Stock Monitor: G-III Apparel Group Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 11, 2018 / Active-Investors.com has just released a free earnings report on Carter's, Inc. (NYSE: CRI). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=CRI. Carter's reported its fourth quarter and fiscal 2017 operating and financial results on February 27, 2018. The maker of children's apparel and accessories beat earnings estimates and provided guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for G-III Apparel Group, Ltd (NASDAQ: GIII), which also belongs to the Consumer Goods sector as the Company Carter's. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Carter's most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=CRI
Earnings Highlights and Summary
Carter's consolidated net sales rose 10%, to $1.03 billion compared to net sales of $934.2 million in Q4 2016. The increase in the reported quarter's sales reflected growth in all business segments and contributions from the 2017 Skip Hop and Mexico licensee acquisitions. Skip Hop, and the acquired business in Mexico contributed $32.9 million and $8.8 million, respectively, to the Company's consolidated net sales in the reported quarter. Carter's reported numbers met analysts' estimates of $1.03 billion.
Carter's operating income in Q4 2017 increased 4.6% to $145.8 million on a y-o-y basis compared to $139.4 million in Q4 2016. The Company's operating margin in the reported quarter decreased 70 basis points to 14.2% compared to 14.9% in the prior year's same quarter. Carter's adjusted operating income advanced 17.9% to $167.4 million compared to $142.0 million in Q4 2016. The Company's adjusted operating margin increased 110 basis points to 16.3% compared to 15.2% in the prior year's comparable quarter, reflecting improved gross margin, principally due to favorable product costs and other sourcing efficiencies, and selling, general, and administrative (SG&A) expense leverage.
Carter's net income totaled $135.7 million, or $2.84 per diluted share, in Q4 2017 compared to $87.1 million, or $1.76 per diluted share, in Q4 2016. The Company's adjusted net income advanced 29.6% to $2.32 versus $1.79 in the prior year's comparable quarter. Carter's reported numbers beat Wall Street's estimates of $2.20 per share.
Carter's consolidated net sales for FY17 advanced 6.3% to $3.40 billion compared to net sales of $3.20 billion in FY16, reflecting growth in the Company's US Retail segment and contribution from the Skip Hop acquisition. The Skip Hop and Mexico acquisitions contributed $96.3 million and $15.4 million, respectively, to consolidated net sales in FY17.
For FY17, Carter's reported net income of $302.8 million, or $6.24 per diluted share, compared to $258.1 million, or $5.08 per diluted share, in FY16. The Company's adjusted earnings per diluted share advanced 12.1%, to $5.76, compared to $5.14 in FY16.
Carter's Business Segment Results
During Q4 2017, the US Retail segment's sales increased 7.2%, to $565.7 million. The Company's US Retail comparable sales increased 4.5% and were comprised of ecommerce comparable sales growth of 19.1% and a comparable retail store sales decline of 1.0%. In Q4 2017, Carter's opened 19 stores and closed 10 stores in the United States.
For Q4 2017, the US Wholesale segment's sales advanced 11.0% to $329.8 million, driven by the contribution from the Skip Hop acquisition and an increase in demand for Carter's brand products.
The International segment's sales increased 20.7% to $131.8 million in Q4 2017, reflecting contributions from the Skip Hop and Mexico acquisitions and growth in Canada and China, partially offset by decreased wholesale demand in other markets outside of the United States. In Q4 2017, the Company opened seven stores in Canada and one store in Mexico.
Cash Matters
Carter's cash flow from operations was $329.6 million in FY17 compared to $369.2 million in fiscal 2016. The decrease primarily reflected unfavorable changes in net working capital.
During Q4 2017, Carter's repurchased and retired 375,814 shares of its common stock for $37.8 million at an average price of $100.55 per share. During FY17, the Company repurchased and retired 2.1 million shares for $188.8 million at an average price of $89.74 per share.
On February 22, 2018, Carter's Board of Directors authorized a new $500 million share repurchase program. Since 2007, the Company has returned a total of $1.5 billion to shareholders through share repurchases and dividends and retired approximately 35% of its outstanding shares.
2018 Business Outlook
For the first quarter of fiscal 2018, Carter's is forecasting net sales to increase approximately 2% on a y-o-y basis and adjusted diluted earnings per share to be approximately comparable to adjusted diluted earnings per share of $0.97 in Q1 2017.
For fiscal 2018, Carter's projects net sales to increase approximately 5% on a y-o-y basis and adjusted diluted earnings per share to increase approximately 15% compared to adjusted diluted earnings per share of $5.76 in FY17.
Stock Performance Snapshot
April 10, 2018 - At Tuesday's closing bell, Carter's' stock advanced 1.95%, ending the trading session at $106.47.
Volume traded for the day: 1.30 million shares, which was above the 3-month average volume of 806.90 thousand shares.
Stock performance in the previous six-month period - up 11.25%; and past twelve-month period - up 20.55%
After yesterday's close, Carter's' market cap was at $5.06 billion.
Price to Earnings (P/E) ratio was at 19.61.
The stock has a dividend yield of 1.69%.
The stock is part of the Consumer Goods sector, categorized under the Textile - Apparel Clothing industry. This sector was up 1.0% at the end of the session.
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