Carter’s posts net sales of $791.7 million, down 3%, in Q3
Carter’s, a leading branded marketer in North America of apparel exclusively for babies and young children, has reported a decrease in net sales by 3.3 per cent, amounting to $791.7 million in the third quarter of fiscal 2023, down from $818.6 million in Q3 FY22.
The company’s US retail
Despite the drop in sales, operating income increased 2 per cent to $93.4 million, up from $91.6 million in Q3 FY22. The operating margin also improved to 11.8 per cent, compared to 11.2 per cent in the same period last year. Adjusted operating income, a non-GAAP measure, increased by 5.2 per cent to $96.3 million, and the adjusted operating margin rose to 12.2 per cent.
Net income for Q3 FY23 was $66.1 million, or $1.78 per diluted share, a slight increase from $65 million, or $1.67 per diluted share, in Q3 FY22. Adjusted net income was $68.4 million, compared to $65.0 million in the same quarter last year, with adjusted earnings per diluted share rising to $1.84 from $1.67, the company said in a press release.
For the first three quarters of fiscal 2023, net sales decreased by 9.3 per cent to $2.09 billion, compared to $2.30 billion in the same period last year. Operating income plummeted by 30.5 per cent to $187.3 million, with an operating margin of 9 per cent, down from 11.7 per cent. Adjusted operating income saw a decrease of 28.9 per cent to $191.8 million, with an adjusted operating margin of 9.2 per cent.
Net income for the first three quarters was $126 million, or $3.36 per diluted share, a drop from $169.9 million, or $4.26 per diluted share, in the same period in 2022. Adjusted net income was $129.4 million, compared to $185 million in the first three quarters of fiscal 2022, with adjusted earnings per diluted share falling to $3.45 from $4.64.
“We achieved our sales and earnings objectives in the third quarter,” said Michael D Casey, chairman and chief executive officer.
“In our US wholesale segment, demand for our fall and holiday product offerings was higher than planned. Our wholesale customers entered this year leaner on inventories, and they planned consumer demand cautiously for 2023. For the fourth consecutive quarter, we saw higher than planned wholesale demand for our brands which provides fresh product offerings for consumers and better sell-throughs for our wholesale customers.”