Guess designs, markets, distributes and licenses casual apparel and accessories for men, women and children, per the American lifestyle and European fashion sensibilities. GES carries a Zacks Rank #2 at present. Image Source: Zacks Investment Research Carters has been contending with softness in the top line, which declined 4.9% during the first quarter of 2024, following a decline of 5.9% in the preceding quarter. The company cited inflation, higher interest rates, increased consumer debt levels, and reces ...

JHVEPhoto Becoming a father truly does change your perspective on things and I can definitely say that I have become more cognizant of the things that I do around my son (especially when it comes to cell phone usage) because I know that everything I do will ultimately have a positive or negative implication on him. I expected that quite a bit would change in my life, but I never expected that this new journey would have an impact on how I look at investing, specifically an investment like Carter's (NYSE:CRI ...

Carter's, Inc. (CRI) has been capitalizing on its pricing strategy, efficient inventory management and enhanced product offerings. It has also witnessed benefits from favorable ocean freight rates, lower inventory levels and decreased distribution and freight costs, all of which have been positively impacting margins and bottom-line growth. Carter's has experienced a considerable expansion in margin rates, with lower ocean freight rates and reduced product costs being the primary drivers. These factors cont ...

Carter's, Inc. (CRI) came up with its first-quarter 2024 results, wherein the top line beat the Zacks Consensus Estimate but declined year over year. Nonetheless, the bottom line improved from the year-ago period.The company experienced higher and earlier-than-expected demand from its largest wholesale customers, attributed to leaner retailer inventories and a need for new seasonal products.However, cooler weather across many parts of the United States dampened the demand for Carter's Spring product offerin ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric tha ...

With respect to our U.S. wholesale business, were we are projecting low-single digit growth in sales this year, a bit better growth than we envisioned in February. Our growth this year is expected to be driven by our exclusive brand and club retailers. We're also forecasting growth with our OshKosh, Skip Hop and Little Planet brands in wholesale this year. We're forecasting lower sales to department stores and off-price retailers. We continue to benefit from the shift in traffic to mass channel retailers th ...

