Published on 22 Nov 2021 on Zacks via Yahoo Finance
Solid Demand, Online Show to Aid Carter's (CRI) Amid High Cost
Carter’s CRI looks well poised on the back of favorable demand for products and services. The company has been leveraging cost-management initiatives, price realization and productivity-improvement efforts. In addition, fewer promotions led to the sixth consecutive quarter of gross margin expansion in third-quarter 2021. The top line was aided by growth across retail and international segments. Going ahead, management expects robust demand across all channels.CRI remains focused on strengthening e-commerce capabilities through investments to speed up deliveries. The e-commerce business has been performing well, driven by expanded omnichannel facilities, including curbside pickup, same-day pickup, buy online and pickup at store and ship from store along with easy access to a broad array of online products when shopping in stores. As a result, Carter’s e-commerce penetration in the United States is anticipated to grow 40% in 2021, suggesting a rise from less than 32% in 2019. International e-commerce sales are expected to exceed $100 million in 2021.Driven by solid international demand and improved price realization, management raised its 2021 guidance. The company now anticipates yearly sales of $3.45 billion, which is expected to represent 98% of the pre-pandemic levels. Adjusted earnings are envisioned to be $7.57, suggesting a rise from the last year’s reported figure of $4.16 million.Carter’s issued an upbeat fourth-quarter view, with sales expected to be $1,025 million. Adjusted earnings are envisioned to be $2.00 per share, with an adjusted operating income of $127 million. It also noted that it has kickstarted the fourth quarter on a solid note.Consequently, shares of this Zacks Rank #3 (Hold) company have gained 1.5% in the past three months compared with the industry’s 2.9% growth.
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