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 60millionforthesecondhalfof2024highlightitscommitmenttodrivingdemandandmarketrelevance[2]−Thecompany′sfocusoncompetitivelypricedessentialcoreproducts,withanaverageretailpriceofaround11, 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 1billion,reflectingalowsingle−digitincrease[5]Omni−ChannelandDigitalStrategy−Thecompanyhasleverageditsomni−channelcapabilities,withnearly383 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 858millionintheyear−agoquarter[11]−Full−year2024netsalesareexpectedtobe2 79-283billion,comparedto2 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]
Carter’s(CRI) ZACKS·2024-12-19 20:06