- Carter’s Inc (NYSE:CRI) reported a third-quarter FY22 sales decline of 8.1% year-on-year to $818.6 million, missing the consensus of $853.58 million.
- Lower sales were driven by declines in the U.S. Retail, International, and U.S. Wholesale sales of 12.3%, 6.7%, and 1.9%, respectively. U.S. Retail comparable net sales declined by 11%.
- The gross profit decreased 9.4% Y/Y to $370.5 million, with a profit margin of 45.3%.
- The adjusted operating margin decreased 270 basis points to 11.2%, and adjusted operating income for the quarter fell 26.1% to $91.6 million.
- The company held $121.65 million in cash and equivalents as of October 1, 2022.
- Adjusted EPS of $1.67 missed the analyst consensus of $1.70.
- “Historic and persistent inflation has continued to weigh on demand for our brands, and is adversely affecting many families raising young children,” said Chairman and CEO Michael D. Casey.
- Outlook: Carter sees FY22 sales of $3.145 billion – $3.185 billion (prior view $3.25 billion – $3.30 billion), below the consensus of $3.29 billion.
- The company expects FY22 adjusted EPS of $6.05 – $6.65 (previous view $7.10 – $7.60) versus the consensus of $7.18.
- For Q4, it expects sales of $845 million – $885 million, below the Street view of $963.82 million. Adjusted EPS of $1.40 – $2.00, against the consensus of $2.56.
- Price Action: CRI shares are trading lower by 6.53% at $68.76 on the last check Friday.
Why U.S. Stocks Are Trading Higher Ahead Of Fed Minutes
U.S. stocks traded slightly higher this morning, with the Dow Jones gaining more than 50 points on Wednesday. Investors are awaiting minutes from the recent Federal Reserve meeting.
