NYSE$CRI

Carter's · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Exceeded sales and earnings objectives, driven by strong U.S. Retail performance and effective pricing and brand marketing strategies.

Carter's Inc. reported better-than-expected Q3 2024 results, with U.S. Retail sales driven by strong product offerings, pricing, and marketing strategies. The company is reaffirming its fiscal year 2024 outlook for sales and adjusted operating income, and raising its adjusted diluted EPS outlook.

  • Net sales were $758 million, compared to $792 million in Q3 2023.
  • Operating margin was 10.2%, compared to 11.8% in Q3 2023; adjusted operating margin was 10.2%, compared to 12.2% in Q3 2023.
  • Diluted EPS was $1.62, compared to $1.78 in Q3 2023; adjusted diluted EPS was $1.64, compared to $1.84 in Q3 2023.
  • The company is reaffirming its fiscal year 2024 outlook for net sales of $2.785 billion to $2.825 billion and adjusted operating income of $240 million to $260 million, and raising its adjusted diluted EPS outlook to $4.70 to $5.15.

Headline financials

Total Revenue

$758M

Previous: $792M-4.2%
EPS

$1.62

Previous: $1.84-12.0%
Capital Expenditures

-$39.6M

Previous: -$42.5M+6.7%
Free Cash Flow

$18.7M

Previous: $23.7M-21.0%
Net Income

$58.3M

Previous: $66.1M-11.8%
Operating Income

$77M

Previous: $93.4M-17.5%
Gross Profit

$356M

Previous: $376M-5.4%
Cash & Equivalents

$176M

Previous: $169M+3.8%
Total Assets

$2.38B

Previous: $2.32B+2.5%
R&D Expense

$0.00

No prior period
Stock-Based Comp

$4.69M

Previous: $3.93M+19.3%

Revenue & EPS history

Carter's · Revenue · Quarterly

$758M

Q3 2024-4.2%vs Q3 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Carter's · $792M total across 3 segments · Q3 2023

  • U.S. Retail
    $375M-8.2%
  • U.S. Wholesale
    $300M+4.1%
  • International
    $117M-4.5%

Forward guidance

For the fourth quarter of fiscal 2024, the Company projects net sales of $800 million to $840 million, adjusted operating income of $70 million to $90 million, and adjusted diluted earnings per share of $1.32 to $1.72.

Tailwinds

  • Lower net interest expense.
  • Lower effective tax rate.
  • Lower share count.

Headwinds

  • Continued macroeconomic pressure on consumer demand.
  • Approximately $30 million of investments in pricing & brand marketing.
  • Lower gross profit margin.
  • Increased SG&A.

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 2024

Historical avgQ3 2024

-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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