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Carter's Q3 FY20 net income grows 34.8% to $81 mn
27 Oct 20 2 min read
Carter’s, a marketer of apparels for babies and young children, posted 8.3 per cent sales decline to $865.1 million in its third quarter (Q3) for fiscal 2020 that ended on September 26, compared to the sales of $943.3 million in the same period previous fiscal. However, net income for the quarter rose 34.8 per cent to $81.2 million (Q3 FY19: $60.3 million).
“We exceeded our sales and earnings goals in the third quarter,” Michael D Casey, chairman and chief executive officer at Carter’s, said in a press release. “The quarter got off to a strong start with our Fourth of July holiday retail sales up 7 per cent. We saw less robust demand in August during the back-to-school shopping period with many children beginning their school year at home and learning virtually. We had the strongest level of demand in September with our labour day holiday retail sales up 15 per cent, our best performance in three years.”
Gross profit for the quarter was $383.7 million ($402.2 million). Selling, general and administrative expenses were $279.2 million ($296.7 million). Company’s operating income during Q3 FY20 increased to $113.5 million ($83.8 million).
“Earnings in the quarter were driven by the strength of our product offerings, more effective brand marketing, fewer promotions, curtailed spending and growth in e-commerce sales. E-commerce continues to be our fastest growing and highest margin business,” Casey said. “We believe our third quarter performance reflects the strength of our brands, our strong value proposition, broad market distribution and the less discretionary nature of children’s apparel.
US retail segment sales were down to $449.1 million ($464.1 million) during Q3 FY20. US wholesale sales slipped to $302.1 million ($352.2 million) and international sales were $113.7 million ($126.9 million).
“As we enter the final weeks of the year, consumer demand is less predictable this holiday season given the lingering effects and, in some markets, resurgence of the coronavirus. That said, we believe we are well-positioned to outperform the market in the balance of 2020 and years ahead by providing the best value and experience in young children’s apparel,” Casey said in the release.
Fibre2Fashion News Desk (JL)
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