Company Overview - Churchill Resources Inc. is a Canadian exploration company focused on high-grade magmatic nickel sulphides, primarily at its Taylor Brook and Florence Lake properties in Newfoundland & Labrador [6][7] - The management team has extensive experience in mineral exploration and establishing successful publicly listed mining companies [6] Recent Developments - The company identified a calculation error in the titanium values for six samples in a previous press release and has issued a correction [1] - The corrected titanium values for samples 884117, 884118, 884121, 884122, 884128, and 247004 have been provided in a revised table [1] Sample Analysis - Lithogeochemical samples were collected by Dr. Wilton during fieldwork in September/October 2024 and analyzed by ALS Geochemistry Ltd. using specific analytical protocols [3] - Assay drill core and rock samples were sent to Eastern Analytical, an ISO/IEC 17025 certified facility, for analysis using ICP 34 protocols [4] Quality Control - Quality control results, including the laboratory's control samples, were evaluated immediately during the analysis process [3][4]

Core Viewpoint - Carter's, Inc. (CRI) shares have declined by 6.6% since the release of its fourth-quarter 2025 earnings, despite surpassing revenue and earnings estimates, due to declining performance in U.S. Retail and International segments overshadowing growth in the U.S. Wholesale division [1][2][4]. Financial Performance - In the fourth quarter, CRI's U.S. Retail segment experienced a 2.8% year-over-year decline in sales, with comparable net sales falling by 3.4%, attributed to softer consumer demand amid economic pressures [6][7]. - The U.S. Wholesale segment, however, saw a 7.3% increase in sales, benefiting from favorable shipment timing and strong partnerships with key retailers [6]. - The International segment faced a 2% sales decline due to ongoing macroeconomic pressures in key markets [7]. Margin Analysis - Gross margin decreased by 90 basis points to 47.8%, impacted by a $30 million pricing investment in U.S. Retail, higher freight rates, and a greater mix of lower-margin wholesale sales [8]. - Adjusted operating margin declined by 250 basis points to 13.4%, driven by pricing investments, rising marketing/store expenses, inbound freight costs, and increased charitable contributions [9]. Future Outlook - Management provided a cautious outlook for 2025, expecting net sales of $615-$625 million for Q1 2025, down from $661 million in the prior-year quarter, with adjusted EPS projected to decline sharply to 45-55 cents from $1.04 [10][11]. - The company anticipates a sales decline in the U.S. Retail segment between mid-single digits and high-single digits, with U.S. Wholesale sales expected to fall in the high-single digits and International sales projected to decline in the mid-single digits [10]. - Adjusted operating income is forecasted to be $180-$210 million, significantly lower than the previous year's $287 million, with adjusted EPS expected to drop to $3.20-$3.80 from $5.81 in 2024 [11]. Strategic Focus - For 2025, the company plans to address profitability challenges by focusing on improving merchandise assortments and strengthening inventory positions rather than relying heavily on pricing actions [12].

Core Viewpoint - Churchill Resources Inc. has reported promising results from its Taylor Brook nickel project, indicating potential for Vanadium-Titanium-Magnetite (VTM) mineralization alongside high-grade nickel-copper-cobalt (Ni-Cu-Co) deposits, suggesting a layered intrusion with significant economic potential [1][4][5] Group 1: Project Updates - Drilling and prospecting in 2024 at the Taylor Brook project have revealed anomalous VTM results at targets TB-01 to TB-04, indicating the area may host critical minerals [1][2] - The mineralized magnetite-layered units at the South Lobe are several meters thick, with VTM values ranging from 540ppm to 955ppm for vanadium, 3.1% to 7.29% for titanium, and over 20% for iron [2][5] - The company plans to conduct systematic trenching and further drilling at TB-01 in Spring 2025 to explore the high chargeability targets identified by Winter Borehole Induced Polarization (BHIP) surveys [6][7] Group 2: Strategic Importance of VTM - VTM minerals are critical for various industries, including steel, aerospace, and battery production, with North America currently lacking domestic vanadium production [5][6] - The layered intrusive mineral deposits typically show a stratified mineralization pattern, with VTM at the upper levels and Ni-Cu-Co deposits deeper within the intrusion [5][6] Group 3: Future Exploration Plans - The company is preparing new exploration permit applications and plans to expand its prospecting, mapping, and trenching efforts at the South Lobe, where less than 10% has been explored [7][8] - The exploration team will also sample existing drill holes for VTM mineralization and platinum group elements (PGEs) to assess deeper mineralization horizons [7][8]

