Carter’s reports Q3 EPS $1.84, consensus $1.54

Reports Q3 revenue $792M, consensus $786.35M. “We achieved our sales and earnings objectives in Q3,” said Michael Casey, CEO. “Warmer weather continued to weigh on the demand for our brands in the early weeks of the fourth quarter. Where weather is cooler, sales trends have improved. With colder weather on the way, we expect sales trends will improve in the weeks ahead.,,Our progress reducing inventories has significantly improved our free cash flow this year and supported the continued return of excess capital to our shareholders…Our second half forecasts this year reflect a meaningful improvement in the trend in our sales and earnings relative to last year and the first half of this year…Inflation, generational high interest rates, and the suspension of pandemic-related stimulus payments to child-care centers have weighed on families with young children and their demand for our brands. Thankfully, birth trends in the United States have stabilized after a 14-year decline that began with the Great Recession. With a near 40-year high in weddings last year, continued strength in the labor market, and moderation in inflation, we believe market conditions will improve…”