- Carter's, Inc. (CRI, Financial) reports a 4.8% drop in net sales for Q1 FY2025, totaling $630 million compared to $661 million in Q1 2024.
- Diluted EPS decreased to $0.43 from $1.04 in Q1 2024; adjusted EPS was $0.66.
- The company suspends forward guidance due to a CEO transition and tariff uncertainties.
Carter’s, Inc. (CRI), a leader in North American infant and young children's apparel, has announced its financial outcomes for the first quarter of fiscal year 2025. The company's net sales declined by 4.8% to $629.8 million from $661.5 million the previous year, as macroeconomic challenges such as inflation and reduced consumer confidence affected demand.
The apparel retailer reported a decrease in operating income to $26.1 million, down 52.6% from $55.0 million in Q1 2024, with an operating margin of 4.1%. Adjusted net income also saw a decline, registering at $23.8 million, or $0.66 per diluted share, compared to $38.0 million, or $1.04 per share, in the same period the previous year.
Amidst these financial results, Carter’s introduced Douglas C. Palladini as its new CEO and President, marking a significant leadership transition. Palladini expressed confidence in the potential of Carter’s brand assets and market distribution to drive future growth. However, guidance for future financial performance has been put on hold due to uncertainties surrounding tariff regulations and the recent leadership changes.
The company returned $29 million to shareholders through dividends during the quarter and did not undertake any share repurchases. Carter’s Board of Directors will continue to assess future capital distribution strategies, factoring in business conditions and financial performance.
