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
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
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
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
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.