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Carter’s (CRI) 3Q18 Result: Company Misses Expectations and Lowers Guidance Due to Toys“R”Us and Bon-Ton Closures

Executive Summary

  • Carter’s reported fiscal 3Q18 revenues of $923.9 million, down 2.5% year over year and lower than the $944.4 million consensus estimate. Adjusted earnings per share (EPS) was $1.61, lower than the consensus estimate of $1.73 and lower than the EPS of $1.70 in the year-ago quarter.
  • Total comparable sales were up 0.5%; the company had planned comps to grow by over 3% but saw a decline in traffic during its Labor Day sale.
  • For the full year, the company lowered its revenue guidance to1.5% growth from prior guidance of 3.0% growth, compared to the consensus estimate of 2.3% growth. Carter’s lowered its EPS growth forecast for the full year to 5%, $6.05, from 12%, $6.45, which was also the consensus estimate.

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