Carter’s net income fell as US retail and international sales declined last year.
The apparel company’s net income plunged 20.2 per cent to $185.5 million while net sales dipped 3.4 per cent to $2.84 billion.
US retail sales fell 5.6 per cent to $1.42 billion but US wholesale sales increased 0.7 per cent to $1.02 billion. International sales decreased 5.5 per cent to $405.6 million.
In the fourth quarter, the group’s net income slid 42.2 per cent to $61.5 million while net sales rose 0.2 per cent to $859.7 million.
“Our profitability reflected planned investments in pricing, marketing and stores which contributed to a mid-single-digit increase in comparable retail sales over the key Black Friday selling period as well as improved customer acquisition and retention,” said Richard F Westenberger, interim CEO, senior EVP, CFO and COO of Carter’s.
For the current year, the company forecasts net sales of $2.78 billion to $2.86 billion.
This reflects an expected comparable to a mid-single-digit decline in US retail sales, low single-digit growth to a low single-digit decline in US wholesale sales, and low single-digit growth to comparable international sales.
“Several factors are expected to weigh on our profitability in 2025, including some residual lower pricing in the first half of the year, higher product costs and the restoration of more normalized variable compensation provisions,” said Westenberger.
“In 2025, we intend to rely less on pricing action and lean more into planned improvements in our merchandise assortments and a stronger overall inventory position, particularly in the more significant second half of the year.”
Earlier this year, Carter announced the retirement of Michael D Casey as chairman and CEO after his more than 30-year career with the brand.
