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Jul 02, 2022
Carter's Q2 2022 Earnings Report
Reported a decrease in net sales and operating income due to declines in U.S. Retail and U.S. Wholesale sales, partially offset by growth in International sales.
Key Takeaways
Carter's, Inc. reported second quarter fiscal 2022 results with net sales of $701 million and diluted EPS of $0.93. The company returned $132 million to shareholders through share repurchases and dividends. The absence of government stimulus, surge in gas prices and inflation weighed on consumers' demand.
Net sales decreased by 6.1% to $700.7 million.
Diluted EPS was $0.93, while adjusted diluted EPS was $1.30.
Operating income decreased to $75.4 million, with an operating margin of 10.8%.
The company returned $132 million to shareholders through share repurchases and dividends.
Revenue by Segment
Forward Guidance
For fiscal year 2022, the Company projects net sales of approximately $3.25 billion to $3.30 billion and adjusted diluted earnings per share of approximately $7.10 to $7.60.
Positive Outlook
- Inventory commitments aligned with our revised sales outlook
- Better mix and level of inventories relative to last year, supporting the upcoming back-to-school and holiday seasons
- Improving supply chain performance
- Reduced discretionary spending
- Improved price realization
Challenges Ahead
- A continuation of second quarter demand trends
- Market risks related to inflation
- Impact on consumer demand
- Adjusted operating income of approximately $415 million to $440 million, compared to $500.8 million in fiscal 2021
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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