NYSE$CRI

Carter's · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported a decrease in net sales and operating income due to declines in U.S. Retail and U.S. Wholesale sales, partially offset by growth in International sales.

Carter's, Inc. reported second quarter fiscal 2022 results with net sales of $701 million and diluted EPS of $0.93. The company returned $132 million to shareholders through share repurchases and dividends. The absence of government stimulus, surge in gas prices and inflation weighed on consumers' demand.

  • Net sales decreased by 6.1% to $700.7 million.
  • Diluted EPS was $0.93, while adjusted diluted EPS was $1.30.
  • Operating income decreased to $75.4 million, with an operating margin of 10.8%.
  • The company returned $132 million to shareholders through share repurchases and dividends.

Headline financials

Total Revenue

$701M

Previous: $746M-6.1%
EPS (adj)

$1.30

Previous: $1.67-22.2%
Capital Expenditures

-$16.3M

Previous: -$20.5M+20.4%
Free Cash Flow

$20.7M

Previous: $51.1M-59.6%
Net Income

$37M

Previous: $71.6M-48.4%
Operating Income

$75.4M

Previous: $108M-29.9%
Gross Profit

$331M

Previous: $369M-10.2%
Cash & Equivalents

$231M

Previous: $1.12B-79.4%
Total Assets

$2.57B

Previous: $3.32B-22.4%
Stock-Based Comp

$6.36M

No prior period

Revenue & EPS history

Carter's · Revenue · Quarterly

$701M

Q2 2022-6.1%vs Q2 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Carter's · $701M total across 3 segments · Q2 2022

  • U.S. Retail
    $379M-10.5%
  • U.S. Wholesale
    $224M-3.3%
  • International
    $97.6M+7.1%

Forward guidance

For fiscal year 2022, the Company projects net sales of approximately $3.25 billion to $3.30 billion and adjusted diluted earnings per share of approximately $7.10 to $7.60.

Tailwinds

  • Inventory commitments aligned with our revised sales outlook
  • Better mix and level of inventories relative to last year, supporting the upcoming back-to-school and holiday seasons
  • Improving supply chain performance
  • Reduced discretionary spending
  • Improved price realization

Headwinds

  • A continuation of second quarter demand trends
  • Market risks related to inflation
  • Impact on consumer demand
  • Adjusted operating income of approximately $415 million to $440 million, compared to $500.8 million in fiscal 2021
  • Adjusted diluted earnings per share of approximately $7.10 to $7.60, compared to $7.87 in fiscal 2021

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 2022

Historical avgQ2 2022

-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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