[Q1 2024 Performance Overview & CEO Commentary](index=1&type=section&id=Carter%27s%2C%20Inc.%20Reports%20First%20Quarter%20Fiscal%202024%20Results) Carter's, Inc. exceeded Q1 2024 sales and earnings targets, driven by strong wholesale demand and shareholder returns, despite mixed retail and international performance Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Sales | $661 million | $696 million | | Diluted EPS | $1.04 | $0.95 | | Adjusted Diluted EPS | $1.04 | $0.98 | - The company **exceeded its Q1 sales and earnings objectives**, primarily due to higher and earlier than planned demand from its largest wholesale customers, attributed to leaner inventory positions at many retailers[2](index=2&type=chunk) - Cooler weather in many parts of the United States **negatively impacted demand** for Spring product offerings in the U.S. Retail business[2](index=2&type=chunk) - International sales were in line with plans, as **stronger demand in Mexico compensated for lower, weather-impacted sales in Canada**[7](index=7&type=chunk) - A total of **$38 million was returned to shareholders** through dividends and share repurchases during the first quarter[1](index=1&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Results) Consolidated net sales declined in Q1 2024 due to inflation and late spring, yet operating margin and net income improved Consolidated Financial Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $661.5M | $695.9M | -4.9% | | Operating Income | $55.0M | $56.4M | -2.3% | | Operating Margin | 8.3% | 8.1% | +20 bps | | Net Income | $38.0M | $36.0M | +5.6% | | Diluted EPS | $1.04 | $0.95 | +9.5% | - The decline in net sales was driven by the persistent effects of inflation on families and the late arrival of spring weather, which contributed to **lower demand across all segments**[12](index=12&type=chunk) - Operating margin increased primarily due to **lower inbound freight and product costs**, partially offset by fixed cost deleverage on lower sales and new store expenses[14](index=14&type=chunk) - Net cash used in operations was **$25.6 million**, a significant change from the **$42.2 million** provided by operations in the prior year, mainly due to smaller reductions in inventory balances[20](index=20&type=chunk) [Business Segment Results](index=10&type=section&id=BUSINESS%20SEGMENT%20RESULTS) All segments saw sales declines in Q1 2024, with U.S. Wholesale profitability rising while U.S. Retail and International declined Segment Net Sales | Segment Net Sales | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | U.S. Retail | $307.6M | $323.7M | -5.0% | | U.S. Wholesale | $264.1M | $280.0M | -5.7% | | International | $89.7M | $92.2M | -2.7% | Segment Operating Income | Segment Operating Income | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | U.S. Retail | $14.3M | $26.9M | -46.8% | | U.S. Wholesale | $63.3M | $52.1M | +21.5% | | International | $2.2M | $3.1M | -29.0% | - The U.S. Wholesale segment's operating margin expanded significantly to **24.0%** from **18.6%** in the prior year[63](index=63&type=chunk) - The U.S. Retail segment's operating margin contracted sharply to **4.6%** from **8.3%** in the prior year[63](index=63&type=chunk) [Return of Capital](index=3&type=section&id=Return%20of%20Capital%20Activity) Carter's returned **$38.3 million** to shareholders in Q1 2024 through dividends and share repurchases - In Q1 2024, the company returned a total of **$38.3 million** to shareholders[17](index=17&type=chunk) - A cash dividend of **$0.80 per common share** was paid, totaling **$29.3 million**[21](index=21&type=chunk) - The company repurchased and retired approximately **108,000 shares for $9.0 million** at an average price of **$83.48 per share**[55](index=55&type=chunk) - As of April 25, 2024, the total remaining capacity under the Company's share repurchase authorizations was approximately **$631 million**[55](index=55&type=chunk) [Business Outlook](index=3&type=section&id=2024%20Business%20Outlook) Carter's provides Q2 2024 guidance reflecting sales and earnings declines, while affirming an optimistic full-year outlook [Q2 2024 Outlook](index=5&type=section&id=Q2%202024%20Outlook) Q2 2024 outlook projects lower net sales and adjusted diluted EPS due to ongoing inflation and slow spring sales Q2 2024 Guidance | Q2 2024 Outlook | Guidance | Q2 2023 Actual | | :--- | :--- | :--- | | Net Sales | $560M - $570M | $600M | | Adjusted Operating Income | $25M - $30M | $38M | | Adjusted Diluted EPS | $0.35 - $0.45 | $0.64 | - The Q2 forecast assumes continued inflationary pressure on families, a slow start to Spring selling, and conservative inventory commitments by some wholesale customers[57](index=57&type=chunk)[58](index=58&type=chunk) [Full Year 2024 Outlook](index=1&type=section&id=Full%20Year%202024%20Outlook) Full-year 2024 outlook forecasts stable to increased net sales and growth in adjusted operating income and EPS Full Year 2024 Guidance | Full Year 2024 Outlook | Guidance | Fiscal 2023 