Children’s apparel marketer Carter’s has reported lower annual net income as macroeconomic pressures negatively impacted consumer spending.

The company behind the Carter’s and OshKosh B’gosh brands saw a net income of $232.5 million, down 7 per cent and net sales of $2.9 billion, down 8.3 per cent.

US retail sales fell 10.6 per cent to $1.5 billion while US wholesale sales decreased 6.1 per cent to $1 billion. International sales slid 5.1 per cent to $429.2 million.

“For the year, our sales and earnings continued to reflect the lingering effects of inflation weighing on families with young children,” said Carter’s chairman and CEO Michael D. Casey.

“We saw a noteworthy correlation between the improved consumer sentiment late in the year and the trend in our sales. That favorable trend in sales continued into the early weeks of 2024. With the continued moderation in inflation, growth in real wages, and low unemployment, we believe market conditions may improve in the year ahead.”

For the current year, the company forecasts low single-digit growth in net sales to about $3 billion.