NYSE$CRI

Carter's · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported fourth quarter and fiscal year 2022 results.

Carter's, Inc. reported a decrease in consolidated net sales by 14.1% to $912.1 million and a decrease in diluted earnings per share by 8.7% to $2.11 compared to the fourth quarter of fiscal 2021. The results reflect the impact of inflation on consumer demand and wholesale customers.

  • Net sales for the fourth quarter of fiscal 2022 were $912 million.
  • Diluted EPS for the fourth quarter was $2.11, including a non-cash charge of $0.18 related to the impairment of the Skip Hop tradename; adjusted diluted EPS was $2.29.
  • The company returned $418 million to shareholders through share repurchases and dividends in fiscal year 2022.
  • Carter's expects inflation will continue to weigh on consumers in 2023.

Headline financials

Total Revenue

$912M

Previous: $1.06B-14.1%
EPS (adj)

$2.29

Previous: $2.31-0.9%
Capital Expenditures

$13.5M

Previous: $32.9M-58.9%
Free Cash Flow

$292M

Previous: $557M-47.5%
Net Income

$80.2M

Previous: $98M-18.1%
Operating Income

$110M

Previous: $134M-18.2%
Gross Profit

$416M

Previous: $466M-10.8%
Cash & Equivalents

$212M

Previous: $1.1B-80.8%
Total Assets

$2.44B

Previous: $3.39B-28.1%
Stock-Based Comp

$4.66M

Previous: $12.8M-63.7%

Revenue & EPS history

Carter's · Revenue · Quarterly

$912M

Q4 2022-14.1%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Carter's · $912M total across 3 segments · Q4 2022

  • U.S. Retail
    $526M-12.7%
  • U.S. Wholesale
    $261M-17.8%
  • International
    $125M-12.0%

Forward guidance

For fiscal year 2023, the Company expects net sales of approximately $3.0 billion and adjusted diluted earnings per share of $6.15.

Tailwinds

  • Stronger second half performance as trends in sales, inbound freight, and product costs moderate.
  • Gross margin expansion, driven by improved price realization and lower costs.
  • Comparable SG&A.
  • Continued return of capital initiatives.

Headwinds

  • Continued inflationary pressure on consumer demand and cautious inventory commitments by wholesale customers.
  • Higher interest expense and effective tax rate.

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 Q4 2022

Historical avgQ4 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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