Carter’s, Inc. Unveils Financial Performance for Q4 and Fiscal Year 2023

Carter’s, Inc. (NYSE:CRI), the leading branded marketer of children’s apparel in North America, released its financial results for the fourth quarter and fiscal year 2023.

Michael D. Casey, Chairman and CEO, noted positive developments in brand demand towards the end of 2023, contributing to higher-than-expected earnings. Sequential monthly sales improvement in the fourth quarter, exceeding projections, was attributed to the company’s focus on product innovation, efficient inventory management, pricing discipline, and robust cash flow. Earnings per share grew by over 20% in Q4, generating more than $500 million in operating cash flow for the year.

In the same period, the U.S. Wholesale business experienced greater-than-anticipated demand due to improved replenishment trends and timely deliveries. However, U.S. Retail and International segments saw lower sales, primarily due to reduced traffic attributed to warmer weather impacting fall and winter product demand.

The year’s overall sales and earnings were influenced by lingering inflation effects on families with young children. A correlation between improved consumer sentiment and sales trend late in the year continued into early 2024. With expectations of moderated inflation, growing real wages, and low unemployment, the company anticipates improved market conditions in the coming year.

Carter’s, a market leader with extensive distribution capabilities, maintains strong relationships with major retailers, operating across 20,000 points of sale worldwide. Despite market disruptions from the global pandemic and historic inflation, the company’s focus on high-margin sales, product enhancement, store closures, inventory efficiency, and improved pricing has positioned it for growth in 2024.

Entering the new year with enhanced inventory levels, the company anticipates growth in U.S. Retail and U.S. Wholesale segments. International demand is expected to be comparable, with disruptions in the Middle East and Europe affecting sales, and inflation impacting Canadian consumers.

Carter’s, confident in its best-in-class position, has demonstrated resilience through market volatility, and the company is well-prepared to capitalize on market recovery in the years ahead.

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