Core Insights - Carter's, Inc. (CRI) is currently trading at a discount compared to its historical and industry benchmarks, with a forward 12-month P/E ratio of 11.15, below its median of 11.49X and significantly lower than the industry average of 26.32X, indicating potential undervaluation and investment opportunity [1] Financial Performance - In the third quarter of fiscal 2024, Carter's reported a 4.2% year-over-year decline in sales, following a 5.9% decline in the previous quarter, impacted by macroeconomic challenges and adverse currency rates that reduced net sales by $3.1 million [10] - The U.S. Retail segment experienced a 5.8% decline in sales, with comparable net sales down 7.1%, while the U.S. Wholesale segment saw a marginal decline of 0.5%, and the International segment reported an 8.6% drop in sales [11] - For the fourth quarter of 2024, Carter's expects net sales to be between $800 million and $840 million, indicating a decline from $858 million in the same quarter last year [11] Growth Strategies - Carter's has implemented a revised pricing strategy to better align with market conditions, which has been positively received by consumers [3] - The company has seen success from its OshKosh back-to-school campaign and its sustainable brands, Little Planet and PurelySoft, which appeal to environmentally conscious consumers [4] - The U.S. Wholesale business achieved an operating margin above 21%, benefiting from leaner inventories and strong demand for exclusive brands, alongside lower product costs and an efficient supply chain [5] Omni-Channel and Digital Strategies - Carter's is leveraging its omni-channel capabilities, with nearly 38% of digital orders fulfilled through stores, up from 35% the previous year, which has helped reduce shipping costs and improve margins [7] - Investments in AI-driven marketing personalization have led to improved conversion rates and mid-single-digit growth in key metrics like units per transaction [8] Market Challenges - The suspension of pandemic-related stimulus payments to child-care centers has negatively impacted families with children, leading to reduced demand for Carter's brands [10] - The company's shares have fallen 19.6% over the past three months, contrasting with a 1% decline in the industry [12]

Core Viewpoint - The event hosted by Habitat for Humanity of Greater Los Angeles celebrated the life and legacy of President Jimmy Carter, highlighting his significant contributions to affordable housing and social justice [1][2][3]. Group 1: Event Highlights - The event featured tributes from key speakers, including Supervisor Janice Hahn, who emphasized President Carter's dedication to social justice and his transformative impact on communities globally [2]. - Jose Tobar, a Habitat homeowner, shared his personal story about the opportunities provided by affordable housing, which was made possible through President Carter's efforts [4]. - Erin Rank, President and CEO of Habitat LA, noted that President Carter's legacy is reflected in the lives of over 4,400 families who benefited from his commitment to affordable housing [5]. Group 2: Memorial Activities - Attendees signed a memorial book for the Carter family and 2x4 wooden beams that will be used in Habitat LA's next development, symbolizing the ongoing impact of President Carter's work [6]. - Guests also signed a commemorative door, representing the many opportunities President Carter helped create for families worldwide [6]. Group 3: Future Initiatives - Habitat LA plans to continue honoring President Carter's legacy by building homes, communities, and hope across greater Los Angeles [7].

Core Points - The article discusses the funeral events for former US President Jimmy Carter, who passed away at the age of 100 on December 29, 2023, in Plains, Georgia, surrounded by family [1][2][10] - A motorcade carrying his flag-draped coffin began from the Phoebe Sumter Medical Centre, with former Secret Service agents serving as pallbearers [1][3] - The funeral procession included family members and was marked by tributes from the public, including flowers and commemorative pins [5][6] Summary by Sections Funeral Events - Six days of funeral events are being held for Jimmy Carter, with a motorcade traveling through Plains and past his childhood home [1][2] - The National Park Service rang a bell 39 times to honor his presidency [4] Public Tributes - Members of the public lined the procession route, expressing their respect and admiration for Carter's contributions [5] - Notable figures, including former presidents and current leaders, paid tribute to Carter's legacy and humanitarian efforts [14][15] Final Arrangements - After the procession, Carter's body will be taken to Atlanta for a moment of silence and a ceremony at the Carter Presidential Centre, before lying in state at the US Capitol [6] - His state funeral is scheduled for Thursday at Washington National Cathedral, followed by a private funeral in Plains [6][7]

