Children's wear retailer Carter's issues cautious 2025 outlook

While children’s wear retailer Carter’s fourth quarter net sales of 860 million dollars and adjusted diluted EPS of 2.39 dollars beat analysts’ expectations, the company’s 2025 outlook disappointed them.

Specifically, the company’s projected earnings per share between 3.20 dollars and 3.80 dollars and 2025 revenue range of 2.78 billion dollars to 2.855 billion dollars, trailing prevailing market expectations.

Interim CEO and CFO Richard F. Westenberger attributed the subdued outlook to persistent challenges impacting profitability throughout 2025, citing factors such as lingering lower pricing in the first half, elevated product costs, and the reinstatement of standard variable compensation structures.

"In 2025, our strategy will shift, emphasizing enhanced merchandise assortments and a robust inventory posture, particularly in the critical second half, rather than relying heavily on pricing adjustments," Westenberger explained.

Notably, the company's fourth quarter US wholesale net sales saw a 7.3 percent increase, while US retail and international net sales experienced declines.

Carter's declared a quarterly dividend of 0.80 dollars per share.