TORONTO, June 12, 2025 (GLOBE NEWSWIRE) -- Churchill Resources Inc. (“Churchill” or the “Company”) (TSXV: CRI) is pleased to announce that due-diligence sampling at the historical Frost Cove Antimony mine and the Stewart Gold mine on its Black Raven property returned assays of 35.1% and 29.7% antimony and 14.4 g/t gold, respectively. These samples exceeded the laboratory’s original detection limit for those elements (see release of May 28th 2025), and the results reported herein are from the overage assayin ...

Core Insights - Nike, Carter's, and Wendy's will trade ex-dividend on 6/2/25, with respective dividends of $0.40, $0.25, and $0.14 [1] - The estimated annualized yields for these companies are 2.59% for Nike, 2.99% for Carter's, and 5.01% for Wendy's [3] Dividend Details - Nike's quarterly dividend of $0.40 will be paid on 7/1/25 [1] - Carter's quarterly dividend of $0.25 will be paid on 6/20/25 [1] - Wendy's quarterly dividend of $0.14 will be paid on 6/16/25 [1] Stock Price Impact - Nike shares are expected to open 0.65% lower, Carter's 0.75% lower, and Wendy's 1.25% lower on 6/2/25 due to the dividend payouts [2] - Current trading performance shows Nike shares down about 1.7%, Carter's up about 3.3%, and Wendy's down about 0.3% [4]

Core Insights - Churchill Resources Inc. has reported significant assay results from due-diligence sampling at the Frost Cove Antimony and Stewart Gold mines, indicating grades of over 10% antimony and over 10 g/t gold, respectively [1][2][8] - The company has executed a definitive agreement to acquire a 100% interest in the Black Raven Antimony Property, which is expected to enhance its strategic focus on antimony and gold [2][23] - The Black Raven property is situated in a geologically favorable area with a history of high-grade mineralization, and systematic exploration is planned to further assess its potential [3][5][24] Company Overview - Churchill Resources Inc. is focused on strategic critical minerals in Canada, particularly at its Black Raven property, which encompasses past-producing mines [30][31] - The company aims to leverage Newfoundland and Labrador's robust minerals industry, which includes world-class mines and processing facilities, to enhance its exploration efforts [6][30] Industry Context - Antimony is classified as a critical mineral, essential for national security and modern technology, with over 90% of global production controlled by non-Western countries [7] - Recent export restrictions from China have led to record prices for antimony, exceeding $50,000 per tonne, highlighting the strategic importance of domestic sources in North America [7] - The demand for antimony is driven by its applications in military, flame retardants, and emerging energy storage technologies, making it increasingly vital for economic and national security [7]

Core Insights - Carter's, Inc. reported first-quarter 2025 results that exceeded Zacks Consensus Estimates for both sales and earnings, but showed a year-over-year decline in both metrics [1][4] - The company's shares fell over 10% following the weak results and the suspension of financial guidance, attributed to a recent CEO transition [2][3] Financial Performance - Adjusted earnings per share (EPS) were 66 cents, surpassing the Zacks Consensus Estimate of 53 cents, but down 36.5% from $1.04 in the prior-year quarter [4] - Consolidated net sales reached $629.8 million, beating the Zacks Consensus Estimate of $621 million, but declined 4.8% from $661.5 million in the same period last year [4] - The U.S. Retail segment sales decreased 4.3% year over year to $294.4 million, while the U.S. Wholesale segment sales fell 5.3% to $250.1 million [8] - The International segment saw a 4.9% drop in sales to $85.3 million [9] Margin Analysis - Gross profit decreased 7.6% year over year to $291.1 million, with gross margin contracting 140 basis points to 46.2% [10] - Adjusted operating income fell 35.7% year over year to $35.4 million, and adjusted operating margin decreased 270 basis points to 5.6% [11] Financial Position - As of the end of the first quarter 2025, the company had cash and cash equivalents of $320.9 million, long-term debt of $498.3 million, and shareholders' equity of $847.3 million [12] - The company returned $29 million to shareholders through cash dividends, paying 80 cents per common share [12]

F I R S T Q U A R T E R 2 0 2 5 B U S I N E S S U P D A T E A P R I L 2 5 , 2 0 2 5 F I R S T Q U A R T E R 2 0 2 5 R E S U L T S G A A P B A S I S $ in millions, except EPS | | First | | First | | | | --- | --- | --- | --- | --- | --- | | | Quarter | | Quarter | | | | | 2025 | % of Sales | 2024 | % of Sales | Change | | Net sales | $630 | | $661 | | (5%) | | Gross profit | 291 | 46.2% | 315 | 47.6% | (8%) | | Royalty income, net | 5 | 0.8% | 5 | 0.8% | 2% | | SG&A | 270 | 42.9% | 265 | 40.1% | 2% | | Opera ...

