NYSE$CRI

Carter's · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported third quarter fiscal 2022 results.

Carter's, Inc. reported a decrease in net sales by 8.1% to $818.6 million, driven by declines in the U.S. Retail, International, and U.S. Wholesale segments. Diluted EPS was $1.67, compared to $1.93 in the same quarter of the previous year. The company returned $331 million to shareholders year-to-date.

  • Net sales decreased by 8.1% to $819 million.
  • Operating income decreased to $92 million.
  • Diluted EPS was reported at $1.67.
  • The company returned $331 million to shareholders year-to-date through share repurchases and dividends.

Headline financials

Total Revenue

$819M

Previous: $891M-8.1%
EPS (adj)

$1.67

Previous: $1.93-13.5%
Capital Expenditures

-$26.9M

Previous: -$28.7M+6.3%
Free Cash Flow

$38.1M

Previous: $56.3M-32.4%
Net Income

$65M

Previous: $85M-23.6%
Operating Income

$91.6M

Previous: $124M-26.2%
Gross Profit

$371M

Previous: $409M-9.4%
Cash & Equivalents

$122M

Previous: $943M-87.1%
Total Assets

$2.61B

Previous: $3.29B-20.7%
Stock-Based Comp

$5M

No prior period

Revenue & EPS history

Carter's · Revenue · Quarterly

$819M

Q3 2022-8.1%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Carter's · $819M total across 3 segments · Q3 2022

  • U.S. Retail
    $408M-12.3%
  • U.S. Wholesale
    $288M-1.9%
  • International
    $122M-6.7%

Forward guidance

For the fourth quarter of fiscal 2022, the Company projects net sales of approximately $845 million to $885 million and adjusted diluted earnings per share of approximately $1.40 to $2.00. For fiscal year 2022, the Company projects net sales of approximately $3.145 billion to $3.185 billion and adjusted diluted earnings per share of approximately $6.05 to $6.65.

Tailwinds

  • Improved price realization
  • Reduced discretionary spending
  • A better mix and level of inventories relative to last year to support holiday demand
  • Continued investment in our direct-to-consumer, customer acquisition, brand marketing, and distribution capabilities
  • Lower interest expense; and Cumulative benefit of share repurchases

Headwinds

  • Continued challenging macroeconomic environment
  • U.S. Retail comparable sales decline of approximately 10% to 15%
  • Lower U.S. Wholesale sales, reflecting risk of lower demand and supply chain delays
  • Lower International sales, driven largely by lower demand in Canada and lower wholesale demand
  • Early indications suggest that holiday shopping may not be as robust as last year

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 Q3 2022

Historical avgQ3 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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