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Mar 29, 2025
Carter's Q1 2025 Earnings Report
Carter’s reported decreased sales and profits in Q1 2025 amid macroeconomic headwinds and a leadership transition.
Key Takeaways
Carter’s experienced a 4.8% drop in net sales and over 50% decline in net income compared to Q1 2024. The company saw solid March momentum, particularly in U.S. Retail and Wholesale, but overall performance was hampered by inflation, high interest rates, and CEO transition costs.
Net sales fell 4.8% year-over-year to $629,827,000.
GAAP EPS was $0.43; adjusted EPS was $0.66.
Net income dropped to $15,539,000 from $38,033,000 last year.
Forward guidance suspended due to leadership transition and tariff uncertainty.
Revenue by Segment
Forward Guidance
Carter’s suspended forward-looking guidance due to its CEO transition and tariff uncertainties.
Positive Outlook
- Improved March traffic and conversion rates.
- U.S. Retail met internal sales and earnings targets.
- U.S. Wholesale outperformed internal forecasts.
- International markets showed strong performance, especially Canada and Mexico.
- New CEO brings brand familiarity and strategic focus.
Challenges Ahead
- Ongoing macroeconomic headwinds like inflation and high interest rates.
- Overall decline in consumer confidence impacted sales.
- Leadership transition created short-term operational costs.
- eCommerce outperformed but retail store comps declined.
- Tariff uncertainty complicates financial outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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