Carter's, Inc. (CRI) on Q1 2021 Results - Earnings Call Transcript

Operator: Welcome to the Carter's First Quarter 2021 Earnings Conference Call. On the call today are Michael Casey, Chairman and Chief Executive Officer; Richard Westenberger, Executive Vice President and Chief Financial Officer; Brian Lynch, President; and Sean McHugh, Vice President and Treasurer. Carter's issued its first quarter 2021 earnings press release earlier this morning. A copy of the release and the presentation materials for today's call have been posted on the Investor Relations section of the company's website at ir.carters.com. Michael Casey: Thanks very much. Good morning, everyone. Thank you for joining us on the call. Before we walk you through the presentation on our website, I'd like to share some thoughts on our business with you. Carter's is off to a very good start this year. First quarter sales and earnings are meaningfully better than we had planned, with growth in each of our Retail, Wholesale and International segments. We saw a surge in demand for our brands in March in the weeks leading up to Easter, with consumers responding very positively to the strength of our product offerings, and compelling value proposition. We also believe we realized a significant benefit from the unprecedented government stimulus, supporting families with young children. Thankfully, the benefits from the $1.9 trillion stimulus package will continue this summer, providing families as much as $300 a month for children under the age of 6 in the second half this year, and as much as $8,000 in tax credits for child care next year. With continued progress with vaccinations, we believe we may see a more meaningful recovery from the pandemic this year. Accordingly, we have raised our sales and earnings forecasts for 2021. In terms of sales trends, we got off to a good start in January with strong demand for our new spring product offerings. We lost ground in February with winter storms in important markets, including Texas. Sales in March were significantly better than planned. Historically, given the seasonality of our business, our sales in March are more than January and February sales combined. It's typically the largest month of sales and earnings contribution in the first half of our year. Sales in March were up nearly 60% compared to last year. It was the strongest demand in March that we have seen in the past 5 years. Richard Westenberger: Thank you, Mike. Good morning, everyone. I'll begin on Page 2 with our GAAP income statement for the first quarter. Net sales were $787 million, up 20% from last year. Reported operating income was $127 million compared to a loss of $78 million a year ago. And reported EPS was $1.96 compared to a loss per diluted share of $1.82 a year ago. Recall that last year's reported results included the adverse effects of the early days of the pandemic, including store closures, which began in mid-March, the suspension of shipments to many of our wholesale customers, meaningful inventory charges and impairment charges related to goodwill and intangible assets. Operator: First question comes from Lorraine Hutchinson with Bank of America. Lorraine Hutchinson: I wanted to ask about like how you're thinking about gross margins for the full year. Where do you see this shaking out versus the 43% achieved in the last 2 years? And then will any gains be sustained into next year in your plan? Richard Westenberger: On gross margin, we're expecting nice expansion on a full year basis. It would be well ahead of what we achieved over the last couple of years, and it's based on some of the things that we've talked about here. We're making great progress with improving our realized pricing, which is, in turn, I think, a reflection of our assortments continuing to improve and be very compelling to the consumer. Our marketing programs continue to improve in their effectiveness and their efficiency. And we're continuing to work on our supply chain and all the other inputs that go into it. So right now, probably too early to give guidance for next year, but we're going to have very good progress this year. Operator: Our next question comes from Paul Lejuez with Citigroup. Paul Lejuez: Just keeping on that gross margin. I'm curious if you look at gross margin in the first quarter of this year versus 2 years ago. How much of that improvement is price realization versus mix shift? And also I'm curious if there's anything onetime motion in nature about this year's first quarter gross margin is related to the flow of inventory over the past year and write-off amount is included. And then looking more ahead, you did call out some inflationary pressures. Curious what you will be talking about in terms of the pressures you might be seeing? And then we would start to see that flow through the . Michael Casey: Paul, I would say it was a little choppy in terms of hearing your message. But your focus was on what's driving the gross profit margin relative to a couple of years ago. It's driven by the strength of the product offering. Best margin is on product selling well. And we have -- we started a process a year or so ago in terms of buying inventories more conservatively. So we've been leaner on inventories. We have a relatively new Head of Marketing, he and his team have done an outstanding job focusing our marketing on more the emotional content