Carter’s(US:CRI)2026-01-12 17:30Financial Data and Key Metrics Changes - The company has experienced three consecutive quarters of comparable store growth, indicating a positive trend in sales performance [11][41] - The average unit retail (AUR) has increased, with the company successfully maintaining higher prices without a degradation in unit sales, which is a significant achievement [12][13] Business Line Data and Key Metrics Changes - The direct-to-consumer (DTC) business showed strong performance, with significant growth across all channels including wholesale and international [11] - The company has identified approximately 150 stores for closure, focusing on those with lower margins, which is expected to streamline operations and improve profitability [23][27] Market Data and Key Metrics Changes - The company has diversified its market approach, successfully attracting new consumers from higher household income brackets who are more open to premium pricing [14][15] - The wholesale business remains robust, with a focus on growing relationships with key accounts, particularly in the mass retail channel [34][39] Company Strategy and Development Direction - The company aims to invest in product design and demand creation to resonate with today's young consumers, particularly Gen Z parents [6][8] - There is a strategic focus on enhancing brand identity for each of its brands, allowing them to develop independently rather than applying a one-size-fits-all approach [43] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need for long-term, sustainable growth rather than growth driven by discounts or one-time events, emphasizing the importance of maintaining brand equity [42] - The company is optimistic about future growth, with expectations set for sales and earnings growth in 2026, supported by recent positive performance trends [40][41] Other Important Information - The company is transitioning its Amazon business from a private label to branded products, which is expected to enhance visibility and sales [36][38] - The supply chain team has successfully diversified sourcing to mitigate costs associated with tariffs, contributing to overall cost savings [20][21] Q&A Session Summary Question: What are the biggest challenges faced by the company? - The company needs to invest in product design and demand creation to align with consumer expectations and preferences [6] Question: How does the company plan to approach reinvestment? - The company plans to gradually increase marketing investments while ensuring a good return on investment [8] Question: Can you elaborate on the pricing strategy? - The company aims to maintain a competitive pricing strategy while ensuring that quality and style remain integral to its value proposition [17][18] Question: What is the plan for store closures? - The company has identified 150 stores for closure, focusing on those that are marginally profitable, with a plan to transfer some revenue to other locations [23][27] Question: How does e-commerce fit into the overall strategy? - E-commerce currently accounts for about a third of U.S. retail revenue, and the company aims to enhance its omnichannel capabilities to meet consumer expectations [31][32]