* Net sales
* Operating margin 15.9% vs. 12.0% in Q4 2022; adjusted operating margin 15.9% vs. 13.0% in Q4 2022
* Diluted EPS
* Fiscal year 2023 results
* Net sales
* Operating margin 11.0% vs. 11.8% in 2022; adjusted operating margin 11.1% vs. 12.1% in 2022
* Diluted EPS
* Operating cash flow
*
Fiscal year 2024 outlook1:
* Low single-digit growth in net sales to approximately
* Mid single-digit growth in adjusted operating income
* Mid single-digit growth in adjusted diluted EPS
* Board of Directors declares 7% increase in quarterly dividend to
'We saw an improving trend in the demand for our brands in the final weeks of 2023,' said
'In the fourth quarter, we saw higher than planned demand in our
'For the year, our sales and earnings continued to reflect the lingering effects of inflation weighing on families with young children. We saw a noteworthy correlation between the improved consumer sentiment late in the year and the trend in our sales. That favorable trend in sales continued into the early weeks of 2024. With the continued moderation in inflation, growth in real wages, and low unemployment, we believe market conditions may improve in the year ahead.
'Carter's continues to be the market leader in young children's apparel with unparalleled relationships with the largest retailers in
'Carter's has built a resilient multichannel business model which has historically enabled a double digit operating margin, strong operating cash flow, low leverage, and the return of excess capital to our shareholders.
'During the market disruptions in recent years caused by the global pandemic and historic inflation, we focused on higher margin sales driven by strengthening our product offerings, the closure of lower margin stores, leaner inventories, and improved price realization. We expect that these improvements to our operating disciplines will enable Carter's to grow sales and earnings in 2024.
'We enter the new year with a better mix and level of inventories. Inventories last year were reduced by nearly 30% driven by the reduction of excess inventories that grew when inflation surged in 2022 and consumer demand slowed.
'Our growth this year is expected to be driven by our
'We believe Carter's is best in class in young children's apparel. As demonstrated in recent years, Carter's has multiple levers that have enabled us to manage through historic periods of market volatility, and we believe we are well positioned to benefit from the market recovery in the years ahead.'
1 Refer to 'Business Outlook' section of this release for additional information regarding reconciliations of forward-looking non-GAAP financial measures.
Adjustments to Reported GAAP Results
In addition to the results presented in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements, as presented below. The Company believes these adjustments provide a meaningful comparison of the Company's results and afford investors a view of what management considers to be the Company's underlying performance. These measures are presented for informational purposes only. See 'Reconciliation of Adjusted Results to GAAP' section of this release for additional disclosures and reconciliations regarding these non-GAAP financial measures.
Fourth Fiscal Quarter: See full release at:
https://ir.carters.com/news-releases/news-release-details/carters-inc-reports-fourth-quarter-and-fiscal-year-2023-results
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