Core Insights - Carter's, Inc. reported fourth-quarter 2024 results with both revenue and earnings exceeding Zacks Consensus Estimates, although year-over-year revenue showed marginal growth while earnings declined [1][3][4] Financial Performance - The company achieved consolidated net sales of $859.7 million, surpassing the Zacks Consensus Estimate of $828 million, reflecting a 0.2% increase from $857.9 million in the prior year [4] - Adjusted earnings per share (EPS) were $2.39, exceeding the Zacks Consensus Estimate of $1.72, but down 13.4% from $2.76 in the same quarter last year [3][4] - Gross profit decreased by 1.7% year over year to $411 million, with gross margin contracting by 90 basis points to 47.8% [9] Segment Performance - U.S. Retail segment sales fell 2.8% year over year to $466.2 million, with comparable net sales down 3.4% [7] - U.S. Wholesale segment sales increased by 7.3% year over year to $265.4 million, benefiting from favorable shipment timing [7] - International segment sales dropped by 2% year over year to $128.1 million [8] Cost and Margin Analysis - Adjusted operating income decreased by 15.4% year over year to $21 million, with adjusted operating margin down 250 basis points to 13.4% [10] - Selling, general and administrative (SG&A) expenses rose by 5.3% year over year to $302.1 million, accounting for 35.1% of net sales [11] Shareholder Returns - Carter's returned $28.8 million to shareholders through cash dividends in the fourth quarter, totaling $166.7 million for the year [12][13] - The company repurchased nearly 0.7 million shares for $50.5 million at an average price of $68.61 per share [13] Future Outlook - For Q1 2025, net sales are expected to be between $615 million and $625 million, down from $661 million in the prior year, with adjusted EPS projected at 45-55 cents [14] - For the full year 2025, net sales are anticipated to be between $2.78 billion and $2.86 billion, with adjusted operating income expected to be $180-$210 million [16] - The company expects a mid-single-digit decline in U.S. Retail sales and comparable store sales, with improvements anticipated in the second half of 2025 [17][18]

Carter's, Inc. (NYSE:CRI) Q4 2024 Earnings Conference Call February 25, 2025 8:30 AM ET Company Participants Richard Westenberger - Interim CEO, CFO and COO Kendra Krugman - Chief Creative and Growth Officer Sean McHugh - Treasurer Conference Call Participants Jim Chartier - Monness, Crespi, and Hardt Chris Nardone - Bank of America William Reuter - Bank of America Kelly Crago - Citi Operator Welcome to Carter's fourth quarter fiscal 2024 earnings conference call. On the call are Richard Westenberger, Inter ...

