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Carter's net sales increase 1.6% in FY19
25 Feb 20 3 min read
Carter’s, the largest branded marketer in North America of apparel exclusively for babies and young children, posted 1.3 per cent growth in its net sales to $1.1 billion in (Q4) FY19 that ended on December 28, 2019. Net sales for complete fiscal year 2019 increased 1.6 per cent to $3.5 billion compared to FY18 driven by US retail and US wholesale segments.
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Operating income in Q4 FY19 decreased 4.6 per cent to $162.8 million compared to same period prior year. Operating margin in Q4 FY19 fell 14.8 per cent compared to 15.7 per cent in same period prior year. Net income in quarter decreased 4.1 per cent to $125.1 million compared to $130.6 million in same period prior year.
Operating income in complete FY19 decreased 5.0 per cent to $371.9 million compared to $391.4 million in FY18. Net income in FY19 decreased 6.5 per cent to $263.8 million compared to $282.1 million in FY18.
US retail segment sales in the quarter increased 2.2 per cent to $619.9 million. US retail comparable sales increased 1.6 per cent, reportedly driven by growth in eCommerce sales. In the Q4 FY19, Carter's opened 20 stores and closed three stores in the United States.
US retail segment sales for FY19 increased 1.8 per cent to $1.9 billion. US retail comparable sales increased 0.4 per cent. As of the end of Q4 FY19, the company operated 862 retail stores in the United States.
US wholesale segment sales in Q4 FY19 decreased 0.7 per cent to $348.9 million, reflecting an $8.8 million decrease in off-price channel sales and increased demand for the company's exclusive Carter's brands.
US wholesale segment sales for FY19 increased 2.1 per cent to $1.2 billion, reflecting increased demand for the company's exclusive Carter's brands, company reported.
International segment sales in Q4 FY19 increased 2.4 per cent to $131.7 million, reportedly reflecting the growth in Canada and markets outside of North America, partially offset by the change in the company's business model in China.
International segment sales for FY19 decreased 0.2 per cent to $429.5 million, reflecting the change in the company's business model in China and unfavorable movements in foreign currency exchange rates, partially offset by higher demand in Canada and growth in markets outside of North America, as company reported.
For fiscal 2020, the company in their outlook projects net sales will increase approximately 2 per cent to 3 per cent. The company also stated that it is closely monitoring the outbreak of a respiratory illness caused by a novel coronavirus that was first detected in Wuhan, China. The company plans to source approximately 15 per cent of its products from China in 2020. Additionally, the company's suppliers throughout Asia source a significant amount of fabric from China.
Fibre2Fashion News Desk (JL)
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