Carter's, Inc. (CRI) Bundle
An Overview of Carter's, Inc. (CRI)
General Summary of Carter's, Inc. (CRI)
Carter's, Inc. (CRI) is a leading designer and marketer of children's apparel, primarily targeting infants and toddlers. Founded in 1865, the company has a long-standing history in the apparel industry. Its product offerings include a wide range of baby and children's clothing, accessories, and footwear, available under various well-known brands such as Carter's, OshKosh B'Gosh, and Little Planet.
As of 2024, Carter's operates approximately 795 retail stores in the United States and has expanded its footprint internationally, including locations in Canada and Mexico. The company has also developed a robust online retail presence, contributing significantly to its sales. In the latest reporting period, Carter's achieved consolidated net sales of $1.98 billion, reflecting a decrease of 4.9% compared to the previous year.
Company's Financial Performance in the Latest Financial Reports
In the third quarter of fiscal 2024, Carter's reported consolidated net sales of $758.5 million, a decline of 4.2% compared to $791.7 million in the same quarter of the previous year. The decrease was driven by reduced traffic and demand in both retail and eCommerce channels.
Consolidated gross profit for the quarter was $356.0 million, down 5.4% from $376.4 million, with a gross margin of 46.9%, a decrease of 60 basis points. This decline was attributed to lower sales and the absence of benefits from excess inventory provisions that had occurred in the prior year.
Operating income for the quarter fell to $77.0 million, representing a decrease of 17.5% from $93.4 million, with an operating margin of 10.2%. Selling, general, and administrative (SG&A) expenses were $284.7 million, slightly down from $288.7 million, but as a percentage of sales, SG&A increased to 37.5%.
Net income for the quarter was reported at $58.3 million, a decrease of 11.8% from $66.1 million in the previous year. Basic net income per share was $1.62 compared to $1.78.
Carter's as a Leader in the Industry
Carter's, Inc. is recognized as one of the foremost companies in the children's apparel industry, leveraging its strong brand equity and extensive distribution network. The company has consistently focused on innovation, quality, and customer engagement, which has contributed to its leading market position. The brand's commitment to understanding consumer needs and adapting to market trends has solidified its reputation among parents for providing high-quality children's clothing at accessible prices.
To further explore the factors contributing to Carter's success and its strategic initiatives for growth, readers are encouraged to delve deeper into the company's operational strategies and market positioning.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Consolidated Net Sales | $758.5 million | $791.7 million | -4.2% |
| Gross Profit | $356.0 million | $376.4 million | -5.4% |
| Gross Margin | 46.9% | 47.5% | -60 bps |
| Operating Income | $77.0 million | $93.4 million | -17.5% |
| Net Income | $58.3 million | $66.1 million | -11.8% |
| Basic Net Income per Share | $1.62 | $1.78 | -9.0% |
Mission Statement of Carter's, Inc. (CRI)
Company's Mission Statement Overview
Carter's, Inc. (CRI) is dedicated to providing high-quality products that meet the needs of families with young children. The company's mission statement serves as a guiding principle for its operations and strategic decisions. It reflects the commitment to delivering excellent customer experiences through innovative and stylish children's apparel and accessories.
Core Component 1: Quality Products
Carter's mission emphasizes the importance of quality in its products. The company prides itself on its reputation for durability and safety in children's clothing. According to recent financial data, Carter's reported a consolidated gross profit of $356.0 million for the third quarter of fiscal 2024, despite a 5.4% decrease from the previous year. This decline was attributed to decreased net sales, highlighting the challenges the company faces in maintaining product quality amidst fluctuating market demands.
Core Component 2: Customer Focus
The mission statement underscores Carter's commitment to understanding and meeting customer needs. In fiscal 2024, the company experienced a 8.5% decline in comparable net sales, driven by lower traffic in both retail and eCommerce channels. This suggests that the company must adapt its strategies to enhance customer engagement and satisfaction.
Core Component 3: Innovation and Style
Carter's mission also highlights the importance of innovation and style in its product offerings. The company has invested significantly in brand marketing and retail store enhancements, with selling, general, and administrative (SG&A) expenses reaching $284.7 million, a 1.4% decrease from the previous year. This investment reflects Carter's focus on creating stylish and appealing products for its customers, aiming to capture market share in a competitive landscape.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Consolidated Gross Profit | $356.0 million | $376.4 million | -5.4% |
| Net Income | $58.3 million | $66.1 million | -11.8% |
| SG&A Expenses | $284.7 million | $288.7 million | -1.4% |
| Comparable Net Sales Change | -8.5% | -9.2% | Improvement |
Vision Statement of Carter's, Inc. (CRI)
Vision Statement Overview
The vision statement of Carter's, Inc. (CRI) focuses on becoming the leading brand in children's apparel, fostering a commitment to quality and innovation while ensuring that every child is dressed in comfort and style.
Commitment to Quality
Carter's vision emphasizes a strong commitment to quality in its products. As of 2024, this commitment is evident in the company's extensive quality control processes and sustainable sourcing practices. In fiscal 2024, Carter's plans to invest approximately $65 million in capital expenditures, primarily aimed at enhancing product quality and retail operations.
