for our associates, of $0.6 million, fleet optimization costs of $0.8 million,
contract termination costs of $0.8 million, and restructuring costs, primarily
related to severance costs for corporate associates, of $0.5 million. Excluding
the impact of these incremental charges, SG&A deleveraged 595 basis points to
29.9% of net sales, primarily as a result of the deleverage of fixed expenses
resulting from the decline in net sales as well as planned higher marketing
spend.

The amortization was $13.6 million in the first quarter of 2022, compared to $15.6 million during the first quarter of 2021. The decrease is mainly due to the reduction of amortization of capitalized software and the permanent closure of 60 stores during the last twelve months.

Operating income decreased $46.6 million to $19.3 million during the First
Quarter 2022 from $65.9 million during the First Quarter 2021. Operating income
deleveraged 982 basis points to 5.3% of net sales in the First Quarter 2022. The
First Quarter 2022 results included incremental operating expenses of $1.4
million, compared to $4.8 million in the First Quarter 2021. Excluding the
impact of these incremental charges, operating income deleveraged 1,057 basis
points to 5.7% of net sales.

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Interest expense, net was $1.7 million during the First Quarter 2022, compared
to $4.4 million during the First Quarter 2021. The decrease was primarily driven
by lower interest rates due to our recent refinancing and a lower Term Loan
balance in the First Quarter 2022.

Provision (benefit) for income taxes was a benefit of $2.3 million during the
First Quarter 2022, compared to a provision of $16.3 million during the First
Quarter 2021. Our effective tax rate was a benefit of 13.0% and a provision of
26.5% in the First Quarter 2022 and the First Quarter 2021, respectively. The
decrease in our effective tax rate for the First Quarter 2022 compared to the
First Quarter 2021 was primarily driven by the release of a reserve for
unrecognized tax benefits as a result of a settlement with a taxing authority in
the First Quarter 2022.

Net income decreased $25.4 million to $19.8 million, or $1.43 per diluted share
during the First Quarter 2022, compared to $45.2 million, or $3.01 per diluted
share during the First Quarter 2021, due to the factors discussed above.


CASH AND CAPITAL RESOURCES

Liquidity

Our working capital needs typically follow a seasonal pattern, peaking during
the third fiscal quarter based on seasonal inventory purchases. However, during
Fiscal 2022, we anticipate our working capital needs will remain elevated in the
second fiscal quarter, in part due to actions taken in an effort to mitigate the
global supply chain disruption. Our primary uses of cash are for working capital
requirements, which are principally inventory purchases, the financing of
capital projects, including investments in new systems, and for our capital
return program (other than payment of dividends, which continue to be
temporarily suspended due to the COVID-19 pandemic).

On November 16, 2021, we completed the refinancing of the Previous ABL Credit
Facility and Previous Term Loan with a new lending group led by an affiliate of
Wells Fargo by entering into the Fourth Amendment to our Credit Agreement with
the lenders party thereto. The new debt consists of a revolving credit facility
with $350.0 million of availability and a $50.0 million term loan. (See "ABL
Credit Facility and Term Loan" below for further information).

Our working capital deficit improved $66.8 million to a deficit of $30.2 million
at April 30, 2022, compared to a deficit of $97.0 million at May 1, 2021,
primarily reflecting operating results over the past twelve months, as well as
lower current lease liabilities. During the First Quarter 2022, we used $40.4
million of cash to repurchase shares, inclusive of shares repurchased and
surrendered to cover tax withholdings associated with the vesting of equity
awards.

At April 30, 2022, we had $249.5 million of outstanding borrowings and $93.1
million available for borrowing under our ABL Credit Facility. In addition, at
April 30, 2022, we had $7.4 million of outstanding letters of credit with an
additional $42.6 million available for issuing letters of credit under our ABL
Credit Facility.

We expect to be able to meet our working capital and capital expenditure requirements for the foreseeable future using our free cash, operating cash flow and availability under our ABL credit facility.

ABL credit facility and term loan

We and certain of our subsidiaries maintain a $350 million ABL Credit Facility
and a $50 million Term Loan with Wells Fargo, Truist Bank, Bank of America,
N.A., HSBC Business Credit (USA) Inc., and JPMorgan Chase Bank, N.A., as lenders
(collectively, the "Lenders") and Wells Fargo, as Administrative Agent,
Collateral Agent, Swing Line Lender and Term Agent. Both the ABL Credit Facility
and the Term Loan mature in November 2026, and both of these debt facilities
have lower interest rates, reduced reporting requirements, and increased
flexibility under the covenants compared to the Previous ABL Credit Facility and
Previous Term Loan.

The ABL credit facility includes a $25 million Canadian sub-limit and a $50 million sub-limit for stand-by and documentary letters of credit.

Borrowings outstanding under the ABL Credit Facility bear interest, at our option, at:

(i) the prime rate plus a margin of 0.375% or 0.625% depending on the amount of our average excess availability under the facility; Where

(ii)the London InterBank Offered Rate, or "LIBOR", for an interest period of
one, three, or six months, as selected by us, plus a margin of 1.125% or 1.375%
based on the amount of our average excess availability under the facility.

