The earnings call presented a mixed outlook, with positive trends in U.S. retail and the baby category offset by overall sales declines and tariff-related uncertainties. Cost management was strong, but the suspension of forward guidance underlines the challenges ahead.
Company Guidance
During Carter's First Quarter Fiscal 2025 Earnings Call, the company announced the suspension of forward-looking guidance due to uncertainties surrounding tariff impacts and the new leadership transition. First quarter net sales were $630 million, a 5% decline from the previous year, while adjusted operating income was $35 million with an adjusted operating margin of 5.6% and adjusted EPS of $0.66. U.S. retail sales declined by 4% with a 5% drop in comp sales, although there was a 4% comp increase in the baby category. U.S. wholesale and international segments also saw a 5% sales decline. The company noted a gross margin of 46.2%, a decrease of 140 basis points from the prior year, influenced by pricing investments and adverse FX impacts. Carter's reported $300 million in cash on hand and over $1 billion in total liquidity. Despite these challenges, leadership expressed optimism about the company's long-term prospects and commitment to returning to accretive growth.
Positive U.S. Retail Momentum
Sales and earnings in U.S. retail met the company's plan for the quarter, with April month-to-date comps up about 13% and March-April combined period comps up about 4%.
Strong Baby Category Performance
The baby category achieved a plus 4% comp in the first quarter, showing continued momentum in the market.
Effective Cost Management
SG&A expenses were well controlled, down 2% from last year, with cost reductions in several areas offsetting new store and retail technology investments.
Solid Balance Sheet
Total liquidity at quarter end was over $1 billion with over $300 million of cash on hand.
Carter's (CRI) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CRI Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Apr 25, 2025
$38.23
$33.87
-11.40%
Feb 25, 2025
$51.06
$42.83
-16.12%
Oct 25, 2024
$63.47
$55.02
-13.31%
Jul 26, 2024
$57.11
$54.68
-4.25%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Carter's Inc (CRI) report earnings?
Carter's Inc (CRI) is schdueled to report earning on Jul 25, 2025, TBA Not Confirmed.
What is Carter's Inc (CRI) earnings time?
Carter's Inc (CRI) earnings time is at Jul 25, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.