Carter's Q3 Earnings Summary

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Amara

Member
Jul 18, 2024
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Earnings Beat Estimates
Carter's reported Q3 adjusted EPS of $1.64, surpassing the Zacks Consensus Estimate of $1.29 but down 10.9% from last year’s $1.84.

Sales Decline
Consolidated net sales were $758.5 million, beating the estimate of $748 million but decreasing 4.2% year-over-year due to inflation, reduced spending, and currency headwinds.

Segment Performance
U.S. Retail: Sales fell 5.8% to $353 million, with comparable net sales down 7.1%.
U.S. Wholesale: Sales declined 0.5% to $299 million.
International: Sales dropped 8.6% to $106.5 million, affected by unfavorable currency exchange.

Margins and Expenses
Gross profit declined 5.4% to $356 million, with a gross margin of 46.9% (down 60 bps).
Adjusted operating income decreased 20% to $77 million, and the operating margin fell 200 bps to 10.2%.
SG&A expenses slightly dipped by 0.4% to $284.7 million but rose as a percentage of sales to 37.5%, impacted by higher distribution and transportation costs, brand marketing, and retail investments.

Stock Performance
Carter's shares have declined 6.1% over the past three months, contrasting with a 7.1% growth in the industry.