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Apr 03, 2021
Carter's Q1 2021 Earnings Report
Reported strong Q1 2021 results, exceeding expectations with growth across all business segments and raised full year fiscal 2021 outlook.
Key Takeaways
Carter's, Inc. reported a strong first quarter fiscal 2021, with net sales increasing by 20% to $787 million and diluted EPS of $1.96, compared to a loss per diluted share of $1.82 last year. The company's performance was driven by double-digit growth in all business segments and strong online demand. Carter's has raised its full-year fiscal 2021 outlook, projecting net sales growth of approximately 10% and adjusted diluted EPS growth of approximately 40%.
Net sales increased by 20% to $787 million, with double-digit growth in all business segments.
U.S. eCommerce net sales increased by 38%.
Operating margin was 16.2%, and adjusted operating margin was 16.3%.
Diluted EPS was $1.96, compared to a loss per diluted share of $1.82 last year; adjusted diluted EPS was $1.98, compared to an adjusted loss per diluted share of $0.81 last year.
Revenue by Segment
Forward Guidance
The Company’s outlook for the balance of fiscal year 2021 contemplates marketplace risks and opportunities with uncertain potential effects on business results. For fiscal 2021 (a 52 week fiscal year), the Company projects net sales will increase approximately 10% and adjusted diluted earnings per share will increase approximately 40% compared to adjusted diluted earnings per share of $4.16 in fiscal 2020. For the second quarter of fiscal 2021, the Company projects net sales will increase approximately 35%, adjusted operating income will increase approximately 35% (compared to adjusted operating income of $41.1 million in the second quarter of fiscal 2020) and adjusted diluted earnings per share will increase approximately 25% (compared to adjusted diluted earnings per share of $0.54 in the second quarter of fiscal 2020).
Positive Outlook
- share gains resulting from the Company’s market-leading product assortments and differentiated marketing capabilities
- accelerated vaccination rates
- less restrictive business and social gathering directives
- a return to in-person classroom instruction
- the benefit of child tax credits and additional government stimulus
Challenges Ahead
- supply chain disruptions
Historical Earnings Impact
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Avg. Return Before/After Earnings
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