Market Position and Sales - The baby and young children's apparel market in the U.S. is approximately $28 billion as of December 2024, with Carter's brands holding a 1 position and approximately 10% market share[23]. - Carter's brands maintained a leading market share of approximately 21% in the zero to two-year-old baby market and approximately 11% in the three to four-year-old toddler market as of December 2024[33]. - In fiscal 2024, approximately 36% of consolidated net sales were derived from the U.S. Wholesale segment, with the top ten wholesale customers accounting for about 35% of consolidated net sales[107]. - The two largest wholesale customers represented 10.9% and 10.1% of consolidated net sales in fiscal 2024[107]. - As of the end of fiscal 2024, around 83% of gross accounts receivable were from the ten largest wholesale customers, with three customers having individual receivable balances exceeding 10% of total accounts receivable[108]. - The company experienced a decrease in net sales in the eCommerce channel for both fiscal 2024 and fiscal 2023 compared to fiscal 2022[115]. - The U.S. Wholesale segment's two largest customers accounted for 10.9% and 10.1% of consolidated net sales in fiscal 2024[52]. Retail Operations - The company operates 1,057 company-owned retail stores in North America and approximately 19,500 wholesale locations in North America as of the end of fiscal 2024[24]. - In fiscal 2024, the company opened its first flagship store in Atlanta, Georgia, featuring brand-centric presentations and community engagement events[46]. - The company has optimized its retail store fleet and improved marketing effectiveness, including the relaunch of its loyalty program in fiscal 2024[216]. - The company operates 804 retail stores in the United States, 191 in Canada, and 62 in Mexico, with an average remaining lease term of approximately 3.4 years[188]. Supply Chain and Sourcing - Approximately 75% of products were sourced from Vietnam, Cambodia, Bangladesh, and India, while 60% of fabric was sourced from China in fiscal 2024[58]. - The company actively monitors import restrictions and seeks to minimize exposure to import-related risks through geographical diversification of supply sources[70]. - The company relies on foreign-based suppliers and manufacturers, making it vulnerable to global sourcing and manufacturing risks[89]. - Approximately 60% of the fabric used in product manufacturing is sourced from China, indicating a significant reliance on this region[131]. - The Uyghur Forced Labor Prevention Act, effective June 21, 2022, imposes a presumptive ban on imports from the Xinjiang Uyghur Autonomous Region, potentially affecting global supply chains[129]. - Labor disputes at third-party factories and shipping ports have previously resulted in significant backlogs and delays in product delivery[132]. Financial Performance and Risks - The company has significant debt, which could adversely affect its financial health and ability to obtain future financing[90]. - The company’s profitability may decline due to lower margins from deflationary pressures and increased production costs[89]. - The company is subject to increasing scrutiny regarding environmental, social, and governance (ESG) practices, which may lead to additional compliance costs[123]. - The company has set goals related to ESG topics but may face challenges in meeting these targets, potentially impacting its reputation and financial condition[124]. - The company is vulnerable to disruptions in its global supply chain due to political instability, natural disasters, and financial instability of major vendors[129]. - The company’s failure to comply with various laws and regulations could result in fines, penalties, and damage to its reputation, negatively affecting its business operations[151]. Marketing and Customer Engagement - The company plans to enhance its marketing capabilities, which contributed to sequential improvement in U.S. Retail comparable sales and growth in new and reactivated customers in the second half of fiscal 2024[32]. - The rebranded Carter's Rewards loyalty program aims to deepen customer loyalty and increase visit frequency, with U.S. retail sales predominantly made to members[56]. - A strategic investment of approximately $65 million was made to enhance direct-to-consumer offerings, including $55 million for pricing competitiveness and $10 million for brand marketing[217]. Employee and Operational Management - As of the end of fiscal 2024, the company had approximately 15,350 employees globally, with 79.3% located in the United States[74]. - The company has faced significant competition in hiring employees for its distribution facility, which may lead to additional employee-related costs[136]. - The company has increased wages to attract and retain employees at its Braselton, Georgia distribution facility, impacting operating results[136]. - The company relies on automated systems for eCommerce order processing, and any system failures could negatively impact sales and profitability[137]. Environmental and Social Governance - Over 50% of cotton was sourced through the Better Cotton Initiative, supporting the transition to sustainably grown cotton[66]. - The company has established targets to reduce risks associated with Scope 1 and 2 greenhouse gas emissions, validated by the Science-Based Target Initiative[66]. - The company has implemented various cybersecurity controls, including intrusion prevention and access controls, to mitigate risks from cybersecurity threats[179]. Strategic Initiatives and Future Outlook - The company intends to pursue improvements to its operating model to respond more rapidly to changing consumer preferences and improve productivity[30]. - Future growth is heavily dependent on successful branding and marketing efforts, which, if unsuccessful, could diminish brand value and sales[102]. - The company’s international expansion plans may not be successful, as it lacks significant experience operating outside North America, which could adversely affect its results[149]. - The company may be unable to grow through acquisitions if it cannot identify suitable candidates or secure favorable terms, which could adversely impact its financial condition[159].

