Children’s apparel retailer Carter’s has generated $791.7m in sales in the third quarter (Q3) of fiscal year (FY) 2023, down 3.3% from $818.6m in the same period FY22.
Net sales for the company’s US Retail and International segment dropped 8.2% and 4.5%, respectively, in Q3 FY23.
During the quarter, operating income of Carter’s increased 2.0% to $93.4m, against $91.6m in Q3 FY22. Its operating margin increased to 11.8% in Q3 FY23 compared to 11.2% in the same quarter of the previous year.
The company’s net income was $66.1m in Q3 FY23, up slightly from $65.0m in the same period a year ago.
Its earnings per diluted share were $1.78 in Q3 FY23, against $1.67 in the third quarter of FY22.
In the first three quarters of the FY, net sales of Carter’s decreased by 9.3% to $2.09bn, compared to $2.30bn in the same period a year ago.
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The retailer delivered a net income of $126.0m and diluted EPS of $3.36 during this period.
In the fourth quarter of FY23, the company expects net sales in the range of $862m to $877m.
Carter’s expects net sales of $2.95bn to $2.965bn in the full year of 2023.
Carter’s chairman and chief executive officer Michael Casey said: “We achieved our sales and earnings objectives in the third quarter. In our US Wholesale segment, demand for our fall and holiday product offerings was higher than planned. Our wholesale customers entered this year leaner on inventories and they planned consumer demand cautiously for 2023.
“For the fourth consecutive quarter, we saw higher than planned wholesale demand for our brands which provides fresh product offerings for consumers and better sell-throughs for our wholesale customers.”