American kids' apparel marketer Carter's FY20 sales dip 14% to $3 bn

Carter's, a US-based marketer of apparels for babies and young children, has posted 14.1 per cent sales decrease to $3.0 billion during the complete fiscal 2020 that ended on January 2, 2021 compared to the sales of $3.5 billion in the previous fiscal. However, net income for the reported year slipped to $109.7 million (FY19: $263.8 million).

 

Company’s sales decline reflected the temporary closure of stores and for many of the its stores in Canada and Mexico, and decreased sales to certain wholesale customers as a result of disruptions related to the Covid-19 pandemic. However, Carter's e-commerce sales in the US and Canada increased 30 per cent and 71 per cent, respectively during the year.

 

“Despite the ongoing pandemic-related challenges, we achieved our sales and earnings objectives in the fourth quarter,” Michael D Casey, chairman and chief executive officer at Carter's, said in a press release. “The strength and growth of our e-commerce capabilities and exclusive brands sold through Amazon, Target and Walmart helped to mitigate the impact of lower traffic to our stores and demand from international customers.”

 

Gross profit for the year was $1.3 billion ($1.5 billion). Selling, general and administrative expenses remained stagnant at $1.1 billion. Company’s operating income during FY20 fell $189.8 million ($371.8 million).

 

“We’re projecting good growth in sales and profitability in 2021. The new year got off to a good start with the arrival of our Spring product offerings and the benefit from government stimulus payments to families with young children,” Casey said.