Carterís sees a fall of 30% in Q2; net income too expectedly slumps

 

Carterís, the renowned American designer and marketer of kidswear, is out with its second quarter reports.

Predictably, it is disappointing! The stores were closed all through April and May, resulting in no sales and had it not been for its digital presence, numbers could have been worse.

The net sales in Q2 fell by 30 per cent to touch US $ 219.5 million. The operating income fell drastically to reach US $ 21.0 million, compared to US $ 64.5 million in Q2 of fiscal 2019.

Similarly, adjusting operating income (a non-GAAP measure) touched US $ 41.1 million in the quarter Ė a fall majorly owing to poor net sales. Notably, the adjusting operating income during the same period in the previous fiscal year was US $ 63.8 million.

The net income in the second quarter was US $ 8.2 million compared to US $ 43.9 million during the same quarter last year.

Now, if we compare the first half of the year with the same of the last fiscal, the story is almost same.  While net sales fell by 20.7 per cent to touch US $ 1.7 billion, the operating loss has been US $ 57.5 million. The operating loss in the first half of last fiscal was US $ 125.2 million.

Carterís net loss was US $ 70.5 million in the first half compared to net income of US $ 78.4 million in fiscal 2019ís first half. Besides, the retailer clocked an adjusted net loss (a non-GAAP measure) of US $ 11.2 million, compared to adjusted net income of US $ 83.0 million in the first half of last fiscal.

However, with all stores now reopened in the US, and Carterís focusing on strengthening brand marketing and improving pricing, the retailer believes it is in a good position to combat the existing market challenges, which could result in better third quarter and better second half.

Carterís sells its products through its own retail stores as well as through OshKosh Bígosh retail stores, in addition to selling through its e-commerce platform. It generates revenue of US $ 3.4 billion.

 

 

 

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