Stock Track | Carter's Stock Plunges 8.91% Pre-market on Disappointing Fiscal 2025 Earnings Outlook

Stock Track
25 Feb

Carter's, Inc. (CRI) stock plummeted 8.91% in pre-market trading on Tuesday, following the company's disappointing earnings guidance for fiscal 2025. The children's apparel retailer provided the following key outlook:

Fiscal 2025 Guidance:

  • Adjusted EPS range of $3.20 - $3.80, well below analyst estimates of $4.87
  • Net sales in the range of $2.78 billion to $2.86 billion, compared to $2.84 billion in fiscal 2024

Q1 Fiscal 2025 Guidance:

  • Net sales range of $615M - $625M, lower than analyst estimates of $653M

The company cited several factors weighing on its profitability outlook for fiscal 2025, including lower pricing in the first half, higher product costs, and increased variable compensation provisions. Carter's plans to rely less on pricing actions and focus more on improving merchandise assortments and inventory positions in the second half of the year.

The disappointing guidance from Carter's, along with concerns over macroeconomic headwinds impacting consumer demand, seems to have triggered the sharp pre-market sell-off in the company's stock.

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