F O U R T H Q U A R T E R A N D F I S C A L Y E A R 2 0 2 4 B U S I N E S S U P D A T E F E B R U A R Y 2 5 , 2 0 2 5 F O U R T H Q U A R T E R 2 0 2 4 R E S U L T S G A A P B A S I S $ in millions, except EPS | | Fourth | | Fourth | | | | --- | --- | --- | --- | --- | --- | | | Quarter | | Quarter | | | | | 2024 | % of Sales | 2023 | % of Sales | Change | | Net sales | $860 | | $858 | | -- | | Gross profit | 411 | 47.8% | 418 | 48.7% | (2%) | | Royalty income, net | 4 | 0.5% | 5 | 0.6% | (11%) | | SG&A | 3 ...

Carter's (CRI) came out with quarterly earnings of $2.39 per share, beating the Zacks Consensus Estimate of $1.72 per share. This compares to earnings of $2.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 38.95%. A quarter ago, it was expected that this maker of children's apparel and accessories would post earnings of $1.29 per share when it actually produced earnings of $1.64, delivering a surprise of 27.13%.Over the last ...

Financial Performance - Fourth quarter fiscal 2024 net sales were $860 million, a slight increase of 0.2% from $858 million in Q4 2023[2]. - Fiscal year 2024 net sales totaled $2.844 billion, a decline of 3.4% from $2.946 billion in 2023[2][19]. - For the fiscal quarter ended December 28, 2024, consolidated net sales reached $859.7 million, a slight increase from $857.9 million in the same quarter of the previous year[45]. - For the fiscal year ended December 28, 2024, consolidated net sales totaled $2,844.1 million, down 3.4% from $2,945.6 million in the prior year[63]. - International segment net sales for the same quarter were $128.1 million, showing a 2.0% decline year-over-year[63]. - International segment net sales for the fiscal year were $405.6 million, representing a 5.5% decrease compared to $429.2 million in the previous year[63]. Profitability Metrics - Operating margin for Q4 2024 decreased to 9.7% from 15.9% in Q4 2023, while adjusted operating margin was 13.4% compared to 15.9% in the prior year[2][15]. - Diluted EPS for Q4 2024 was $1.71, down 41.0% from $2.90 in Q4 2023; adjusted diluted EPS decreased to $2.39 from $2.76[2][17][18]. - Operating income for fiscal 2024 decreased by 21.2% to $254.7 million, with an operating margin of 9.0% compared to 11.0% in 2023[2][21]. - The company's net income for the fiscal year ended December 28, 2024, was $185.5 million, down from $232.5 million in the previous year[52]. - For the fiscal quarter ended December 28, 2024, the company reported net income of $61.5 million, with diluted EPS of $1.71, reflecting a 9.7% operating income margin[54]. - The fiscal year ended December 28, 2024, showed a net income of $185.5 million and diluted EPS of $5.12, with an operating income margin of 9.0%[54]. Cash Flow and Shareholder Returns - The company generated operating cash flow of $299 million in fiscal 2024, with total liquidity exceeding $1 billion at year-end[2][5][25]. - The company returned $167 million to shareholders through dividends and share repurchases in fiscal 2024[2][26]. - The Company paid a cash dividend of $0.80 per common share totaling $28.8 million in Q4 fiscal 2024, and $116.2 million for the entire fiscal year 2024[30]. - The Company repurchased approximately 0.7 million shares for $50.5 million in fiscal 2024, representing about 2.0% of common shares outstanding at the beginning of the fiscal year[30]. Future Outlook - Fiscal year 2025 outlook projects net sales between $2.780 billion and $2.855 billion, with adjusted diluted EPS expected to range from $3.20 to $3.80[2][28]. - For fiscal year 2025, the Company projects net sales between $2.780 billion and $2.855 billion, compared to $2.844 billion in fiscal 2024[31]. - Adjusted operating income is expected to be between $180 million and $210 million, down from $287 million in fiscal 2024[31]. - Adjusted diluted earnings per share are projected to be between $3.20 and $3.80, a decrease from $5.81 in fiscal 2024[31]. - In Q1 fiscal 2025, net sales are projected to be between $615 million and $625 million, down from $661 million in Q1 fiscal 2024[34]. - The outlook for fiscal year 2025 excludes pre-tax expenses of approximately $8 million to $9 million related to the retirement of the previous CEO[32]. Operational Insights - U.S. Retail comparable net sales declined 6.9% in fiscal 2024, while U.S. Wholesale net sales grew by 0.7%[19][21]. - The company is focusing on improving merchandise assortments and inventory positions to enhance profitability in 2025[6][7]. - The company anticipates a mid-single-digit decline in U.S. Retail sales and a high single-digit decline in U.S. Wholesale sales for Q1 fiscal 2025[33]. - The company's SG&A expenses for the fiscal year ended December 28, 2024, were reported at $1,099.7 million, representing 38.7% of net sales[54]. Asset and Liability Management - Total assets increased to $2.43 billion as of December 28, 2024, compared to $2.38 billion at the end of the previous fiscal year[49]. - Total liabilities increased to $1.58 billion as of December 28, 2024, compared to $1.53 billion at the end of the previous fiscal year[49]. - Cash and cash equivalents at the end of the fiscal year were $412.9 million, an increase from $351.2 million at the end of the previous year[52]. Impairment and Restructuring - The company incurred a non-cash impairment charge of $30 million related to intangible assets during the fiscal year[52]. - The company incurred a non-cash impairment charge of $30 million related to intangible assets during the fiscal quarter ended December 28, 2024[59]. - The organizational restructuring expenses for fiscal 2024 amounted to $1.8 million, impacting the operating income[59]. - The company experienced a benefit from a credit card settlement, which resulted in a reduction of $5.3 million in net income for the fiscal year ended December 30, 2023[59]. Currency Impact - The company evaluates net sales on both an "as reported" and a "constant currency" basis to exclude the impact of foreign currency fluctuations[63]. - The constant currency net sales for the fiscal quarter were $865.6 million, indicating a 0.9% increase from the prior year[63]. - The constant currency net sales for the fiscal year were $2,851.5 million, reflecting a 3.2% decrease compared to the previous year[63]. - The impact of currency translation for the fiscal quarter was a negative $5.9 million on both consolidated and international segment net sales[63]. - The company consistently applies its approach to net sales for all countries where the functional currency is not the U.S. dollar[63].

