Carter's slides on downbeat 2024 forecast

Carters

26/07/2024 14:12

** Shares of Carter's  CRI.N  down 8% premarket to $55.01
after baby apparel retailer's dour forecast 
    ** CRI could open at lowest levels since Dec 2012, if losses
hold
    ** Co late Thurs said expects annual sales of $2.785-$2.825
bln, down from prior outlook of $2.95-$3 bln 
    ** For 2024, it expects adj EPS of $4.60-$5.05, below LSEG
estimate of $6.20
    ** Q2 sales fell 6% yr/yr to $564 mln, below consensus of
$568 mln, while adj EPS of 76 cents topped estimate of 49 cents
    ** The qtr got off to slow start in Apr with earlier Easter
holiday and late arrival of warm weather, CEO Michael Casey said
in statement
    ** Inflation has not moderated as much as expected at
beginning of year, and likelihood of interest rate reductions
now less certain, Casey said
    ** Avg rating among 8 analysts on CRI is "hold" and median
PT is $70
    ** Through Thurs, CRI shares have shed 20% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))