We are charged an unused line fee of 0.20% on the unused portion of the
commitments. Letter of credit fees range from 0.563% to 0.683% for commercial
letters of credit and range from 0.625% to 0.875% for standby letters of
credit. Letter of credit fees are determined based on the amount of our average
excess availability under the facility. The amount available for

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loans and letters of credit under the ABL Credit Facility is determined by a borrowing base consisting of certain credit card receivables, certain trade receivables, certain inventory and the fair market value of certain real estate, under subject to certain reservations.

The outstanding obligations under the ABL Credit Facility may be accelerated
upon the occurrence of certain events, including, among others, non-payment,
breach of covenants, the institution of insolvency proceedings, defaults under
other material indebtedness, and a change of control, subject, in the case of
certain defaults, to the expiration of applicable grace periods. We are not
subject to any early termination fees.

The ABL Credit Facility contains covenants, which include conditions on stock
buybacks and the payment of cash dividends or similar payments. These covenants
also limit our ability to incur certain liens, to incur certain indebtedness, to
make certain investments, acquisitions, or dispositions, or to change the nature
of our business.

Credit extended under the ABL Credit Facility is secured by a first priority
security interest in substantially all of our U.S. and Canadian assets other
than intellectual property, certain furniture, fixtures, equipment, and pledges
of subsidiary capital stock, and a second priority security interest in our
intellectual property, certain furniture, fixtures, equipment, and pledges of
subsidiary capital stock.

The table below presents the components of our ABL Credit Facility and Previous
ABL Credit Facility:

                                                                        April 30,                    January 29,                    May 1,
                                                                           2022                          2022                        2021
                                                                                                   (in millions)
Credit facility maximum                                           $                350.0       $                  350.0       $             360.0
Borrowing base (1)                                                                 350.0                          279.7                     330.4

Outstanding borrowings                                                             249.5                          175.3                     196.9

Letters of credit outstanding-standby                                                7.4                            7.4                       7.4
Utilization of credit facility at end of period                                    256.9                          182.7                     204.3

Availability (2)                                                  $                 93.1       $                   97.0       $             126.1

Interest rate at end of period                                                      2.0%                           1.6%                      4.0%


                                                        First Quarter 2022              Fiscal 2021               First Quarter 2021
Average end of day loan balance during the period      $              251.2       $                  187.0       $              210.3
Highest end of day loan balance during the period      $              308.6       $                  269.7       $              260.6
Average interest rate                                                  2.0%                           3.6%                       4.0%

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(1) Lower between the maximum of the credit facility or the total of the basic loan guarantee.

(2) The sub-limit available for letters of credit was $42.6 million at
April 30, 2022, January 29, 2022and May 1, 2021.

The Term Loan bears interest, payable monthly, at (a) the LIBOR Rate plus 2.50%
for any portion that is a LIBOR loan, or (b) the base rate plus 1.75% for any
portion that is a base rate loan. The Term Loan is pre-payable at any time
without penalty, and does not require amortization. For the First Quarter 2022,
we recognized $0.4 million in interest expense related to the Term Loan.

The Term Loan is secured by a first priority security interest in our
intellectual property, certain furniture, fixtures, equipment, and pledges of
subsidiary capital stock, and a second priority security interest in the
collateral securing the ABL Credit Facility on a first-priority basis. The Term
Loan is guaranteed by each of our subsidiaries that guarantees the ABL Credit
Facility and contains substantially the same covenants as provided in the ABL
Credit Facility.

Both the ABL Credit Facility and the Term Loan contain customary events of
default, which include (subject in certain cases to customary grace and cure
periods), nonpayment of principal or interest, breach of covenants, failure to
pay certain other indebtedness, and certain events of bankruptcy, insolvency or
reorganization. As of April 30, 2022, unamortized deferred financing costs
amounted to $2.7 million, of which $2.4 million related to our ABL Credit
Facility.

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Cash flow and capital expenditure

Cash used in operating activities was $18.8 million during the First Quarter
2022, compared to $16.6 million during the First Quarter 2021. Cash used in
operating activities during the First Quarter 2022 was primarily the result of
the timing of inventory receipts as a result of global supply chain disruptions,
partially offset by earnings generated during the period, the receipt of a net
income tax refund of $21.6 million, as well as other planned changes in working
capital. Cash used in operating activities during the First Quarter 2021 was
primarily the result of the payment of certain suspended 2020 rents, net of
abatements, as well as other planned changes in working capital, which brought
our vendor payables in line with historical payment terms, partially offset by
earnings generated during the period.

Cash used in investing activities was $11.0 million during the First Quarter
2022, compared to $6.7 million during the First Quarter 2021. This change was
primarily driven by the timing of capital expenditures.

Cash from financing activities was $33.9 million in the first quarter of 2022, compared to $24.5 million during the first quarter of 2021. The increase was primarily due to additional net borrowings under our revolving asset-based credit facility, partially offset by increased repurchases of our common shares during the first quarter of 2022 compared to in the first quarter of 2021.

We anticipate total capital expenditures to approximate $55 million in Fiscal
2022, primarily related to digital and supply chain fulfillment initiatives,
compared to $29.3 million in Fiscal 2021. Our ability to continue to meet our
capital requirements in Fiscal 2022 depends on our cash on hand, our ability to
generate cash flows from operations, and available borrowings under our ABL
Credit Facility. Cash flows generated from operations depends on our ability to
achieve our financial plans. We believe that our existing cash on hand, cash
generated from operations, and funds available to us through our ABL Credit
Facility will be sufficient to fund our capital and other cash requirements for
the foreseeable future.

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