1. News
August 1, 2022

Carter’s registers 6.1% decrease in net sales for Q2 2022

The retailer expects net sales of around $3.25bn to $3.30bn for the full year.

US-based children apparel company Carter ’s has reported $700.7m in net sales for the second quarter (Q2) of the fiscal year 2022 (FY22), down by 6.1% from the corresponding period of last year.

During the quarter, the company’s US Retail and US Wholesale net sales dropped by 11% and 3% respectively, while its International net sales grew by 7%.

Its second quarter operating income was $75.4m, down by $32.2m from the same period of FY21, while its operating margin also decreased to 10.8%, compared with 14.4% in the prior-year period.

Carter ’s also witnessed a decline in net income from $71.6m to $37.0m year-on-year and its earnings per diluted share (EPS) for the quarter were $0.93, against $1.62 in Q2 2021.

Carter ’s chairman and CEO Michael Casey said: “After a strong start to the year, our sales slowed in the second quarter.

“In 2021, the United States government provided unprecedented stimulus payments and support to families with young children to help them recover from the pandemic.

“The absence of that support this year, together with the surge in gas prices and inflation, have weighed on consumers’ demand for our brands.”

During the first half (H1) of FY22, Carter ‘s net sales dropped by $51.8m to $1.48bn, a 3.4% decrease from last year.

The company’s US Retail net sales declined by 10% and its US Retail comparable net sales fell by 7% during H1, while its International and US Wholesale net sales increased by 9% and 3% respectively.

For the third quarter of the year, Carter ‘s expects net sales of around $850m to $865m and adjusted operating income of roughly $415m to $440m.

Casey added: “We have revised our outlook for the balance of the year to reflect the trends in our business, and market risks related to inflation and related impact on consumer demand.”