Financial Data and Key Metrics Changes - The company reported net sales of $630 million in Q1, down 5% from the previous year [23] - Adjusted operating income was $35 million, with an adjusted operating margin of 5.6% and adjusted EPS of $0.66, compared to $1.04 in the same quarter last year [24][28] - Gross margin declined to 46.2%, a decrease of 140 basis points year-over-year, primarily due to pricing investments in U.S. retail and negative foreign exchange impacts [25] Business Segment Data and Key Metrics Changes - U.S. Retail net sales declined 4%, with comparable sales down about 5%, although March showed improvement with comps up about 13% [30][35] - U.S. Wholesale sales also decreased by 5% year-over-year, but were better than planned due to higher demand from several customers [36] - International segment sales fell by 5%, impacted by unfavorable foreign currency exchange rates, but showed strong comparable sales in Canada and Mexico [38] Market Data and Key Metrics Changes - The company faced significant market volatility due to proposed record tariffs on imports, leading to concerns about inflation and consumer confidence [18] - Consumer confidence has dropped rapidly, affecting retail performance and leading to cautious behavior from wholesale customers [90] Company Strategy and Development Direction - The new CEO emphasized a focus on sustainable, long-term growth rather than short-term sales boosts through discounts [9][12] - The company is working on a clear strategy to return to growth, balancing financial efficiency with strategic investments [10][12] - There is a strong emphasis on improving product and brand development processes to better respond to consumer preferences [20] Management's Comments on Operating Environment and Future Outlook - Management suspended forward-looking guidance due to the leadership transition and economic uncertainty related to tariffs [11][52] - The CEO expressed confidence in the company's brand strength and market distribution, indicating a positive long-term outlook despite current challenges [59][62] - The CFO noted that while tariffs would increase product costs, the company is exploring various mitigation strategies [75] Other Important Information - The company has a solid balance sheet with total liquidity over $1 billion and cash on hand exceeding $300 million [40] - Capital expenditures were $10 million, primarily for new stores and distribution network improvements [41] - The company has reduced reliance on China for production, with less than 2% of apparel sourced from there [46] Q&A Session Summary Question: Initial thoughts on the business and opportunities for improvement - The CEO expressed excitement about the brand and confidence in future success, highlighting the strength of brand assets and market distribution [59] Question: Clarification on estimated annual effective tariff rates - The CFO explained that the rates presented were hypothetical and based on proposed tariffs, indicating potential material increases in product costs [60][62] Question: Potential for reducing China exposure - The CFO noted that while most branded apparel is no longer produced in China, some accessories and components still are, but efforts are ongoing to migrate production [70] Question: Timing of tariff-impacted goods hitting shelves - The CFO indicated that the first imports subject to tariffs would arrive around mid-May, but existing inventory would provide some buffer [74] Question: Inventory adjustments and retail partner behavior - The CFO mentioned that inventory adjustments were modest and primarily related to the U.S. retail business, with no significant trends in order cancellations from wholesale partners [88] Question: Retail comp improvement and pricing strategies - Management noted that product strategies are working, with improved conversion rates and sell-throughs, and competitive pricing is driving unit sales [101] Question: Visibility on other costs like cotton and freight - The CFO provided a favorable outlook for cotton prices, while noting some inflation in labor and modest increases in freight costs [106][108] Question: Impact of tariffs on guidance - The CFO stated that both the leadership transition and tariff uncertainty contributed to the decision to suspend guidance [115]