Growth Drivers - The company has capitalized on its pricing strategy, efficient inventory management, and enhanced product offerings, positioning itself as a value-driven option for budget-conscious consumers, especially during inflationary times [1] - Investments in pricing and marketing of nearly $60 million for the second half of 2024 highlight its commitment to driving demand and market relevance [2] - The company's focus on competitively priced essential core products, with an average retail price of around $11, strengthens its value proposition and maintains a competitive edge [3] - The U S Wholesale business has been a key contributor to growth, with an operating margin exceeding 21% in Q3 2024, supported by leaner inventories and reduced product costs [4] - The company anticipates U S Wholesale sales to grow in the mid-to-high single digits year over year for Q4 2024, with full-year sales expected to surpass $1 billion, reflecting a low single-digit increase [5] Omni-Channel and Digital Strategy - The company has leveraged its omni-channel capabilities, with nearly 38% of digital orders fulfilled through stores in Q3 2024, up from 35% last year, enhancing operational efficiency [6] - Investments in advanced marketing personalization technology powered by AI have improved performance metrics, with higher conversion rates and increased units per transaction year over year [7] - E-commerce has seen mid-single-digit growth in key metrics, driven by these digital initiatives [7] Retail Footprint Optimization - The company opened 40 high-margin outlets and closed around 30 low-margin stores in declining traffic areas, strengthening its retail footprint [6] Challenges and Risks - The company faces challenges due to inflationary pressures, high interest rates, and the cessation of pandemic-related stimulus payments, which have reduced demand for its products [9] - Q3 2024 sales dropped by 4 2% year over year, following a 5 9% decline in the prior quarter [9] - Adverse currency fluctuations reduced net sales by $3 1 million in Q3 2024 [10] - The U S Retail segment reported a 5 8% decline in sales, with comparable net sales down 7 1%, while the U S Wholesale segment saw a marginal 0 5% decline, and the International segment experienced an 8 6% drop [10] - For Q4 2024, the company expects net sales of $800-$840 million, indicating a decline from $858 million in the year-ago quarter [11] - Full-year 2024 net sales are expected to be $2 79-$2 83 billion, compared to $2 95 billion in 2023 [12] Stock Performance - The company's shares have lost 19 7% in the past three months, compared to the industry's decline of 7 8% [12]

Group 1 - The stock of Carter's, Inc. (CRI) is experiencing significant attention due to high implied volatility in the options market, particularly for the Dec 20, 2024 $45.00 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Carter's stock price, potentially due to an upcoming event [2] - Currently, Carter's holds a Zacks Rank of 3 (Hold) in the Shoes and Retail Apparel industry, which is in the top 12% of the Zacks Industry Rank, but analysts have not increased earnings estimates for the current quarter, leading to a decrease in the Zacks Consensus Estimate from $1.90 to $1.72 per share [3] Group 2 - The high implied volatility surrounding Carter's stock may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to benefit from time decay [4] - The strategy of selling premium is commonly employed by seasoned traders, who hope that the underlying stock will not move as much as initially expected by expiration [4]

Carter's, Inc. (CRI) has faced a challenging period in 2024, with its shares dropping 21.5% over the past month. This decline contrasts with the broader performance of the Zacks Shoes and Retail Apparel industry, which saw a moderate decrease of 3.7%. The company's dismal performance is due to the curtailed consumer discretionary spending, owing to rising inflation and higher interest rates.Image Source: Zacks Investment ResearchCarter’s current stock price of $52.84 reflects a 40% discount from its 52-week ...

Normally, we would expect to see a boost in stock price after such a large earnings beat, but the reality is that the details play a much more important role than what we see in the Seeking **Effective 8/20/2023 the in-depth retirement article series for John & Jane will be available in video format on YouTube. Please consider watching, commenting, and subscribing as I expand on my analysis. I am trying to keep the videos about 30 minutes or less but hope they will be even more interesting for those who hav ...

Carter's, Inc. (NYSE: CRI ) presented Q3 2024 results last week, with sales falling 4%, arresting what seemed like a looming crisis with comparable sales falling double digits in July 2024. The price paid for that recovery was Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the co ...

Carter's, Inc. (CRI) announced its third-quarter 2024 results, wherein the top and the bottom line beat the Zacks Consensus Estimate, while both decreased from the year-ago period's actuals. The top line remained soft on weak sales across the U.S. Retail, International and U.S. Wholesale segments. Also, the impacts of inflation, which led to reduced spending and currency headwinds, hurt the performance. Carter's adjusted earnings per share (EPS) of $1.64 surpassed the Zacks Consensus Estimate of $1.29. Howe ...

