US brand Carter's posts net income of $379.2 mn in FY22

Carter’s US retail net sales declined by 11.5 per cent. US wholesale and international net sales also experienced declines of 4.1 per cent and 1.9 per cent, respectively. The company attributes the decline in sales to the impact of inflation on demand from consumers and wholesale customers, Carter’s said in a press release.

The company's net income for FY22 decreased by $89.7 million, or 26.4 per cent, to $250 million, compared to $339.7 million in the previous fiscal. Diluted earnings per share decreased by 18.8 per cent to $6.34.

In the fourth quarter (Q4) of FY22, the company reported a consolidated net sales decrease of $150 million, or 14.1 per cent, to $912.1 million, with declines in the US retail, US wholesale, and international segments of 12.7 per cent, 17.8 per cent, and 12 per cent, respectively. US retail comparable net sales declined by 12.9 per cent.

Income from operations for Q4 FY22 was $13.6 million, or 9.8 per cent of net sales, compared to $18.2 million or 10.7 per cent of net sales for the same period a year ago.

The company's adjusted operating margin in Q4 FY22 remained comparable to the prior year at 13 per cent, and adjusted diluted earnings per share decreased by 0.9 per cent year-on-year (YoY) to $2.29 in the fourth quarter of FY22.

For FY23, the company expects to generate $3 billion in net sales. It anticipates adjusted operating income of $350 million, a decrease from $388.2 million in FY22. Adjusted diluted earnings per share are forecast to be $6.15, compared to $6.90 in FY22. Carter's also expects operating cash flow to exceed $300 million.

Fibre2Fashion News Desk (DP)