NYSE$CRI

Carter's · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Carter's reported slight increase in net sales, but a decrease in operating margin and diluted EPS compared to the same quarter last year.

Carter's, Inc. reported its fourth quarter and fiscal year 2024 results. Net sales increased slightly, but operating margin and diluted EPS decreased compared to the fourth quarter of fiscal 2023. The company's U.S. Wholesale segment grew, while U.S. Retail and International segments declined. Macroeconomic factors continued to weigh on families with young children and demand for the company's brands.

  • Net sales increased $1.8 million, or 0.2%, to $859.7 million.
  • Operating margin decreased 620 basis points to 9.7%.
  • Adjusted operating margin decreased 250 basis points to 13.4%.
  • Diluted earnings per share decreased 41.0% to $1.71.

Headline financials

Total Revenue

$860M

Previous: $858M+0.2%
EPS (adj)

$2.39

Previous: $2.76-13.4%
Dividends Paid

$0.00

No prior period
Net Income

$61.5M

Previous: $107M-42.3%
Operating Income

$83.2M

Previous: $136M-38.9%

Revenue & EPS history

Carter's · Revenue · Quarterly

$860M

Q4 2024+0.2%vs Q4 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 fiscal year 2025, the Company projects net sales of $2.780 billion to $2.855 billion, adjusted operating income of $180 million to $210 million, and adjusted diluted earnings per share of $3.20 to $3.80.

Tailwinds

  • Sales and earnings contributions weighted to the second half, driven by planned improvements in our product assortments and a better overall inventory position in the second half
  • Targeted pricing investments and freight costs to be less impactful in the second half
  • Comparable to a mid-single-digit decline in U.S. Retail sales
  • Low single-digit growth to a low single-digit decline in U.S. Wholesale sales
  • Low single-digit growth to comparable International sales

Headwinds

  • Lower gross margin rate, reflecting targeted retail pricing investments, changes in customer mix within wholesale, adverse currency exchange rate impacts, and higher product costs
  • Increased SG&A, principally reflecting higher variable compensation provisions and growth-related investments, partially offset by productivity initiatives
  • Higher net interest expense and effective tax rate
  • Comparable average number of shares outstanding
  • For the first quarter of fiscal 2025, the Company projects net sales of $615 million to $625 million

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 2024

Historical avgQ4 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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