Carter’s, Inc.’s consolidated net sales in the fourth quarter they decreased by $150 million or 14.1% to $912.1 million.
The decline was driven by declines in the company’s US retail, wholesale and international segments of 12.7%, 17.8% and 12%, respectively.
“We saw stronger than expected demand for our brands in the final months of the year, which allowed Carter’s to meet its fourth-quarter sales and earnings targets,” said Michael D. Casey, president and CEO of the company in a communicated.
Carter’s net income drops 17.3% in fourth quarter
US retail comparable net sales were down 12.9%. Changes in currency exchange rates, the company said, had an unfavorable effect on consolidated net sales of approximately $5.8 million or 0.5 percent.
The company’s operating profit decreased by $28.4 million or 20.6 percent to $109.5 million, while operating margin decreased by 100 basis points to 12 percent. Adjusted operating income decreased $19.3 million or 14 percent to $118.5 million, while adjusted operating margin was year-over-year at 13 percent.
Net income decreased $16.8 million or 17.3 percent to $80.2 million, while diluted earnings per share decreased 8.7 percent to $2.11. Adjusted net income decreased $9.9 million or 10.2 percent to $87 million and adjusted diluted earnings per share decreased 0.9 percent to $2.29.
Carter’s net sales for fiscal ’22 fall 8%
Consolidated net sales for fiscal 2022 decreased $273.7 million or 7.9% to $3.2 billion.
The company added that US retail net sales were down 11.5%, reflecting inflationary pressures that led to lower consumer demand and the comparison with the prior year period, which benefited from unprecedented and significant government stimulus payments. made to consumers in response to the pandemic.
US Retail Comparable Net Sales were down 10.1%, US Wholesale and International Net Sales were down 4.1% and 1.9%, respectively.
Operating income for fiscal 2022 decreased $117.9 million or 23.7% to $379.2 million, while operating margin decreased 250 basis points to 11.8%.
Net income for fiscal 2022 declined $89.7 million or 26.4% to $250 million, while diluted earnings per share declined 18.8% to $6.34. Adjusted net income decreased $70.4 million or 20.6 percent to $272 million and adjusted earnings per diluted share decreased 12.3 percent to $6.90.
Carter’s announces fiscal 23 and Q1 outlook
For fiscal 2023, the company expects $3 billion in net sales, $350 million in adjusted operating income compared to $388.2 million in fiscal 2022; and $6.15 in adjusted diluted earnings per share, compared to $6.90 in fiscal 2022.
For the first quarter of fiscal 2023, the company expects approximately $630 million to $650 million in net sales; $30 million to $40 million in adjusted operating income, compared to $102.6 million in the first quarter of fiscal 2022; and 35 cents to 55 cents in adjusted diluted earnings per share, compared with $1.66 in the first quarter of fiscal 2022.