NYSE$CRI

Carter's · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Achieved record levels of sales and earnings.

Carter's, Inc. reported strong second quarter fiscal 2021 results with net sales of $746 million, a 45% increase compared to the prior year. Diluted EPS was $1.62, and adjusted diluted EPS was $1.67. The company has raised its full year fiscal 2021 outlook.

  • Net sales $746 million, growth of 45%
  • Strong growth in all business segments
  • Gross margin 49.4%, 370 basis point expansion
  • Diluted EPS $1.62 vs. $0.19 in Q2 2020; adjusted diluted EPS $1.67 vs. $0.54 in Q2 2020

Headline financials

Total Revenue

$746M

Previous: $515M+45.0%
EPS (adj)

$1.67

Previous: $0.54+209.3%
Capital Expenditures

-$20.5M

Previous: -$16.7M-22.7%
Free Cash Flow

$51.1M

Previous: -$8.55M+697.5%
Net Income

$71.6M

Previous: $8.16M+777.9%
Operating Income

$108M

Previous: $21M+413.4%
Gross Profit

$369M

Previous: $236M+56.6%
Cash & Equivalents

$1.12B

Previous: $1B+12.0%
Total Assets

$3.32B

Previous: $3.41B-2.8%

Revenue & EPS history

Carter's · Revenue · Quarterly

$746M

Q2 2021+45%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Carter's · $746M total across 3 segments · Q2 2021

  • U.S. Retail
    $424M+34.1%
  • U.S. Wholesale
    $232M+52.6%
  • International
    $91.1M+93.4%

Forward guidance

The Company’s revised outlook for fiscal year 2021 reflects stronger than expected performance in the first half, and improved second half sales and adjusted earnings compared to those contemplated in its previous guidance.

Tailwinds

  • market-leading product assortments
  • structural changes made during the pandemic, such as improved assortment productivity
  • inventory management and marketing effectiveness
  • benefit of government stimulus

Headwinds

  • supply chain disruptions
  • higher transportation costs
  • COVID-19 case trends
  • consumer traffic
  • international consumer demand

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 Q2 2021

Historical avgQ2 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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