Carter's, Inc. has reported its fourth-quarter and fiscal year 2024 results, showing mixed performance. In the fourth quarter of fiscal 2024, net sales increased slightly to $860 million from $858 million in the same period in 2023. However, the operating margin dropped to 9.7% from 15.9% in the fourth quarter of 2023. Adjusted operating margin also decreased to 13.4% from 15.9% in the same period. Diluted EPS fell to $1.71 from $2.90 in the fourth quarter of 2023, and adjusted diluted EPS also declined to $2.39 from $2.76 in the same period.
For the fiscal year 2024, net sales decreased to $2.844 billion from $2.946 billion in 2023. The operating margin dropped to 9.0% from 11.0% in 2023, and the adjusted operating margin decreased to 10.1% from 11.1% in the same period. Diluted EPS fell to $5.12 from $6.24 in 2023, and adjusted diluted EPS also declined to $5.81 from $6.19 in the same period.
The company's operating cash flow for the year was $299 million, with $167 million returned to shareholders through dividends and share repurchases.
Looking ahead to fiscal year 2025, the company anticipates net sales in the range of $2.780 billion to $2.855 billion, adjusted operating income of $180 million to $210 million, and adjusted diluted EPS of $3.20 to $3.80. The company expects a mid-single-digit decline in U.S. retail sales, low single-digit growth to a low single-digit decline in U.S. wholesale sales, and low single-digit growth to comparable international sales.
The company's total liquidity at the end of fiscal 2024 was $1.3 billion, with cash and cash equivalents of $413 million and $845 million in unused borrowing capacity under the company’s $850 million secured revolving credit facility. In the fourth quarter of fiscal 2024, the company returned $28.8 million to shareholders through cash dividends, and in fiscal 2024, it returned a total of $166.7 million to shareholders through cash dividends and share repurchases.
The company's board of directors has declared a quarterly dividend of $0.80 per share.
Carter's, Inc. is focused on managing through periods of uneven consumer demand by leveraging its balance sheet, substantial liquidity, and strong cash flow to invest in growth opportunities.
As the company looks to the future, it has initiated a comprehensive search for a permanent chief executive officer and aims to return to consistent, profitable growth and create value for its shareholders. Today the company's shares have moved -16.2% to a price of $43.65. If you want to know more, read the company's complete 8-K report here.
