Carter’s, Inc., a leading children’s apparel retailer, reported a 3% decline in net sales in the third quarter of 2023, reflecting the ongoing impact of inflationary pressures on consumer spending. The company’s financial results revealed a net sales figure of $791.7 million during the quarter, compared to $819.0 million in the corresponding period last year.
Despite the sales decline, Carter’s managed to maintain gross profit margin, which remained stable at 48.5%. However, this was offset by an increase in selling, general, and administrative expenses, resulting in a net income decrease of 15% to $93.2 million, down from $110.3 million in Q3 2022.
The company’s CEO, Michael Casey, acknowledged the challenging economic environment but expressed confidence in Carter’s ability to navigate these headwinds. He stated, ‘We are encouraged by the ongoing strength of our brand and the continued loyalty of our customers. Our team remains focused on executing our strategic initiatives and driving long-term, profitable growth.’
Carter’s also provided an update on its international expansion efforts, with plans to open 20 new stores in Canada and Mexico during the remainder of 2023. The company expects these new locations to contribute to its global growth strategy and strengthen its position as a leading children’s apparel brand.
In light of the current economic uncertainties, Carter’s remains cautious in its outlook for the fourth quarter and the upcoming holiday season. The company anticipates continued pressure on consumer spending, but it is implementing various strategies to mitigate the impact, including ongoing cost optimization and promotional activities.
Overall, Carter’s third-quarter results underscore the challenges faced by retailers in the current economic climate. The company’s resilience and strategic initiatives demonstrate its commitment to maintaining profitability and driving future growth..
