Carter's Earnings Report Boosts Shares

Investing.com — Shares of Carter's (NYSE:CRI) rose around 1.3% premarket Friday after the company reported its latest quarterly earnings, surpassing both earnings and revenue expectations.

The company posted Q3 earnings per share of $1.84, $0.47 higher than the analyst estimate of $1.37, while revenue for the quarter reached $758 million, exceeding the consensus estimate of $751.9 million.

> "Our U.S. Retail sales were better than planned and driven by the strength of our product offerings and effectiveness of our pricing and brand marketing strategies," said Michael Casey, Chairman and CEO.

Carter's reported that third-quarter U.S. Wholesale sales met expectations; however, sales to department stores and off-price retailers declined compared to last year.

Casey acknowledged the ongoing inflationary cycle but noted that CRI is benefiting from consumers opting for the convenience of one-stop shopping at retailers such as Target, Walmart (NYSE:WMT), and Amazon (NASDAQ:AMZN).

> "Carter's has an unparalleled competitive advantage as the largest supplier of young children's apparel to these retailers," Casey added.

Looking forward, Carter's indicated that with the robustness of its high-margin business model and cash flow generation, it has the capacity to invest in growth strategies. The company expects this approach will position it favorably for future growth when market conditions improve.

For Q4, Carter's anticipates EPS between $1.32 and $1.72, below the consensus estimate of $1.86. Revenue expectations range between $800 and $840 million, compared to the consensus of $825.5 million.

For the full year, CRI expects net sales between $2.785 billion and $2.825 billion.