In This Article:
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Consolidated Net Sales: $860 million, slightly up over last year.
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Adjusted Operating Income: $115 million, representing a 13.4% adjusted operating margin.
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Adjusted EPS: $2.39, down 13% from last year.
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Gross Margin: 47.8%, down 90 basis points from last year.
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US Wholesale Sales Growth: 7% year-over-year.
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International Retail Comps: Canada up 6%, Mexico up 8%.
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Full Year Net Sales: $2.8 billion, down 3% from last year.
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Full Year Operating Income: $287 million, down 13% from last year.
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Full Year EPS: $5.81, down 6% versus last year.
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Year-End Inventories: Down 6% versus last year.
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Operating Cash Flow: Nearly $300 million generated.
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2025 Sales Outlook: $2.780 billion to $2.855 billion.
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2025 Operating Income Outlook: $180 million to $210 million.
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2025 Adjusted EPS Outlook: $3.20 to $3.80.
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2025 Operating Cash Flow Outlook: Around $200 million.
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2025 CapEx Forecast: $65 million, up about $10 million over last year.
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Carter's Inc (NYSE:CRI) exceeded its sales and earnings expectations for the fourth quarter of 2024.
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The company saw a rise in consumer confidence and favorable holiday selling, contributing to a positive end to the year.
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Carter's Inc (NYSE:CRI) grew its market share in the baby and toddler apparel segments in the US in 2024.
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The company's exclusive brand products achieved record sales in 2024, leveraging consumer shifts to mass channels.
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Carter's Inc (NYSE:CRI) introduced new personalization capabilities and rebranded its loyalty program, enhancing customer engagement.
Negative Points
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Carter's Inc (NYSE:CRI) anticipates a challenging profitability outlook for 2025.
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The company recorded a $30 million noncash pretax charge related to the impairment of the OshKosh B'gosh brand trade name.
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Fourth quarter adjusted EPS was down 13% from the previous year.
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US Retail segment faced a decline in sales, impacting overall performance.
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The stronger US dollar negatively affected international segment results and is expected to be a headwind in 2025.
Q & A Highlights
Q: Kendra, can you discuss the changes in inventory assortment as you modernize it and how you plan to avoid alienating core consumers? A: Kendra Krugman, Chief Creative and Growth Officer, explained that the changes are not dramatic in the baby and toddler segments, focusing on best categories and must-have products. The most opportunity lies in the kids segment, where a 20-point shift towards more style-forward categories is planned, which should help retain customers longer and compete more effectively.