Actual | | :--- | :--- | :--- | | Net Sales | $2.95B - $3.0B | $2.95B | | Adjusted Operating Income | Comparable to mid-single-digit growth | $328M | | Adjusted Diluted EPS | Low to mid-single-digit growth | $6.19 | - Key assumptions for the full year include an improved macroeconomic environment and consumer demand in the second half, gross margin expansion, and operating cash flow in excess of **$250 million**[25](index=25&type=chunk)[53](index=53&type=chunk)[57](index=57&type=chunk) - Projected capital expenditures for the full year are approximately **$80 million**[31](index=31&type=chunk) [Financial Statements](index=9&type=section&id=Financial%20Statements) This section presents Carter's unaudited condensed consolidated financial statements, including Statements of Operations, Balance Sheets, and Cash Flows [Condensed Consolidated Statements of Operations](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2024 net sales decreased, but gross profit and net income increased due to reduced cost of goods sold Condensed Consolidated Statements of Operations (in thousands) | (In thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net sales | $661,492 | $695,880 | | Gross profit | $315,190 | $309,467 | | Operating income | $55,035 | $56,354 | | Net income | $38,033 | $35,996 | | Diluted net income per common share | $1.04 | $0.95 | [Condensed Consolidated Balance Sheets](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 30, 2024, total assets were **$2.286 billion**, with decreases in cash, inventories, and liabilities Condensed Consolidated Balance Sheets (in thousands) | (In thousands) | March 30, 2024 | Dec 30, 2023 | April 1, 2023 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $267,575 | $351,213 | $157,685 | | Finished goods inventories, net | $473,362 | $537,125 | $613,921 | | Total current assets | $1,016,787 | $1,101,243 | $1,042,718 | | Total assets | $2,285,518 | $2,378,613 | $2,283,327 | | Total liabilities | $1,444,165 | $1,533,363 | $1,485,434 | | Total stockholders' equity | $841,353 | $845,250 | $797,893 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Q1 2024 saw a net cash outflow from operations, primarily due to working capital changes, resulting in an overall cash decrease Condensed Consolidated Statements of Cash Flows (in thousands) | (In thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(25,551) | $42,197 | | Net cash used in investing activities | $(12,017) | $(13,827) | | Net cash used in financing activities | $(45,348) | $(82,762) | | Net decrease in cash and cash equivalents | $(83,638) | $(54,063) | [Non-GAAP Reconciliations](index=2&type=section&id=RECONCILIATION%20OF%20ADJUSTED%20RESULTS%20TO%20GAAP) This section reconciles non-GAAP financial measures to GAAP, including adjusted results, EBITDA, and constant currency net sales [Reconciliation of Adjusted Results to GAAP](index=2&type=section&id=Reconciliation%20of%20Adjusted%20Results%20to%20GAAP) Q1 2024 GAAP results required no adjustments, while Q1 2023 adjustments are detailed for comparison - No adjustments were made to GAAP results in the first quarter of fiscal 2024[10](index=10&type=chunk)[72](index=72&type=chunk) Q1 2023 Reconciliation (in millions) | Q1 2023 Reconciliation (in millions) | As Reported (GAAP) | Adjustments | As Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Operating Income | $56.4 | $1.2 | $57.5 | | Net Income | $36.0 | $0.9 | $36.9 | | Diluted EPS | $0.95 | $0.03 | $0.98 | [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=15&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) Q1 2024 EBITDA and Adjusted EBITDA were **$69.6 million**, with no adjustments, compared to Q1 2023 figures Reconciliation of Net Income to EBITDA and Adjusted EBITDA (in millions) | (In millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income | $38.0 | $36.0 | | EBITDA | $69.6 | $72.4 | | Total Adjustments | $— | $1.2 | | Adjusted EBITDA | $69.6 | $73.5 | [Constant Currency Net Sales Reconciliation](index=16&type=section&id=Constant%20Currency%20Net%20Sales%20Reconciliation) Constant currency net sales reconciliation shows a **5.2%** decline in Q1 2024, slightly higher than the reported **4.9%** Net Sales % Change (Q1'24 vs Q1'23) | Net Sales % Change (Q1'24 vs Q1'23) | Reported % Change | Constant Currency % Change | | :--- | :--- | :--- | | Consolidated Net Sales | (4.9)% | (5.2)% | | International Segment Net Sales | (2.7)% | (4.8)% |

Carter's, Inc. (CRI) is scheduled to release first-quarter 2024 results on Apr 26, before the opening bell. The branded marketer of apparel, exclusively for babies and children in North America, is likely to witness a decline in the top and bottom lines when it reports first-quarter results.The Zacks Consensus Estimate for first-quarter revenues is pegged at $633.1 million, indicating a fall of 9% from the figure reported in the year-ago quarter. The consensus estimate for quarterly earnings, which has rema ...

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