NYSE$CRI

Carter's · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong Q1 2021 results, exceeding expectations with growth across all business segments and raised full year fiscal 2021 outlook.

Carter's, Inc. reported a strong first quarter fiscal 2021, with net sales increasing by 20% to $787 million and diluted EPS of $1.96, compared to a loss per diluted share of $1.82 last year. The company's performance was driven by double-digit growth in all business segments and strong online demand. Carter's has raised its full-year fiscal 2021 outlook, projecting net sales growth of approximately 10% and adjusted diluted EPS growth of approximately 40%.

  • Net sales increased by 20% to $787 million, with double-digit growth in all business segments.
  • U.S. eCommerce net sales increased by 38%.
  • Operating margin was 16.2%, and adjusted operating margin was 16.3%.
  • Diluted EPS was $1.96, compared to a loss per diluted share of $1.82 last year; adjusted diluted EPS was $1.98, compared to an adjusted loss per diluted share of $0.81 last year.

Headline financials

Total Revenue

$787M

Previous: $654M+20.3%
EPS (adj)

$1.98

Previous: -$0.81+344.4%
Capital Expenditures

-$11.7M

Previous: -$8.07M-44.6%
Free Cash Flow

$74.5M

Previous: -$86.8M+185.9%
Net Income

$86.2M

Previous: -$78.7M+209.5%
Operating Income

$127M

Previous: -$78.5M+262.5%
Gross Profit

$392M

Previous: $228M+71.7%
Cash & Equivalents

$1.05B

Previous: $759M+38.8%
Total Assets

$3.31B

Previous: $3.15B+5.0%

Revenue & EPS history

Carter's · Revenue · Quarterly

$787M

Q1 2021+20.3%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Carter's · $787M total across 3 segments · Q1 2021

  • U.S. Retail
    $407M+26.9%
  • U.S. Wholesale
    $283M+12.4%
  • International
    $96.9M+18.7%

Forward guidance

The Company’s outlook for the balance of fiscal year 2021 contemplates marketplace risks and opportunities with uncertain potential effects on business results. For fiscal 2021 (a 52 week fiscal year), the Company projects net sales will increase approximately 10% and adjusted diluted earnings per share will increase approximately 40% compared to adjusted diluted earnings per share of $4.16 in fiscal 2020. For the second quarter of fiscal 2021, the Company projects net sales will increase approximately 35%, adjusted operating income will increase approximately 35% (compared to adjusted operating income of $41.1 million in the second quarter of fiscal 2020) and adjusted diluted earnings per share will increase approximately 25% (compared to adjusted diluted earnings per share of $0.54 in the second quarter of fiscal 2020).

Tailwinds

  • share gains resulting from the Company’s market-leading product assortments and differentiated marketing capabilities
  • accelerated vaccination rates
  • less restrictive business and social gathering directives
  • a return to in-person classroom instruction
  • the benefit of child tax credits and additional government stimulus

Headwinds

  • supply chain disruptions
  • higher transportation costs
  • pandemic-related birth count declines
  • COVID-19 case trends
  • store traffic

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.1%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-2.6%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+14.5%

Q4 2015

Best reaction

-20.3%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.7%-1.9%+14.2%
Q4 2025-20.3%-16.3%-17.2%
Q3 2025+2.0%-2.9%-0.2%
Q2 2025+3.6%+8.5%+25.4%
Q1 2025-11.4%-13.5%-17.9%
Q4 2024-16.1%-20.7%-20.7%
Q3 2024-14.2%-15.4%-17.8%
Q2 2024+1.4%+1.2%+10.8%
Q1 2024-1.6%-4.4%-7.9%
Q4 2023+0.6%-1.3%+3.9%
Q3 2023+3.1%+3.5%+5.4%
Q2 2023+0.4%-0.9%-8.1%
Q1 2023-1.5%-2.1%-9.2%
Q4 2022+0.5%+2.2%-5.2%
Q3 2022-7.7%-11.5%+2.1%
Q2 2022+2.3%+0.7%-5.4%
Q1 2022-3.9%-3.1%-12.9%
Q4 2021+10.1%+13.0%+7.8%
Q3 2021+1.1%+2.6%+1.6%
Q2 2021+2.2%+1.3%+5.2%
Q1 2021+8.1%+6.8%-0.9%
Q3 2020+0.8%-4.7%+0.6%
Q2 2020+2.9%-2.1%-10.6%
Q1 2020+0.6%+4.9%+19.1%
Q4 2019-17.2%-17.4%-34.7%
Q3 2019+2.7%+2.9%+4.2%
Q2 2019+3.9%+0.9%-5.0%
Q1 2019-2.2%+0.8%-20.5%
Q4 2018+7.1%+7.7%+8.7%
Q3 2018-3.8%+2.6%-5.7%
Q2 2018-10.2%-9.3%-9.1%
Q1 2018-1.5%-4.4%+7.2%
Q4 2017-5.0%-4.9%-15.2%
Q3 2017+4.3%+3.1%+14.0%
Q2 2017-2.7%-0.2%-1.8%
Q1 2017-0.1%+0.0%-9.9%
Q4 2016+7.7%+5.3%+7.3%
Q3 2016+1.6%+1.1%+8.8%
Q2 2016-8.4%-9.5%-13.2%
Q1 2016+1.6%
Q4 2015+14.5%
Q3 2015+2.1%
Q2 2015-6.9%
Q1 2015+7.4%
Q4 2014+6.9%
Q3 2014-0.8%
Q2 2014+6.6%
Q1 2014-0.1%
Q4 2013+9.2%
Q3 2013-8.9%
Q2 2013-1.0%
Q1 2013+7.1%
Q4 2012-4.2%
Q3 2012+2.7%
Q2 2012-2.4%
Q1 2012+4.1%
Q4 2011+11.8%
Q3 2011-2.4%
Q2 2011-6.1%
Q4 2009+2.7%
Q1 2011-0.9%
Q3 2010+4.5%
Q2 2010-0.2%
Q4 2010-0.2%
Q1 2010-5.4%

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