Carter's (NYSE: CRI) reported Q1 EPS of ($0.81), $1.05 worse than the analyst estimate of $0.24. Revenue for the quarter came in at $654 million versus the consensus estimate of $674.9 million.

• Net sales $654 million, decline of 12%
• Loss per diluted share of $1.82; adjusted loss per diluted share $0.81
• Adjusted results reflect store closures in North America, lower wholesale sales, and higher inventory and bad debt provisions related to the COVID-19 pandemic
• The Company believes it has sufficient liquidity to weather the disruption caused by the current global health crisis
• Board of Directors suspends quarterly dividend

“The global pandemic has meaningfully disrupted the lives of families with young children. It began to impact our Company’s performance in March and will weigh on the growth we had planned this year,” said Michael D. Casey, Chairman and Chief Executive Officer.

“Through early March, our sales and earnings were in line with our growth objectives, and 2020 was forecasted to be another good year for Carter’s. In the second week of March, our sales began to decline as consumers reacted to the various media reports which heightened the awareness of significant risks related to COVID-19, and related precautions needed. In the days that followed, for the safety of consumers and employees, our store operations and related sales were suspended.

“Thankfully, Carter’s has remained open for business, and continues to support the demand for our brands through our extensive eCommerce capabilities, both direct-to-consumer, and through the major retailers. We also have the benefit of demand from some of our largest customers, including Target and Walmart, whose stores have remained open.

“Several states have begun to lift restrictions on store operations and stay-at-home orders. We plan to begin reopening some of our stores later this week. We expect the market will gradually begin to recover, and our sales and earnings will benefit from that recovery.

“Over the past several weeks, we have focused on improving liquidity, reducing spending, and enhancing our financial flexibility. We believe steps taken, and underway, together with the support of our customers, business partners, and employees, will enable Carter’s to strengthen its ability to overcome the current market challenges. As stores reopen in the balance of this year, we believe Carter’s will be well positioned to continue providing the best value and experience in young children’s apparel for many years to come.”

2020 Business Outlook

Given the market disruption caused by the COVID-19 pandemic, and related uncertainty on timing and extent of market recovery, the Company is not providing fiscal 2020 sales and earnings guidance at this time.

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