Overview
Carter's Q3 net sales were flat yr/yr at $758 mln
Adjusted EPS for Q3 beats analyst expectations
Company to cut 300 office-based positions, close 150 stores, cut $10 mln annual spending across categories
CEO and Board of Directors to reduce their 2026 compensation
Outlook
Carter's to close 150 stores over the next three years vs 100 stores planned earlier
Company expects $35 mln annual savings from restructuring starting 2026
Carter's suspends fiscal 2025 guidance due to tariff uncertainty
Result Drivers
U.S. RETAIL DEMAND - Improved demand in U.S. Retail business with positive comparable sales and better pricing
HIGHER COSTS - Elevated product costs and additional investments weighed on profitability
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | $758 mln | ||
Q3 Adjusted EPS | Beat | $0.74 | $0.73 (5 Analysts) |
Q3 EPS | $0.32 | ||
Q3 Adjusted Net Income | Beat | $26.8 mln | $24.2 mln (4 Analysts) |
Q3 Net Income | $11.6 mln | ||
Q3 Adjusted Operating Income | Beat | $39.4 mln | $38.5 mln (4 Analysts) |
Q3 Adjusted Operating Margin | 5.20% | ||
Q3 Operating Income | $29.1 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy."
Wall Street's median 12-month price target for Carter's Inc is $25.00, about 29.4% below its October 24 closing price of $32.35
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nBw9cCjtza
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)