ATLANTA - Carter's, Inc. (NYSE:CRI), a leading retailer of children's apparel, reported a fourth-quarter earnings beat that saw its shares rise by 3.04%, despite a revenue shortfall and weaker-than-expected guidance for the first quarter of 2024.
The company posted adjusted earnings per share (EPS) of $2.76, surpassing analyst predictions by $0.13. However, revenue for the quarter fell short at $858 million, missing the consensus estimate of $869.66 million.
For the first quarter of 2024, Carter's anticipates adjusted EPS to be between $0.60 and $0.70, which is notably below the analyst consensus of $1.05. Revenue forecasts for the same period range from $620 million to $645 million, also falling short of the expected $694.3 million. The company's full-year 2024 revenue projection stands at approximately $3 billion, in line with the consensus estimate of $2.995 billion, with expectations for mid single-digit growth in adjusted diluted EPS from the $6.19 reported in fiscal 2023.
The company's Chairman and Chief Executive Officer, Michael D. Casey, commented on the results, highlighting an improving trend in brand demand towards the end of 2023. "Sales improved sequentially each month in the fourth quarter and drove higher than expected earnings," said Casey. He attributed the strong performance to product innovation, inventory management, pricing discipline, and robust cash flow, which resulted in over 20% growth in EPS for the quarter and over $500 million of operating cash flow for the year.
Despite the positive earnings, the revenue miss and cautious outlook for the upcoming quarter reflect the challenges faced by Carter's. The company noted sluggish traffic to its U.S. Retail and International segments earlier in the quarter, impacted by warmer weather and its effect on demand for fall and winter products. Additionally, the lingering effects of inflation have continued to weigh on families with young children, influencing sales and earnings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.