Financial Data and Key Metrics Changes - The company reported net sales of $630 million in Q1 2025, down 5% from the previous year [17] - Adjusted operating income was $35 million, representing an adjusted operating margin of 5.6%, with adjusted EPS at $0.66 compared to $1.40 in Q1 2024 [18][21] - Gross margin declined to 46.2%, a decrease of 140 basis points year-over-year, primarily due to pricing investments in U.S. Retail and negative foreign exchange impacts [18][19] Business Segment Data and Key Metrics Changes - U.S. Retail net sales declined 4%, with comparable sales down about 5%, although March showed significant improvement [23][27] - U.S. Wholesale sales also decreased by 5%, with operating margin at 22.1%, down from 24% a year ago [28] - International segment sales fell 5%, impacted by unfavorable foreign currency exchange rates, but showed strong comparable sales growth in Canada and Mexico [30] Market Data and Key Metrics Changes - The company faced a tumultuous market backdrop due to proposed record tariffs, leading to concerns about inflation and consumer confidence [12][13] - The pricing investments in U.S. Retail were approximately $12 million for Q1, with plans to maintain a total of $20 million for the first half of the year [24] Company Strategy and Development Direction - The new CEO emphasized a focus on sustainable, long-term growth rather than short-term sales boosts through discounts [5][6] - The company is suspending forward-looking guidance due to leadership transition and economic uncertainty related to tariffs [8][41] - A clear strategy is being developed to return the brand to accretive growth, with a focus on financial efficiency and product quality [9][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the current tariff situation and its impact on financial forecasting [9][41] - The leadership team is optimistic about the company's long-term prospects despite current market challenges [41] Other Important Information - The company has a solid balance sheet with total liquidity exceeding $1 billion and cash on hand of over $300 million [31] - Capital expenditures were $10 million, primarily for new stores and distribution network improvements [32] Q&A Session Summary Question: Initial thoughts on the business and opportunities for financial performance improvement - The new CEO expressed optimism about the brand's strength and market distribution, looking forward to sharing a revised strategy [44] Question: Clarification on estimated annual effective tariff rates - Management clarified that the tariff rates presented were hypothetical and based on proposed reciprocal tariffs, which would significantly increase product costs if implemented [46] Question: Potential for reducing reliance on China for production - Management indicated that while reliance on China has decreased significantly, some production, particularly for accessories, remains [52] Question: Timing of tariff-impacted goods hitting shelves and mitigation efforts - The first imports subject to tariffs are expected around May, but existing inventory provides some buffer [56] Question: Visibility on other costs such as cotton, freight, and labor - Cotton prices are favorable, while labor costs are expected to see some inflation, and transportation costs are manageable due to successful renegotiations [80][83]

Company Performance - Carter's reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, but down from $1.02 per share a year ago, representing an earnings surprise of 24.53% [1] - The company posted revenues of $629.83 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.37%, but down from $661.49 million year-over-year [2] - Over the last four quarters, Carter's has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Carter's shares have declined approximately 29.5% since the beginning of the year, compared to a decline of 6.8% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $578.83 million, and for the current fiscal year, it is $3.72 on revenues of $2.79 billion [7] Industry Context - The Shoes and Retail Apparel industry, to which Carter's belongs, is currently ranked in the bottom 8% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Carter's stock performance [5]

