Carter’s, Inc. Reports Third Quarter Fiscal 2022 Results

Staff Report

Monday, October 31st, 2022

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

“Historic and persistent inflation has continued to weigh on demand for our brands, and is adversely affecting many families raising young children” said Michael D. Casey, Chairman and Chief Executive Officer.

“A year ago, families with young children were supported by unprecedented government stimulus payments to help them recover from the pandemic. They benefitted from access to vaccines and the relaxation of COVID restrictions. Many began to travel again to reconnect with families and friends. It was a period of optimism.

“By comparison, this year, real wages are lower, gas and food prices remain elevated and many families have struggled to find baby formula given shortages this past year. The global recovery from the pandemic that began last year, and enabled Carter’s to achieve record profitability in 2021, has been disrupted by inflation and lingering supply chain delays.

“Our supply chain performance continued to improve in the third quarter, but on-time deliveries are not yet back to pre-pandemic levels due to port congestion on the East Coast. There are indications that the global slowdown in consumer demand may result in improved deliveries, and lower product and transportation costs beginning in 2023.

“Carter’s has a long history of weathering market disruptions and emerging stronger from them. We are focused on mitigating the effects of current market conditions through inventory management, improved price realization and expense control.

“This is the first holiday shopping season in over 40 years that consumers are weighed down by record inflation. The early indications suggest that holiday shopping may not be as robust as last year. Accordingly, we have widened the range of our sales and earnings forecasts for the fourth quarter and year to reflect current market conditions.”