Core Viewpoint - Carter's, Inc. is expected to report a decline in both revenue and earnings for the fourth quarter of 2024, influenced by various economic factors and increased operational costs [1][4][6]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter revenues is $828.5 million, reflecting a 3.4% decrease from the previous year [2]. - The consensus estimate for quarterly earnings is $1.72 per share, indicating a significant drop of 37.7% compared to the same quarter last year [2]. Performance Factors - The anticipated decline in performance is attributed to inflation, high interest rates, and the cessation of pandemic-related stimulus payments, leading to reduced demand for products [4]. - Increased selling, general and administrative expenses (SG&A) are expected to further strain operating margins, driven by fixed cost deleverage from lower sales and rising distribution and transportation costs [4][5]. Sales Projections - Management projected net sales between $800 million and $840 million for the fourth quarter, down from $858 million in the previous year [6]. - Comparable sales in the U.S. Retail business are expected to decline by 9-12%, with a predicted overall sales drop of 9.3% in the U.S. Retail segment and 5.5% in the International segment [7]. Strategic Initiatives - To counteract these challenges, Carter's is focusing on improved pricing strategies, optimized inventory management, and enhancing e-commerce capabilities [8]. Valuation Perspective - Carter's is currently trading at a forward 12-month price-to-earnings ratio of 10.76x, which is below its five-year high of 21.14x and the industry average of 28.1x, presenting a potentially attractive investment opportunity [12]. Market Performance - Over the past three months, Carter's shares have increased by 0.5%, while the industry has seen a growth of 4% [13].