Financial Performance - Net sales for Q1 fiscal 2025 decreased by $31.7 million, or 4.8%, to $629.8 million compared to $661.5 million in Q1 fiscal 2024[11] - Diluted EPS for Q1 fiscal 2025 was $0.43, down from $1.04 in Q1 fiscal 2024; adjusted diluted EPS was $0.66 compared to $1.04 in the prior year[6] - Operating income fell by $28.9 million, or 52.6%, to $26.1 million, with an operating margin of 4.1%, down from 8.3% in the previous year[12] - Net income for the quarter was $15.5 million, down from $38.0 million in the same quarter last year[36] - For the fiscal quarter ended March 29, 2025, the net income was $15.5 million, a decrease of 59.3% compared to $38.0 million for the same period in 2024[47] - The diluted net income per common share for the quarter was $0.43, down from $1.04 in the prior year, reflecting a decline of 58.7%[47] - Adjusted EBITDA for the quarter was $48.6 million, compared to $69.6 million in the same quarter last year, representing a decrease of 30.2%[47] Sales Performance - U.S. Retail comparable net sales declined by 5.2%, while eCommerce outperformed physical stores[11] - International segment net sales declined by 4.9%, with strong demand noted in Canada and Mexico[5] - U.S. Retail segment net sales were $294.4 million, down 4.3% from $307.6 million year-over-year, while U.S. Wholesale segment net sales decreased by 5.3% to $250.1 million from $264.1 million[30] - Consolidated net sales for the fiscal quarter ended March 29, 2025, were $629.8 million, a decrease of 4.8% from $661.5 million for the same period in 2024[30] - The impact of foreign currency translation on consolidated net sales was a decrease of $6.4 million, leading to constant currency net sales of $636.2 million[52] - International segment net sales were $85.3 million, with a 4.9% decline due to foreign currency impact, but showed a 2.2% increase on a constant currency basis compared to the previous year[52] Operational Costs - The company incurred pre-tax expenses of $6.1 million related to the previous CEO's retirement and $3.2 million for operating model improvements[9] - The company experienced a significant increase in stock-based compensation expense, rising to $9.8 million from $5.2 million year-over-year[36] - The company incurred $9.3 million in adjustments to EBITDA, primarily related to leadership transition and operating model improvement costs[47] Cash Flow and Assets - Net cash used in operations increased to $48.6 million in Q1 fiscal 2025, compared to $25.6 million in the prior year[15] - Cash and cash equivalents at the end of the period were $320.8 million, a decrease from $412.9 million at the beginning of the period[36] - Total assets decreased to $2.33 billion from $2.43 billion at the end of the previous quarter[34] - The company reported a net cash used in operating activities of $48.6 million, compared to $25.6 million in the prior year[36] Shareholder Returns and Future Guidance - The company returned $29 million to shareholders through dividends in Q1 fiscal 2025[17] - The leadership transition and tariff uncertainties have led the company to suspend forward-looking guidance[20] - The company plans to evaluate future capital distributions based on business conditions and financial performance[17] - The company allocated $285,000 to participating securities, compared to $691,000 in the previous year, indicating a reduction in this allocation[47] - The company has excluded $8.2 million in after-tax expenses from its adjusted results for the fiscal quarter ended March 29, 2025[47]

Core Viewpoint - Carter's, Inc. is expected to report a decline in both revenue and earnings for the first quarter of 2025, influenced by challenging macroeconomic conditions and reduced consumer demand [1][3][4]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for first-quarter revenues is $621.3 million, reflecting a 6.1% decrease from the previous year [2]. - The consensus estimate for quarterly earnings is 53 cents per share, indicating a 48% decline from the year-ago quarter [2]. - Carter's has a trailing four-quarter earnings surprise of 45.7%, with the last quarter's earnings beating the Zacks Consensus Estimate by 39% [2]. Market Conditions and Challenges - The company faces persistent inflation and high interest rates, which are significant hurdles for its core demographic of families with young children [3]. - Consumer demand for Carter's products has weakened due to reduced discretionary income and the absence of pandemic-era financial support [3]. - The retail segment is expected to experience continued softness in consumer spending, while the wholesale business shows some resilience [4]. Financial Performance Expectations - Carter's projected net sales for the first quarter of 2025 are between $615 million and $625 million, down from $661 million in the previous year [7]. - Adjusted earnings are expected to be between 45 and 55 cents per share, a decline from $1.04 reported in the prior-year quarter [7]. - The company anticipates adjusted operating income of $30 million to $35 million, down from $55 million in the year-ago quarter, with an expected adjusted operating income of $31.4 million, representing a 43% year-over-year decrease [7]. Sales Projections - Total sales in the U.S. Retail business are expected to decline in the mid-single-digit to high-single-digit range [8]. - U.S. Wholesale sales are anticipated to decrease by high-single digits year-over-year, while international sales are expected to dip in the mid-single digits [8]. - Comparable sales in the U.S. Retail business are projected to be down mid- to high-single digits, with a model predicting a 6% decline in U.S. Retail and a 6.9% decline in U.S. Wholesale [8]. Cost and Margin Pressures - The company has been experiencing higher selling, general and administrative expenses (SG&A) as a percentage of sales, due to fixed cost deleverage from lower sales and increased distribution and transportation costs [5]. - The higher SG&A expense rate is expected to strain operating margins and reduce profitability [5]. Strategic Initiatives - Carter's is focusing on strategic initiatives to improve long-term performance, including enhancing merchandise assortments and refining inventory management [9]. - The company is implementing measures such as improved pricing and optimized inventory management, along with strengthening its e-commerce capabilities [9]. Valuation Perspective - From a valuation standpoint, Carter's is trading at a forward 12-month price-to-earnings ratio of 9.89X, which is below its five-year high of 21.14X and the industry average of 21.58X, presenting an attractive opportunity for investors [12]. - CRI's shares have lost 30.5% in the past three months, compared to a 24.5% decline in the industry [13].