From Yahoo Finance: 2025-04-28 05:02:00

North American apparel retailer Carter’s faced a 4.8% decrease in net sales, totaling $629.83m in Q1 FY25 due to macroeconomic factors like inflation and waning consumer confidence. US wholesale, US retail, and international segment sales all declined. Leadership changes saw Michael Casey step down as CEO, with Douglas Palladini taking over on 3 April.

Despite challenges, Carter’s US retail business met sales and earnings targets in Q1 FY25. March showed improved trends in traffic, conversion, and comparable sales, driven by effective product and promotional strategies. US wholesale demand exceeded expectations, while international sales remained strong in Canada and Mexico.

The retailer’s operating income plummeted by 52.6% to $26.10m, with an operating margin decrease to 4.1%. Adjusted operating income also declined by 35.7%. Net income dropped to $15.54m in Q1 FY25. Carter’s has decided to suspend future financial guidance due to uncertainties from leadership changes and potential tariff impacts.

New CEO Douglas Palladini has suspended forward-looking guidance to assess the business for growth potential, citing uncertainties from the tariff situation. This decision comes amidst significant financial declines and operational adjustments. Carter’s is navigating challenges to maintain stability and plan for the future in an uncertain market.



Read more at Yahoo Finance: Carter’s halts guidance amid tariff uncertainty and sees Q1 FY25 sales dip