of the brand and less of the promotions. So as a result of the strength of the product offering, leaner inventories, more effective marketing, we're seeing better sell-throughs on our product, less product on the clearance rack at the end of the season and better margin. So I would expect that we would continue to build on the margin performance we have this year going forward. Paul Lejuez: Okay. Was there any mix shift they have versus year ago? Michael Casey: Yes, certainly, because largely, eCommerce. eCommerce is driving the business and we're adding it out. We're closing the lower margin stores and driving more of our consumers to our very high-margin eCommerce business, and our higher-margin stores located closer to their homes. Paul Lejuez: All right. And then just the second piece was earlier you said, you mentioned some higher pricing -- higher price that you might be seeing on the commodity side. How much that flows through the P&L? When might we see it? And what sort of magnitude? Richard Westenberger: I'd say on input costs, Paul, I think that was your question. We're in the early stages of putting our initial assortments together for next year. So I would say it's, first of all, a very dynamic situation, and it's in process at the moment. What we've seen so far are that some of the input costs related to fabric are higher. Cotton has been generally higher than it was a year ago. Oil prices have moved up, which becomes a component -- an input component in some of our products. So those are the elements. I think there's also -- a lot of fabric comes out of China. There's varying moves that a lot of companies like us are making to move our production a bit around relative to some of the issues that have come up relative to some of the ESG issues in China, all of which has served to constrain fabric availability more broadly. So we're working with our team in Hong Kong and our supply chain is on top of it. Probably too early to try and quantify it. We're just raising the flag a bit to say this is what we're seeing so far as we put those assortments together. Michael Casey: We'll share visibility of the spring 20 product cost when we update you again in July. Operator: Our next question comes from Susan Anderson with B. Riley. Susan Anderson: Nice job in the quarter. On the guidance for second quarter, I curious kind of what's changing from first quarter to second quarter? It looks like the revenue and earnings guide is not at 2019 levels where we saw first quarter, obviously, outperformed that. So just kind of curious your thoughts on kind of what's changing there, sequentially? Richard Westenberger: Well, the pattern of the business can change very considerably from quarter-to-quarter, Susan. We're expecting very good revenue growth. I think if you look back to last year, we had a substantial portion of the stores closed for most of second quarter. We had suspended shipments to our wholesale customers as they were trying to figure out what their reaction to the news and the arrival of the pandemic meant. So we're going to have very, very strong growth. I'm not sure that it's really comparable to what we did in the first quarter because I think the comparison to last year changes pretty meaningfully. But we're expecting solid growth across wholesale. We're expecting good growth in our Retail business. Expecting good growth in International and continued margin expansion. So all told, we're expecting a very good quarter here. Susan Anderson: Great. And then just on the inventory front. So it sounds like maybe you feel like you could have more inventory. I guess how are you thinking about inventory levels in the second quarter and back half? I know you called out a comparability issue of releasing the inventory last year. So I guess, does that mean you won't have as much inventory this year? Or were you able to plan for somewhat higher inventory for back-to-school, given we should have a more normalized back-to-school this year? Richard Westenberger: Well, I'd say 2 things. One, we have taken some steps to expedite and try and bring products in as early as we can because of the demand we're seeing, that will be a good thing. Just from a forecast point of view, I'm expecting inventories will be probably more flattish here as we exit the second quarter, and they'll be up a bit in Q3 and then declining a bit towards the end of the year. We have, in some cases, increased our inventory levels where we were able to add to our commitments just given the strong projected demand. Some of that would relate to the back-to-school season, but we did increase some of our inventory buys in order to have a little bit more on hand to meet the demand that we're forecasting. It is a very dynamic situation, and it's week to week. I don't envy the folks in our operational area who are trying to keep track of all of this for us. But with the myriad of transportation delays, and now, as I mentioned, more factory related issues as they're dealing with the surge in the infections in some of these key countries, it has caused some delays. And generally though -- in general, we're trying to bring a product in as quickly as we can. And in some cases, that may mean that we hold it a bit longer, and we'd rather have it on hand than have the uncertainty of when it may show up. Operator: Our next question comes from Jim Chartier with