Carter's (NYSE: CRI) reported Q3 EPS of $1.61, $0.12 worse than the analyst estimate of $1.73. Revenue for the quarter came in at $924 million versus the consensus estimate of $946.48 million.

Outlook

For the fourth quarter of fiscal 2018, the Company projects net sales to increase approximately 5% compared to the fourth quarter of fiscal 2017 and adjusted diluted earnings per share to increase approximately 10% compared to adjusted diluted earnings per share of $2.33 in the fourth quarter of fiscal 2017. Net sales and adjusted earnings in the fourth quarter of fiscal 2018 assume a partial recovery of lost sales initially planned to Toys “R” Us and Bon-Ton.

For fiscal 2018, the Company projects net sales to increase approximately 1.5% compared to fiscal 2017 and adjusted diluted earnings per share to increase approximately 5% compared to adjusted diluted earnings per share of $5.77 in fiscal 2017. Forecasted net sales and adjusted earnings for fiscal 2018 assume: 1) the Company recaptures approximately $40 million of the $80 million of the lost sales initially planned to Toys “R” Us and Bon-Ton over the last three fiscal quarters of 2018; 2) a reduction in discretionary spending from originally planned levels; and 3) an estimated effective tax rate of approximately 22%. This adjusted fiscal 2018 earnings forecast excludes: 1) the unusual charge of approximately $12.8 million related to the Toys “R” Us bankruptcy (recorded in the first quarter); 2) charges totaling approximately $3.5 million related to changes in the Company’s business model in China (recorded in the third quarter); and 3) a benefit of approximately $0.4 million related to an insurance recovery associated with unusual storm-related store closures (recorded in the first quarter).

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