Carter's (CRI) Tops Q4 EPS by 12c, Revenues In-Line; Offers FY18 Business Outlook

Carter's (NYSE: CRI) reported Q4 EPS of $2.32, $0.12 better than the analyst estimate of $2.20. Revenue for the quarter came in at $1.03 billion versus the consensus estimate of $1.03 billion.

Fourth quarter fiscal 2017 results

• Net sales $1.03 billion, growth of 10%
• Diluted EPS $2.84, growth of 62%; adjusted diluted EPS $2.32, growth of 30%

Full year fiscal 2017 results

• Net sales $3.4 billion, growth of 6%
• Diluted EPS $6.24, growth of 23%; adjusted diluted EPS $5.76, growth of 12%
• Significant 2017 benefits from the Tax Cuts and Jobs Act to be shared with employees through cash bonuses and enhanced retirement plan contributions
• Board of Directors authorizes new $500 million share repurchase program and 22% increase in quarterly dividend to $0.45 per share
• Full year fiscal 2018 outlook: net sales growth of 5%; adjusted EPS growth of 15%

2018 Business Outlook

For the first quarter of fiscal 2018, the Company projects net sales to increase approximately 2% compared to the first quarter of fiscal 2017 and adjusted diluted earnings per share to be approximately comparable to adjusted diluted earnings per share of $0.97 in the first quarter of fiscal 2017. This forecast for first quarter fiscal 2018 adjusted earnings per share reflects an anticipated effective tax rate of approximately 22%.

For fiscal 2018, the Company projects net sales to increase approximately 5% over fiscal 2017 and adjusted diluted earnings per share to increase approximately 15% compared to adjusted diluted earnings per share of $5.76 in fiscal 2017. This forecast for fiscal 2018 adjusted diluted earnings per share contemplates: 1) adjusted operating income to be approximately comparable to adjusted operating income of $445 million in fiscal 2017, which reflects a significant year-over-year increase in investments in brand marketing and improved eCommerce capabilities; and 2) an effective tax rate of approximately 23%.

For earnings history and earnings-related data on Carter's (CRI) click here.

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