Monness, Crespi, Hardt. Jim Chartier: First, I was wondering if you could provide a little more color on the tween squad assortment and Little Planet. How big are those assortments? What's the ultimate market opportunity do you see for those businesses? And how do you see the timing of rollout play out? Michael Casey: Sure. Jim, just to give you a little detail. Little Planet, I'm really excited about. Both are new sustainable, accessible premium brands. Richard shared with you, and we piloted this actually before the pandemic, and we had some good learnings, so we decided to really launch it in a more fulsome way this March. It's online in our website. It's in about 400 Target stores and on target.com as well. It's really beautiful merchandise if you get a chance to look at it. We've had really strong response to the marketing efforts. It's mostly organic cotton, and it's all about sustainability. So the early reads are exceeding expectations. I hesitate to put a number on it right now. But we do think it's going to grow, and we think it can help us reach even a broader market. There are a lot of new moms that are really focused on sustainability organics and so we think it's an important part of our business going forward, and we're optimistic, and particularly the baby component of that and up to the toddler. So we'll keep you posted on that progress. But too early to quantify. As far as the tween squad business, that is a emotional branding we've done around our Age Up strategy. And we had really good growth in that strategy going forward. I think on a percentage basis, our toddler and kid product were the largest percentage growth we had in Q1. I think we had a little bit of a bounce backlash from last year when the kids were home, they weren't in school. Almost a mini surge this year between the stimulus and some of the schools opening up, so that helped us as well. But we do think that, again, continue to say this Age Up strategy and tween squad is a component of marketing that. We are adding products. We're adding categories. We think it's a really key way to increase the lifetime value of our customers that we acquire as baby customers, and every additional year that we can keep them in our brand, that's really good for our company. So we're optimistic about that. Again, toddler, and then Big Kid, Big Kid is actually the highest percentage growth business we've had in the company for numerous quarters, including Q1. So we look forward to that going forward. I think back-to-school will be -- we're optimistic that all the schools will be open for the students and for learning as we go into fall, and that's a key time period for us. We'll be celebrating the return to some level of normalcy, and I think that our positioning with Age Up and tween will help us a lot in that period this year as well. Jim Chartier: Great. And then can you just it sounds like you had a very strong Easter week. I'm curious how did the Easter dressy product sell this year? And then how are you planning for holiday dressy assortments? Brian Lynch: We did have a good Easter. We're smiling in the room because we made a decision when we had to decide -- we had to call some of the plays late last year of how spring was going to be. And we actually pack and held our most dressy Easter collections for this time assuming that with the lockdowns and the dark winter or what have you, the business would be softer. So we do have -- we did have a lot of other beautiful product. We kept the baby's first Easter product rolling for our stores and in Target as well. And what happened is we did have a surge in demand around Easter. Our sales were up, I think, 10% over 2019. Profits were higher. And if you put March and April together, what we call Marpil, that also exceeded the 2019 level. So we had a really good selling, but I think the teams did a good job of positioning some of the more casual dresses and some of the wovens we did have in boys to capture some of the demand. But the actual most dressy Easter product we did not have on the floor this year, we packed and held it for next year. Michael Casey: Yes. We found interesting, Jim, the consumer behavior over the past year, our sleepwear business was through the roof because most kids were home virtually learning in their pajamas. As we moved into the spring this year, you saw a lot of the better performance with casual dressing. But as we're moving into the warmer weather months, we're starting to see the nicer outfits, fancier outfits starting to perform better because I think people are anticipating getting out and about and going to visit grandma, going on vacation. And so it's going to be fascinating to see the consumer behavior as more people are vaccinated and when children start to go back to school. And this Age Up strategy that we've had, we're showing good progress with it. The older age segment combined is about a $12 billion market. It's actually slightly larger than the baby and toddler markets combined. And to Brian's point, we're seeing very good progress and growth in those ages 5 to 10-year-old markets with our -- the success of our playwear strategies. Operator: Our next question comes from Ike Boruchow with Wells Fargo. Ike Boruchow: Two questions on DTC. First on eCommerce. Could you maybe talk about just the profitability you're seeing in eCom, maybe not necessarily Q1, but