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Sep 28, 2024
Carter's Q3 2024 Earnings Report
Exceeded sales and earnings objectives, driven by strong U.S. Retail performance and effective pricing and brand marketing strategies.
Key Takeaways
Carter's Inc. reported better-than-expected Q3 2024 results, with U.S. Retail sales driven by strong product offerings, pricing, and marketing strategies. The company is reaffirming its fiscal year 2024 outlook for sales and adjusted operating income, and raising its adjusted diluted EPS outlook.
Net sales were $758 million, compared to $792 million in Q3 2023.
Operating margin was 10.2%, compared to 11.8% in Q3 2023; adjusted operating margin was 10.2%, compared to 12.2% in Q3 2023.
Diluted EPS was $1.62, compared to $1.78 in Q3 2023; adjusted diluted EPS was $1.64, compared to $1.84 in Q3 2023.
The company is reaffirming its fiscal year 2024 outlook for net sales of $2.785 billion to $2.825 billion and adjusted operating income of $240 million to $260 million, and raising its adjusted diluted EPS outlook to $4.70 to $5.15.
Revenue by Segment
Forward Guidance
For the fourth quarter of fiscal 2024, the Company projects net sales of $800 million to $840 million, adjusted operating income of $70 million to $90 million, and adjusted diluted earnings per share of $1.32 to $1.72.
Positive Outlook
- Lower net interest expense.
- Lower effective tax rate.
- Lower share count.
Challenges Ahead
- Continued macroeconomic pressure on consumer demand.
- Approximately $30 million of investments in pricing & brand marketing.
- Lower gross profit margin.
- Increased SG&A.
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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