Financial Data and Key Metrics - Q3 2024 net sales were $758 million, down 4% YoY, with U.S. retail sales declining 6% and international sales down 9% [22][28] - Operating income was $77 million, with an operating margin of 10.2%, down from 13% YoY [22][30] - Adjusted EPS was $1.64, down 11% YoY, driven by lower sales and higher marketing investments [22][26] - Inventory levels improved, with a 2% decline YoY, and the company ended the quarter with over $1 billion in liquidity [34] - Full-year sales guidance is reaffirmed at $2.785 billion to $2.825 billion, with U.S. retail sales expected to decline 8% [46] Business Segment Performance - U.S. retail sales declined 6%, with eCommerce comps improving from -14% in H1 to -5% in Q3 [28][29] - U.S. wholesale sales were flat YoY, with strong growth in exclusive brands offsetting declines in department store and off-price sales [31] - International sales declined 9%, with Canada seeing a high single-digit decrease due to warmer weather and economic pressures, while Mexico grew 9% [32] - Baby apparel sales grew 2% YoY, contributing over 50% of total apparel sales, while toddler sales were slightly lower [5] Market and Competitive Trends - The company observed a "barbell-shaped" trend in U.S. retail sales, with strong growth in opening price point and premium products, but a 10% decline in mid-tier offerings [6] - Competitive pricing strategies, including $40 million in price reductions and $10 million in marketing, helped improve U.S. retail trends, with comps improving from -13% in July to -5% in August and September [7][8] - The company gained market share in baby and toddler apparel, which represents over 80% of its business [72] Strategic Initiatives and Outlook - The company is shifting its product assortment to increase penetration of opening price point and premium products by 10 points each, while reducing mid-tier offerings [38][39] - Investments in technology, including AI-driven marketing personalization and a new inventory allocation system, are expected to improve customer acquisition and retention [14][44] - The company plans to open 40 high-margin stores and close 30 low-margin stores in 2024, with 98% of stores cash flow positive over the past 12 months [13] - Full-year adjusted operating income is expected to be $240 million to $260 million, with adjusted EPS raised to $4.70 to $5.15 due to a lower tax rate and reduced interest expenses [46] Management Commentary on Market Conditions - Management noted that inflation and higher interest rates continue to weigh on demand from families with young children, particularly in the U.S. and Canada [28][32] - The company believes its value proposition, with average retail price points under $11, positions it well in an inflationary environment [19] - Weather trends, particularly cooler temperatures, have improved holiday-related apparel sales in recent weeks [6][81] Q&A Session Highlights Question: Gross Margin Pressure and Pricing Strategy - Gross margin declined 60 bps in Q3, with a 170 bps impact from pricing investments, and is expected to decline 200 bps in Q4 due to mix shifts and continued pricing actions [50][51] - The company focused on reducing prior season inventory in Q3, with prices on prior season goods down 10%, while in-season goods saw only a 3% price reduction [52] Question: U.S. Retail Trends and ROI of Pricing Investments - U.S. retail comps improved from -13% in July to -5% in August and September, with October comps running down less than 5% [47][54] - The ROI of pricing investments is measured through unit volume growth, transaction increases, and improved conversion rates [55][58] Question: Wholesale Business and Spring/Summer 2025 Orders - Wholesale demand for spring/summer 2025 is showing modest growth, with exclusive brands expected to outperform non-exclusive partners [62] - Off-price sales are forecasted to decline nearly 50% in 2024, with low single-digit growth expected in U.S. wholesale sales excluding off-price [16] Question: Share Repurchase Pause and Capital Allocation - The company has paused share repurchases due to a reduction in free cash flow forecasts, with plans to revisit capital allocation in 2025 [70][71] Question: Assortment Shift and Gross Margin Impact - The shift towards opening price point and premium products is not expected to significantly impact gross margins, as the mid-tier segment has been underperforming [77][78] Question: Weather Impact and Inventory Management - Warmer weather in late Q3 slowed sales, but the company made significant progress in clearing spring and summer inventory, improving the inventory position heading into Q4 [80][81] Question: Tariff Risks and Sourcing Strategy - Less than 5% of the company's finished goods are sourced from China, with diversification into countries like Vietnam, Cambodia, and India reducing exposure to potential tariffs [82]