Carter’s Inc


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Carter’s Inc: Initiation Of Coverage – These Are The 3 Biggest Challenges In Its Path!


Carter’s, Inc. finished its fiscal year 2023 on a strong note with a sequential increase in their Q4 comparable U.S. retail sales. The demand for their new spring product offerings was earlier than planned leading to better than expected earnings and cash flow in the quarter. Earnings per share were up over 20% with margin expansion in each of their three business segments. Fourth quarter profitability was driven by strength in product offerings, timely deliveries from Asia, improved price realization, declining product costs, and careful control over discretionary costs. The company’s success in reducing inventory stockpiles, which had accumulated in 2022 during a surge in inflation and a slowdown in consumer demand, helped to improve the inventory situation. They managed to efficiently sell off significantly all of the pack & hold inventory worth $100 million carried on from 2022. This cost-effective strategy led to a 28% reduction in inventory by year-end.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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