2023-04-28 06:43:31 ET
Carter's ( NYSE: CRI ) reported a 10.9% drop in sales in Q1 to $695.9M due to what it said was a mix of macroeconomic factors. U.S. retail comparable net sales declined 12.9% during the quarter.
Adjusted operating income fell 44.0% to $57.5M due to fixed cost deleverage on lower sales, channel mix of sales, and higher inbound freight costs, partly offset by lower air freight expenses.
CEO update: "As expected, our first quarter sales and earnings were lower than last year. Historic inflation began to meaningfully weigh on families with young children and their demand for our brands last year.To mitigate the effects of lower consumer demand, we have focused on reducing discretionary spending and improving price realization, largely driven through better inventory management."
Looking ahead, Carter's ( CRI ) sees Q2 sales $590M to $605M vs. $626M consensus, Q2 operating income of $30M to $35M, and EPS of $0.40 to $0.50 vs. $0.75 consensus.
Shares of Carter's ( CRI ) fell 2.06% in premarket trading to $67.50.
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Carter's falls after earnings miss, soft guidance