Fri, Apr 25, 4:10 PM (27 days ago)
**Carter's, Inc. (CRI) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $629.8 million, down 4.8% YoY due to decreased demand across channels. - **Profit Margins:** Gross margin decreased to 46.2% from 47.6% YoY. Operating margin fell to 4.1% from 8.3% YoY. - **Net Income:** $15.5 million, down 59.1% YoY. - **EPS:** Basic and diluted EPS both at $0.43, down 58.7% YoY. - **Cash Flow:** Net cash used in operating activities was $48.6 million, up from $25.6 million YoY. **Segment Performance:** - **U.S. Retail:** Net sales down 4.3% YoY, operating income down 83.9% YoY. - **U.S. Wholesale:** Net sales down 5.3% YoY, operating income down 12.7% YoY. - **International:** Net sales down 4.9% YoY, operating loss of $0.2 million compared to income of $2.2 million YoY. **Trends & Uncertainties:** - **Macroeconomic Factors:** Inflation, interest rates, and geopolitical uncertainty impact consumer demand. - **Trade Policy:** New tariffs and trade restrictions could affect supply chain and costs. - **Leadership Transition:** New CEO appointed, with ongoing operating model improvements. **Future Operations Impact:** - **Cost Management:** Focus on disciplined cost management and productivity initiatives. - **Capital Expenditures:** Plan to invest $65.0 million in fiscal 2025 for store openings, remodels, and IT initiatives. - **Dividends & Repurchases:** Paid $0.80 per share dividend, no share repurchases in Q1 2025. **Liquidity & Capital Resources:** - **Cash & Cash Equivalents:** $320.8 million as of March 29, 2025. - **Credit Facility:** $843.6 million available for future borrowing. - **Debt:** $500.0 million in senior notes outstanding, maturing in 2027. **Risk Factors:** - **Trade Policy:** Uncertainty regarding future tariffs and trade restrictions. - **Consumer Demand:** Continued pressure on consumer sentiment may adversely impact financial results. - **Goodwill & Intangible Assets:** Potential impairment charges due to macroeconomic conditions.