American firm Carter's revenue at $2.95 bn in FY23

Operating income for FY23 also decreased by $55.8 million or 14.7 per cent, bringing it to $323.4 million from the previous year's $379.2 million. This led to an operating margin decrease of 80 basis points, down to 11 per cent. Adjusted operating income, a measure excluding certain non-standard items, similarly fell by 15.5 per cent to $327.8 million, with the adjusted operating margin down by 100 basis points to 11.1 per cent, the company said in a press release.

Net income followed this downward trend, decreasing by 7 per cent to $232.5 million from $250 million in FY22. Diluted earnings per share also saw a slight decrease of 1.6 per cent to $6.24. Adjusted net income and adjusted earnings per diluted share, both non-GAAP measures, showed a 15.2 per cent and 10.3 per cent decrease, respectively.

“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 favourable 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,” said Michael D Casey, chairman and chief executive officer.

Net sales in the fourth quarter of FY23 (Q4 FY23) decreased by 5.9 per cent to $857.9 million, compared to $912.1 million in Q4 FY22, with US retail and US wholesale experiencing declines, whereas international net sales grew by 4.6 per cent. Despite this, operating income saw a notable increase of 24.2 per cent to $136.1 million, with operating margin jumping 390 basis points to 15.9 per cent. This improvement contrasted sharply with the 30.5 per cent decline in operating income over the first three quarters of FY23.

Adjusted operating income for Q4 rose by 14.8 per cent to $136 million, with the adjusted operating margin increasing by 290 basis points to 15.9 per cent. Net income and diluted earnings per share experienced significant increases of 32.8 per cent and 37.5 per cent, respectively. Adjusted net income and adjusted diluted earnings per share also increased by 16.3 per cent and 20.6 per cent, respectively.

Fibre2Fashion News Desk (DP)