- Carter's Inc (NYSE:CRI) reported a first-quarter FY22 sales decline of 0.8% to $781.3 million, beating the consensus of $751.21 million.
- Net sales from U.S. Retail segment fell 10% to $366.4 million, U.S. Wholesale improved 8.4% to $307.3 million, and the International segment surged 11% to $107.6 million.
- The gross margin contracted 438 basis points to 45.4% of net sales.
- Selling, general and administrative expenses fell 4.4% Y/Y to $259.8 million.
- The operating margin was 13.1%, and operating income for the quarter declined 19.5% to $102.6 million.
- The company held $702.3 million in cash and equivalents as of April 2, 2022.
- Adjusted EPS of $1.66 beat the analyst consensus of $1.39.
- Outlook: Carter's sees Q2 sales of $750 million - $775 million, against the consensus of $800.9 million.
- It expects an adjusted EPS of $1.60 - $1.80, versus the consensus of $1.81.
- Carter's reaffirmed its FY22 sales growth outlook of 2% - 3% and adjusted EPS increase of 12% - 14%.
- Price Action: CRI shares are trading lower by 3.46% at $85.62 on the last check Friday.
