Carter’s(CRI) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter fiscal 2024 net sales were $860 million, a slight increase of 0.2$858 million in Q4 2023[2]. - Fiscal year 2024 net sales totaled $2.844 billion, a decline of 3.4$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$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$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$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$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$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$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$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].