Carter's (CRI) Tops Q4 EPS by 28c, Revenues Beat; Offers Q1 EPS Guidance Below Consensus

Carter's (NYSE: CRI) reported Q4 EPS of $2.84, $0.28 better than the analyst estimate of $2.56. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.07 billion.

• Fourth quarter fiscal 2018 results
  • Net sales $1.1 billion, growth of 6%
  • Diluted EPS $2.83; adjusted diluted EPS $2.84, growth of 22%
• Full year fiscal 2018 results
  • Net sales $3.5 billion, growth of 2%
  • Diluted EPS $6.00; adjusted diluted EPS $6.29, growth of 9%
• Returned $277 million to shareholders through share repurchases and dividends in fiscal 2018
• Board of Directors authorizes 11% increase in quarterly dividend to $0.50 per share
• Full year fiscal 2019 outlook: net sales growth of 1% to 2%; adjusted diluted EPS growth of 4% to 6%

“We saw good demand for our brands in the final months of 2018, with growth driven by our retail and wholesale businesses,” said Michael D. Casey, Chairman and Chief Executive Officer. “In the fourth quarter, our retail sales in the United States grew 7% reflecting, we believe, the strength of our brands and less discretionary nature of young children’s apparel purchases.

“For the year, Carter’s achieved its 30th consecutive year of sales growth, and a record level of profitability enabled by the significant benefits from the Tax Cuts and Jobs Act of 2017.

“We believe Carter’s is well-positioned to achieve good growth in sales and earnings in the years ahead. Carter’s is the market leader in young children’s apparel in North America, and we are extending the reach of our brands throughout the world through eCommerce capabilities and strategic relationships.

“Given our strong balance sheet and cash flow, we plan to continue investing in strategies which we believe will enable us to outperform market trends and deliver attractive returns to shareholders.”

GUIDANCE:

Carter's sees Q1 2019 EPS of $0.65-$0.70, versus the consensus of $1.06.

For earnings history and earnings-related data on Carter's (CRI) click here.

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