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Sep 30, 2023
Carter's Q3 2023 Earnings Report
Reported third quarter fiscal 2023 results.
Key Takeaways
Carter's, Inc. reported third quarter fiscal 2023 results, achieving sales and earnings objectives. Net sales decreased by 3.3% to $792 million compared to Q3 2022. Diluted EPS increased to $1.78 from $1.67 in Q3 2022.
Net sales were $792 million, compared to $819 million in Q3 2022.
Operating margin was 11.8%, compared to 11.2% in Q3 2022; adjusted operating margin was 12.2% compared to 11.2% in Q3 2022.
Diluted EPS was $1.78, compared to $1.67 in Q3 2022; adjusted diluted EPS was $1.84, compared to $1.67 in Q3 2022.
Year-to-date operating cash flow was $206 million.
Revenue by Segment
Forward Guidance
For fiscal year 2023, the Company expects net sales of $2.950 billion to $2.965 billion, adjusted operating income of $325 million to $335 million, adjusted diluted EPS of $5.95 to $6.15, operating cash flow of over $350 million, and capital expenditures of approximately $65 million. For the fourth quarter of fiscal 2023, the Company expects net sales of $862 million to $877 million, adjusted operating income of $133 million to $143 million, and adjusted diluted EPS of $2.50 to $2.72.
Positive Outlook
- Improved consumer demand trend relative to the third quarter
- Cautious inventory commitments by wholesale customers
- Gross margin expansion, reflecting improved pricing and lower ocean freight rates
- Lower SG&A expense
- Lower average number of shares outstanding
Challenges Ahead
- Higher effective tax rate
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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