Carter’s, Inc., the largest branded marketer of young children’s apparel in North America, today reported its fourth quarter and fiscal 2022 results.

“We saw stronger than expected demand for our brands in the final months of the year which enabled Carter’s to achieve its fourth quarter sales and earnings objectives,” said Michael D. Casey, Chairman and Chief Executive Officer.

“Our supply chain performance improved meaningfully in the second half of 2022, enabling a stronger product offering for holiday shoppers and better on-time deliveries of our new Spring product offerings.

“Despite a very promotional market, we improved price realization in the fourth quarter which, together with lower spending and better inventory results, drove higher than expected cash flow.

“In 2023, we expect inflation will continue to weigh on consumers, especially families with young children. Given the slowdown in consumer demand in 2022, most of our wholesale customers are planning inventory commitments very conservatively in the first half this year, and we plan to do so as well.

“Assuming continued moderation in inflation and improvement in market conditions, we expect that the trend in demand for our brands will improve beginning in the second half this year. Based on a favorable trend in product costs and ocean freight rates, we also expect to see growth in profitability in the second half.

“Carter’s has the broadest distribution of young children’s apparel in North America, selling our brands through nearly 20,000 store locations and on the most successful online platforms, including Amazon, Target, Walmart, Kohl’s and Macy’s.

“No other Company has the scope and depth of relationships that Carter’s has built with the most successful retailers of young children’s apparel. Carter’s is also the largest specialty retailer of children’s apparel with nearly 1,000 stores in North America and multi-brand websites which we believe provide the best value and experience in young children’s apparel. We believe Carter’s is well-positioned to gain share and benefit from the market recovery in the years ahead.”