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Dec 31, 2022
Carter's Q4 2022 Earnings Report
Reported fourth quarter and fiscal year 2022 results.
Key Takeaways
Carter's, Inc. reported a decrease in consolidated net sales by 14.1% to $912.1 million and a decrease in diluted earnings per share by 8.7% to $2.11 compared to the fourth quarter of fiscal 2021. The results reflect the impact of inflation on consumer demand and wholesale customers.
Net sales for the fourth quarter of fiscal 2022 were $912 million.
Diluted EPS for the fourth quarter was $2.11, including a non-cash charge of $0.18 related to the impairment of the Skip Hop tradename; adjusted diluted EPS was $2.29.
The company returned $418 million to shareholders through share repurchases and dividends in fiscal year 2022.
Carter's expects inflation will continue to weigh on consumers in 2023.
Revenue by Segment
Forward Guidance
For fiscal year 2023, the Company expects net sales of approximately $3.0 billion and adjusted diluted earnings per share of $6.15.
Positive Outlook
- Stronger second half performance as trends in sales, inbound freight, and product costs moderate.
- Gross margin expansion, driven by improved price realization and lower costs.
- Comparable SG&A.
- Continued return of capital initiatives.
Challenges Ahead
- Continued inflationary pressure on consumer demand and cautious inventory commitments by wholesale customers.
- Higher interest expense and effective tax rate.
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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