just over the last couple of quarters relative to history? I think you guys have talked about 20% margins in the past. I'm just kind of curious, is that moving up? Is that moving down? And then what are the puts and takes? And then are there plans to expand your DC network to kind of handle more of the fulfillment that you're seeing in eCommerce as you kind of think about that over time? Michael Casey: Sure. So eCommerce continues to be our fastest-growing margin business. And I would say the margins are better than they've been in the last couple of years. So that's the beautiful combination of the stores and eCommerce together. That's -- you'll continue to hear us talk about these omni-channel customers because they are our highest value customers. They shop more frequently, they spend about 3x the single-channel customer on an annual basis. So that is where we're anticipating the growth to come over the next 5 years, both direct-to-consumer and through our wholesale customers. And as we shared with you, the online performance of our brands through our wholesale customers has been particularly good. With respect to the DC, we are leveraging over 600 of our stores in the United States to Hawaii. We're also now starting -- going forward, we'll roll out that capability up in Canada as well. So our multichannel distribution center here in north of Atlanta is getting some relief by supporting the fulfillment of online purchases through the stores. That said, we're looking out over the next 5 years and anticipating that we may need to expand the capacity and that good work is underway. And as I understand, it will probably have a point of view on that, probably within the next 18 months. Ike Boruchow: Got it. And then just a follow-up maybe for Richard to dig in more near term. I know it's difficult with the comparisons, but is there a way to kind of characterize the store comps that you're seeing today? I don't know if you could talk about it relative to last year or '19, but just kind of curious how the store performance is? And then based on your guidance, you've got some really difficult or big problem to have very difficult eCommerce compares, especially in the second quarter. Should we be expecting that in your guidance, you're assuming eCommerce to be negative at any point this year in any quarter? That would be helpful. Richard Westenberger: There's a lot in like so much you've asked. I would say that we're expecting that eCommerce is a little softer in Q2 relative to the 100-plus percent comp we generated in Q2 of last year. Probably not reasonable to assume that we would continue at that torrid pace from a year ago. I think the store comps is probably not meaningful compared to last year because of the closures. I would say we're still running down traffic to 2019. That's how we're trying to kind of benchmark ourselves. We've been running ahead of the industry benchmarks that we look at. So the whole industry continues to be down from a store traffic point of view. We've been running better than those results. And our forecasts indicate that, that will get better overtime, but that continues to be, I think, kind of 1 of the key risks that we're monitoring, how quickly will folks feel comfortable getting out and about and being comfortable being back in stores again. Ike Boruchow: Got it. But you're not assuming negative eCommerce growth in the second quarter, are you, Richard? Richard Westenberger: Yes. We -- eCommerce sale is expected to be down slightly in Q2. Store sales up significantly, wholesale up massively when we weren't shipping anything a year ago. Those would be the drivers. Operator: Our next question comes from Jay Sole with UBS. Jay Sole: I was just going to ask about the second half guidance. Can you just tell us what's implied in the guidance? Because it sounds like if you compare what you guided to last time versus what you -- the Q1 result and the second quarter guidance, the guidance is about $0.50 lower for the second half of the year than what was sort of implied in the last guidance. Is that just conservatism around supply chain delays and, obviously, the nature of the pandemic, we don't know how it's going to play out, or is there some other aspect around something that's going on in the business, maybe tough compares or whatnot, that could be impacting that implied second half guidance? Michael Casey: So Jay, I would say the second half will not be comparable to the second half of 2020. And there's a few things on the sales side that, again, it's important for you to know. We delayed the shipment of our fall product offerings last year into the second half because stores were closed. Those fall product launches, including the core of our Carter's baby product offering, which is Little Baby Basics, that's going in the second quarter this year. That's what's going to drive significant growth in our Wholesale business in the second quarter. And so you're going to have $50 million from last year's shift into the second quarter this year. Richard also referenced, we're bearing store closures. And so we closed over 60 stores to date. We'll close over 100 this year, and that will impact the second quarter this year by some portion, about $40 million. So what we had last year, $40 million more in the second half, and we won't have that in the second half of this year. And again, keep reminding