Investing.com — Shares of Carter’s (NYSE:CRI) rose around 1.3% premarket Friday after the company reported its latest quarterly earnings, topping earnings and revenue consensus expectations.
The company posted Q3 earnings per share of $1.84, $0.47 better than the analyst estimate of $1.37, while revenue for the quarter came in at $758 million, above the consensus estimate of $751.9 million.
“Our U.S. Retail sales were better than planned and driven by the strength of our product offerings, and effectiveness of our pricing and brand marketing strategies,” said Michael Casey, the company’s Chairman and Chief Executive Officer.
The company revealed that third-quarter U.S. Wholesale sales were in line with its expectations. However, its sales to department stores and off-price retailers were lower than last year.
Meanwhile, Casey acknowledged the inflationary cycle, but said CRI is benefiting from consumers choosing the ease of one-stop shopping with Target, Walmart (NYSE:WMT), and Amazon (NASDAQ:AMZN).
“Carter’s has an unparalleled competitive advantage as the largest supplier of young children’s apparel to these retailers,” added Casey.
Looking ahead, Carter’s said that with the strength of its high-margin business model and cash flow generation, it has the resources to invest in its growth strategies, which the company expects will better position it to return to growth when market conditions improve.
For Q4, Carter’s sees EPS between $1.32 and $1.72, versus the consensus of $1.86, while revenue is seen between $800 and 840 million, versus the consensus of $825.5 million.
For the full-year, CRI expects its net sales to be from $2.785 billion to $2.825 billion.
