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Jun 29, 2024
Carter's Q2 2024 Earnings Report
Carter's reported second quarter fiscal 2024 results, achieving sales and earnings objectives amidst a promotional market and macroeconomic pressures.
Key Takeaways
Carter's, Inc. reported a decrease in net sales to $564 million compared to $600 million in Q2 2023. Despite lower sales, the company achieved a higher operating margin of 7.0% compared to 6.3% in the prior year. Diluted EPS increased to $0.76 from $0.64 in Q2 2023. The company distributed $54 million to shareholders through dividends and share repurchases.
Net sales decreased by 6.0% to $564.4 million due to macroeconomic factors.
Operating margin increased to 7.0% due to lower inbound freight and product costs.
Diluted EPS increased to $0.76 compared to $0.64 in the prior year.
The company returned $54 million to shareholders through dividends and share repurchases.
Revenue by Segment
Forward Guidance
The Company projects net sales of $2.785 billion to $2.825 billion and adjusted operating income of $240 million to $260 million. Adjusted diluted EPS is expected to be $4.60 to $5.05 for fiscal year 2024.
Positive Outlook
- Lower net interest expense.
- Lower effective tax rate.
- Continued return of capital.
- Increased investments in brand marketing to improve customer acquisition.
- Continued store fleet optimization, including opening high-margin stores, closing low-margin stores, and converting stores to more productive formats.
Challenges Ahead
- Continued macroeconomic pressure on consumer demand.
- Lower gross profit margin in Q3.
- Increased SG&A.
- Lower prices to drive traffic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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