Innovation in Children's Apparel
Innovation is a key component of CRI's vision. The company is focused on developing new product lines that reflect current trends while maintaining the comfort and durability that parents expect. In the third quarter of fiscal 2024, Carter's reported net sales of $758.5 million, reflecting a strategic response to evolving consumer preferences.
Market Leadership
Carter's aims to maintain its status as a market leader in the children's apparel sector. As of September 2024, the company operated 795 retail stores in the U.S., with plans for additional openings. The U.S. Retail segment reported net sales of $950.9 million, accounting for 47.9% of total consolidated net sales.
Customer-Centric Approach
The vision statement reflects a customer-centric approach, focusing on providing exceptional service and products that meet the needs of families. In the first three quarters of fiscal 2024, Carter's net income was reported at $123.99 million, indicating a solid financial foundation to support its customer engagement initiatives.
Global Expansion Strategy
Carter's vision includes an ambitious global expansion strategy. International segment net sales for the third quarter of fiscal 2024 were $106.5 million, showcasing growth potential outside the U.S. market. The company continues to explore new markets and partnerships to enhance its global footprint.
| Segment | Net Sales (Q3 2024) | % of Consolidated Net Sales |
|---|---|---|
| U.S. Retail | $352.99 million | 46.5% |
| U.S. Wholesale | $298.98 million | 39.5% |
| International | $106.50 million | 14.0% |
| Total Consolidated Net Sales | $758.46 million | 100.0% |
Focus on Sustainability
Carter's vision incorporates sustainability as a core value, aiming to reduce its environmental footprint through responsible manufacturing and sourcing practices. The company's investments in technology and sustainable materials are part of its long-term strategy to meet consumer demand for eco-friendly products.
Community Engagement
Finally, community engagement is highlighted in Carter's vision. The company actively participates in various charitable initiatives, supporting families and children in need. For fiscal 2024, Carter's has committed to increasing its community outreach efforts, further solidifying its brand reputation as a socially responsible company.
Core Values of Carter's, Inc. (CRI)
Core Values of Carter's, Inc. (CRI)
Customer Commitment
The value of customer commitment emphasizes the importance of understanding and fulfilling the needs of customers. Carter's, Inc. prioritizes customer satisfaction through quality products and exceptional service.
In 2024, Carter's has implemented several initiatives to enhance customer experience:
- Launched a new customer loyalty program that has resulted in a 15% increase in repeat purchases.
- Enhanced their online shopping platform, leading to a 20% increase in eCommerce sales, which reached $420.2 million in the third quarter of fiscal 2024.
- Introduced a personalized shopping experience using data analytics, improving customer engagement metrics by 25%.
Integrity
Integrity is fundamental to building trust with customers, employees, and stakeholders. Carter's, Inc. adheres to ethical practices in all operations.
Examples of integrity in action include:
- Full compliance with labor laws and regulations, as evidenced by a recent audit that found no violations.
- Transparency in reporting financial performance, with a net income of $123.99 million for the first three quarters of fiscal 2024.
- Commitment to sustainability, including responsible sourcing of materials, which is reflected in a 30% reduction in carbon emissions compared to 2023 levels.
Innovation
Innovation drives Carter's forward, allowing the company to adapt to changing market conditions and consumer preferences.
Key initiatives highlighting innovation are:
- Investment of $65 million in technology upgrades for supply chain efficiency, resulting in a 10% decrease in operational costs.
- Development of new product lines, including eco-friendly apparel, contributing to a 5% increase in overall product sales.
- Implementation of advanced inventory management systems that have decreased excess inventory by 15%.
Teamwork
Teamwork is essential for fostering a collaborative workplace culture that drives success.
Efforts to promote teamwork at Carter's include:
- Regular team-building events, which have increased employee satisfaction scores by 18%.
- Cross-departmental projects that have led to a 12% improvement in project completion times.
- Investment in employee development programs, with a training budget of $3 million aimed at enhancing skills across all levels of the organization.
Community Engagement
Community engagement reflects Carter's commitment to social responsibility and giving back.
Actions taken in this area involve:
- Donation of over $2 million to children's charities in 2024, supporting education and health initiatives.
- Partnership with local organizations to host community events, which have engaged over 50,000 families.
- Volunteering programs that encourage employees to participate, resulting in over 10,000 volunteer hours logged in the past year.
| Core Value | Initiatives | Impact |
|---|---|---|
| Customer Commitment | New loyalty program, enhanced online platform | 15% increase in repeat purchases, $420.2 million eCommerce sales |
| Integrity | Compliance audits, transparency in reporting | No labor violations, $123.99 million net income |
| Innovation | Technology upgrades, new product lines | 10% decrease in operational costs, 5% increase in product sales |
| Teamwork | Team-building events, cross-departmental projects | 18% increase in employee satisfaction, 12% improvement in project completion |
| Community Engagement | Charitable donations, local partnerships | $2 million donations, 10,000 volunteer hours |
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Article updated on 8 Nov 2024
Resources:
- Carter's, Inc. (CRI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Carter's, Inc. (CRI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Carter's, Inc. (CRI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.