Carter's Q1 sales up 20.3 percent, earnings improve

For the first quarter, Carter’s, Inc. net sales increased 132.9 million dollars or 20.3 percent to 787.4 million dollars, reflecting strong growth in all business segments. The company’s U.S. retail, U.S. wholesale and international segments grew 27 percent, 12 percent and 19 percent, respectively. Consolidated net sales in fiscal March increased 59 percent compared to the prior year period.

“Our first quarter sales and earnings meaningfully exceeded our expectations, with growth in each of our retail, wholesale, and international business segments,” said Michael D. Casey, the company’s chairman and chief executive officer, adding, “Given our strong start to the year, we have raised our sales and earnings forecasts for 2021.”

Highlights of Carter’s Q1 performance

The company said, operating income for the quarter increased 206 million dollars to 127.5 million dollars, compared to an operating loss of 78.5 million dollars in the first quarter of fiscal 2020. Operating margin improved to 16.2 percent, compared to negative 12 percent in the prior year period.

Adjusted operating income increased 154.9 million dollars to 128.5 million dollars, compared to an adjusted operating loss of 26.3 million dollars in the first quarter of fiscal 2020. Adjusted operating margin increased to 16.3 percent, compared to negative 4 percent in the prior year period.

Net income increased 164.9 million dollars to 86.2 million dollars or 1.96 dollars per diluted share, compared to a net loss of 78.7 million dollars or 1.82 dollars per diluted share, in the first quarter of fiscal 2020.

Adjusted net income increased 121.7 million dollars to 87 million dollars compared to a net loss of 34.8 million dollars in the first quarter of fiscal 2020. Adjusted earnings per diluted share improved to 1.98 dollars compared to an adjusted loss per diluted share of 81 cents in the first quarter of fiscal 2020.

Carter’s expects FY2021 to increase by 10 percent

For fiscal 2021, the company projects net sales will increase approximately 10 percent and adjusted diluted earnings per share will increase approximately 40 percent compared to adjusted diluted earnings per share of 4.16 dollars in fiscal 2020.

For the second quarter of fiscal 2021, the company projects net sales will increase approximately 35 percent, adjusted operating income will increase approximately 35 percent compared to adjusted operating income of 41.1 million dollars in the second quarter of fiscal 2020 and adjusted diluted earnings per share will increase approximately 25 percent compared to adjusted diluted earnings per share of 54 cents in the second quarter of fiscal 2020.