Carter’s Inc ( (CRI) ) has released its Q2 earnings. Here is a breakdown of the information Carter’s Inc presented to its investors.
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Carter’s, Inc., headquartered in Atlanta, Georgia, is North America’s largest apparel company specializing in clothing for babies and young children, with well-known brands such as Carter’s and OshKosh B’gosh. The company operates over 1,000 stores across the U.S., Canada, and Mexico, and its products are also available through major retailers like Walmart, Target, and Amazon.
In its second quarter of fiscal 2025, Carter’s, Inc. reported net sales of $585 million, marking a 4% increase from the previous year. Despite this growth in sales, the company experienced a significant decline in profitability, with diluted earnings per share dropping to $0.01 from $0.76 in the same quarter of 2024. The company also returned $38 million to shareholders through dividends in the first half of the fiscal year.
Key financial highlights include a 14.1% increase in international sales and a 3.2% rise in U.S. retail segment sales. However, the U.S. wholesale segment sales remained flat. The company’s operating income saw a sharp decline of 89.7% to $4 million, attributed to investments in pricing, new stores, and increased performance-based compensation. Adjusted operating income also fell by 70.2% to $11.8 million.
Looking ahead, Carter’s, Inc. is focused on returning to sustainable and profitable growth by investing in high-quality, modern design products that offer exceptional value. The company is also navigating challenges related to potential new tariffs on imported products, which could impact earnings. Despite these challenges, the management remains confident in the company’s future prospects, emphasizing the strong emotional connection with consumers and the commitment to serving young families.