Carter's records drop in Q4 sales and earnings

Carter’s, Inc. fourth quarter consolidated net sales decreased 110.6 million dollars or 10.1 percent to 989.9 million dollars, while full year consolidated net sales decreased 495 million dollars or 14.1 percent to 3 billion dollars. The company said, sales declined in all segments principally due to disruptions related to the Covid-19 pandemic. U.S. Retail segment comparable sales declined 9 percent, reflecting a decline in store sales, partially offset by ecommerce growth of 16 percent. Full year, comparable ecommerce sales in the U.S. and Canada increased 30 percent and 71 percent, respectively. “Despite the ongoing pandemic-related challenges, we achieved our sales and earnings objectives in the fourth quarter,” said Michael D. Casey, Chairman and Chief Executive Officer of the company, adding, “The strength and growth of our ecommerce capabilities and exclusive brands sold through Amazon, Target and Walmart helped to mitigate the impact of lower traffic to our stores and demand from international customers.” Review of Carter’s Q4 and full year results The company’s operating income decreased 28.9 million dollars or 17.8 percent to 133.9 million dollars, while operating margin decreased 130 basis points to 13.5 percent and adjusted operating income decreased 16.8 million dollars or 10.3 percent to 145.5 million dollars and adjusted operating margin was comparable at 14.7 percent. Net income decreased 26.1 million dollars or 20.9 percent to 99 million dollars or 2.26 dollars per diluted share, while adjusted net income decreased 16.9 million dollars or 13.5 percent to 107.9 million dollars and adjusted earnings per diluted share decreased 12.5 percent to 2.46 dollars. Operating income in fiscal 2020 was 189.9 million dollars compared to 371.9 million dollars in fiscal 2019, and adjusted operating income was 279.8 million dollars compared to 401 million dollars in fiscal 2019. Net income for the year was 109.7 million dollars or 2.50 dollars per diluted share compared to 263.8 million dollars or 5.85 dollars per diluted share in fiscal 2019. Adjusted net income was 182.6 million dollars compared to 291.7 million dollars in fiscal 2019, while adjusted earnings per diluted share were 4.16 dollars compared to 6.46 dollars in fiscal 2019. Carter’s expects to growth in sales and earnings for FY21 For fiscal 2021, the company projects net sales will increase approximately 5 percent and adjusted diluted earnings per share will increase approximately 10 percent compared to adjusted diluted earnings per share of 4.16 dollars in fiscal 2020. For the first quarter of fiscal 2021, the company projects net sales will be comparable to the first quarter of fiscal 2020 and adjusted diluted earnings per share will be approximately 25 cents compared to adjusted diluted loss per share of 81 cents in the first quarter of fiscal 2020. Image:Osh Kosh B’gosh,Facebook
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