the 53rd week last year, and that was over $30 million. So you got well over $120 million of second half sales last year that won't be repeated in the second half this year. So if you -- we would -- the way we view it, we're having good mid single-digit growth in the second half of this year exclusive of some of those noncomparable items. On the earnings side, again, you got the earnings from that wholesale shift. And you've got the release of reserves in the second half of last year that won't happen this year. We put up some significant reserves in the second quarter last year when the pandemic hit. And as we move through the year, it had better progress with excess inventories working them through the stores. We were able to release over $20 million of inventory reserves in the second half. That won't repeat. And we curtailed compensation across the board significantly when the pandemic occurred last year. Those compensation provisions will be restored this year. So that's the combination of those 3 things as well over $50 million. I'd also say we're going to have higher freight costs because we're expediting the receipt of product from Asia. We're trying to bring it in earlier to get ahead of some of these shipping delays. So I would encourage you to look to the year. This year will be much stronger than what we anticipated just 8 weeks ago. And as we move through the year, we'll have more visibility to what's possible in the second half. We have good visibility in the second quarter. We have a very strong second quarter. And in July, we'll clearly have more visibility of what we think is possible in the second half. But there's significant comparability issues year-over-year. I would encourage you just to look at the year, it will be far better than we expected. Operator: Our next question comes from Warren Cheng with Evercore ISI. Warren Cheng: Just wanted to dig in a little bit deeper on the plus 59% March results. So I know for the past several quarters now, kids and toddler has been outperforming baby. But if we look at that acceleration, the January to February to March, are there any callouts on what drove that by the age group or by category? Michael Casey: The baby apparel was the strongest component of our growth in the first quarter, but we also saw very good growth in toddler, kid and the big kid. So the growth was particularly good across all age segments. In absolute dollars, baby was the largest. In percentage, it was big kid, that 8- to 10-year-old child. That was the -- and I think it's going to be interesting as we move into the second quarter to see the performance as we get closer to that back-to-school period in those older age segments. Warren Cheng: Got it. And just my follow-up. If we take a step back, can you just share your thoughts on what, if anything, has really structurally changed about your business or your industry as a result of COVID? And I'm specifically wondering, if you look in your retail footprint in terms of its size, the right location mix, whether COVID has changed your thinking there longer term? Michael Casey: So on the structural changes, I think, Carter's, like, many good retailers, see the benefit of running leaner on inventory, kind of a scarcity model, having less product on the clearance rack at the end of the season. Our head merchant, together with her team, are focused on products that have longer life cycles attached to them. We used to bring in T-shirts and shorts early spring and then 13 weeks later, discounting those so we could bring in more T-shirts and shorts. And what we realized when stores closed last year, our spring product offering lasted us almost through October, last us well through the summer months into the early part of fall. So our merchants have developed new product offerings like this Bold Basics and other product offerings that has longer life cycles, and we've learned that from some of our better wholesale customers, with some of the product offering we've developed for them. Some of the best-performing styles are styles that have a life cycle of 12 to 24 months. So those are some of the structural changes, leaner inventory, products with longer life cycle. And then, in the footprint, as I've shared with you, I think it's going to be a buyer's market when the dust settles on this pandemic. So whereas we've hit the pause button on store openings, we make a lot of money in our stores. We see a very high-return investment in our stores. And whereas we're closing about 25% of our pre-pandemic store portfolio, I think there's going to be new opportunities to open up co-branded stores, highly productive stores located closer to consumers that provide a high service level to our online customers. So as we move through the balance of this year and into next year, we will continue to reevaluate our store opening plan and look for new opportunities that provide a high-return on investment. Operator: This concludes today's question-and-answer session. I would like to now turn the conference back to Mr. Casey for closing remarks. Michael Casey: Thank you. Well, thank you all for joining us this morning. We look forward to updating you again on our progress in July. Goodbye, everybody. Operator: Thank you. Ladies and gentlemen, this concludes today's presentation. You may now disconnect.
CRI Ratings Summary
CRI Quant Ranking
Related Analysis

