Carter's, Inc. has reported its first quarter fiscal 2025 results, revealing a decrease in net sales to $630 million from $661 million in Q1 2024. Additionally, diluted EPS fell to $0.43 from $1.04 in the same period. Adjusted diluted EPS also declined to $0.66 from $1.04.
The company returned $29 million to shareholders through dividends in Q1. However, it has suspended forward guidance due to CEO transition and tariff uncertainty. The first quarter of fiscal 2025 included pre-tax expenses of $6.1 million related to the retirement of the company's previous CEO and $3.2 million related to operating model improvement initiatives.
Net sales decreased by $31.7 million, or 4.8%, to $629.8 million, compared to $661.5 million in the first quarter of fiscal 2024. U.S. wholesale, U.S. retail, and international segment net sales declined by 5.3%, 4.3%, and 4.9%, respectively. U.S. retail comparable net sales declined by 5.2%, with e-commerce outperforming stores.
Operating income decreased by $28.9 million, or 52.6%, to $26.1 million, compared to $55.0 million in the first quarter of fiscal 2024. Adjusted operating income also decreased by $19.6 million, or 35.7%, to $35.4 million, compared to $55.0 million in the first quarter of fiscal 2024.
Net income decreased by $22.5 million to $15.5 million, or $0.43 per diluted share, compared to $38.0 million, or $1.04 per diluted share, in the first quarter of fiscal 2024. Adjusted net income decreased to $23.8 million from $38.0 million, with adjusted earnings per diluted share at $0.66 compared to $1.04 in the first quarter of fiscal 2024.
The company paid a cash dividend of $0.80 per common share totaling $29.0 million in the first quarter of fiscal 2025. No shares were repurchased in the first quarter.
Due to the CEO transition and uncertainty surrounding proposed new tariffs, the company has suspended its forward guidance for 2025. Today the company's shares have moved -8.0% to a price of $35.16. For more information, read the company's full 8-K submission here.
