Carter’s Inc. saw a growth of 1.6 per cent in its sale, which means the company recorded a jump from US $ 57 million to US $ 3.5 billion, derived majorly from USA’s retail and wholesale.
The ongoing changes in foreign currency exchange rates impacted the fiscal’s net sales by US $ 6.1 million, whereas the constant currency yielded 1.8 per cent increase in sales.
Michael D. Casey, Chairman and Chief Executive Officer, Carter’s Inc. said “For the year, Carter’s is reporting a record level of sales, earnings and cash flow, and its 31st consecutive year of sales growth.”
Sales in the retail segment of US swelled from US $ 33 million, i.e., by 1.8 per cent, which equals to US $ 1.9 billion, as compared to the US retail sales that grew only 0.4 per cent.
Notably, Carter’s Inc. opened 43 stores and shut 25 stores in the USA in 2019.
US wholesale segment annual sales increased from US $ 25 million to US $ 1.2 billion, which is 2.1 per cent.
Michael also adds, “During the November and December holiday period, we saw good demand for our brands with comparable retail sales up by more than 2 percent. Profitability in the quarter was lower than last year, and reflects continued investments in our business and higher inventory-related costs.”
Talking about US international sales segment, there was a fall of 0.2 per cent which means from US $ 0.9 million, the annual sales went down to US $ 429.5 million. The company operated 201 retail stores in Canada and 46 retail stores in Mexico, as of the end of 2019.
Projection for 2020
Carter’s Inc. revealed its business outlook for 2020 that the net sales will increase approximately from 2 per cent to 3 per cent.
The company plans to source from China in 2020. Therefore, it is closely keeping an eye on the condition in China. Moreover, the company’s Asian suppliers are yet to be settled. So the impact of production delays on the net profits and growth are uncertain as of now – not to forget the potential effects of Coronavirus outspread.