Carter's Inc. (CRI) Beats Q1 2024 Financial Forecasts with Strong Sales

Carter's Inc. (CRI) Surpasses Q1 Financial Expectations in 2024

On Friday, April 26, 2024, Carter's Inc. (CRI) reported a significant achievement in its financial performance for the first quarter of fiscal year 2024. The company announced revenue of approximately $661.5 million, which not only reflects a robust sales performance but also exceeds the market's expectations, which were set at $640.5 million. This outperformance is a testament to the company's strong market position and its ability to attract higher and earlier demand from its largest wholesale customers, as highlighted by Michael D. Casey, the Chairman and Chief Executive Officer, during the earnings conference call. The anticipation of challenges such as inflationary impacts and increased provisions for performance-based compensation did not deter Carter's from surpassing its sales and earnings objectives, showcasing the company's resilience and strategic planning.

The earnings conference call, as reported by Seeking Alpha, was a significant event that drew attention from analysts across notable firms, including Evercore ISI, UBS, Wells Fargo, Wedbush Securities, and Citi. This wide-ranging interest from the investment community underscores the importance of Carter's financial performance and strategic direction. The presence of key company executives, including Michael Casey, Richard Westenberger, Kendra Krugman, and Sean McHugh, provided valuable insights into how Carter's managed to achieve such impressive results despite the anticipated challenges. Their discussion highlighted the company's strategic initiatives and the lean inventory positions of their customers, which played a crucial role in driving higher demand for Carter's products.

Financial metrics further illuminate Carter's current market valuation and financial health. With a price-to-earnings (P/E) ratio of approximately 10.87, Carter's stock appears to be reasonably valued, suggesting that investors might find the stock to be an attractive investment opportunity based on its earnings potential. The price-to-sales (P/S) ratio of about 0.88 and an enterprise value to sales (EV/Sales) ratio of approximately 1.15 indicate that the stock is trading at a relatively low price compared to its sales, with the market valuing the company slightly above its sales revenue. These ratios, combined with an enterprise value to operating cash flow (EV/OCF) ratio of around 7.29, highlight the company's moderate leverage in relation to its operating cash flow, suggesting a balanced approach to financing its operations.

Moreover, Carter's earnings yield of roughly 9.20% is an attractive feature for investors seeking income through stock earnings, indicating the potential for profitable returns. However, the debt-to-equity (D/E) ratio of about 1.28 signals a higher level of debt compared to equity, which could be seen as a higher risk factor. Despite this, Carter's strong current ratio of approximately 2.43 demonstrates its capability to cover short-term liabilities with its short-term assets, reflecting a solid financial foundation and good liquidity. This financial health is crucial for Carter's as it navigates the challenges and opportunities in the highly competitive children's apparel market.

Carter's, Inc. Surpasses Financial Expectations in Q1 FY2024

Carter's, Inc. (NYSE: CRI), a Leading Name in Children's Apparel, Exceeds Financial Expectations

Carter's, Inc. (NYSE: CRI), a leading name in the North American market for baby and young children's apparel, has recently shared its financial achievements for the first quarter of fiscal year 2024, showcasing a performance that exceeded both sales and earnings expectations. This success, as stated by Michael D. Casey, the company's Chairman and CEO, is largely due to an unexpected rise in demand from its major wholesale customers. This demand spike is thought to be a result of these customers keeping their inventory levels low, leading them to place larger orders with Carter's earlier than predicted. This strategic move by the company's clients has evidently paid off, contributing significantly to Carter's financial upswing.

The financial metrics provided by Carter's for this quarter are indeed impressive and reflect the company's strong performance. Revenue growth stood at 8.36%, indicating a healthy increase in sales. This is complemented by an even more substantial growth in gross profit, which rose by 11.1%. Such figures suggest that not only is Carter's selling more, but it is also doing so at a higher margin, which is crucial for its profitability. Furthermore, the company's net income saw a remarkable jump of 61.07%, and its operating income increased by 40.45%, showcasing exceptional operational efficiency and profitability.

The company's financial health is further evidenced by its asset growth of 2.53%, indicating a steady expansion in its operational capacity. Moreover, the dramatic increase in free cash flow, which soared by over 1663.69%, and the operating cash flow growth of approximately 9466.8%, are particularly noteworthy. These figures demonstrate Carter's ability to generate cash from its operations, a key indicator of financial stability and operational efficiency. Additionally, the book value per share growth of 8.97% reflects positively on the company's equity value, providing an attractive proposition for investors.

Despite these strong financial indicators, Carter's has also managed to reduce its debt by 4.32%, which is an encouraging sign for investors concerned about the company's leverage. Reducing debt can lead to lower interest expenses, which in turn can contribute to higher net income figures, as evidenced by Carter's recent performance.

Given these financial results, it's no surprise that Carter's Inc. holds a solid Zacks Rank of #3 (Hold) with a VGM Score of A, indicating a strong value proposition for investors. The company's Value Style Score of A, supported by a forward P/E ratio of 11.13, makes it an attractive option for value investors. The upward revision of earnings estimates by analysts, leading to a consensus estimate of $6.45 per share, along with an impressive average earnings surprise of 36.7%, further underscores Carter's potential as a noteworthy investment. These financial achievements and the positive outlook from analysts suggest that Carter's Inc. is well-positioned for continued success in the market.