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Investing.com -- Carter’s (NYSE:CRI) reported better-than-expected first-quarter top and bottom line but withdrew its forward guidance amid tarffis-related macro uncertainty.
The company’s shares fell more than 3% in premarket trading Friday.
The children apparel company posted Q1 earnings per share (EPS) of $0.66, topping the average analyst estimate of $0.62.
Revenue fell 4.8% year-over-year to $630 million, but was still slightly ahead of the $624.86 million consensus.
U.S. retail net sales fell 4.3% year-on-year to $294.4 million, while U.S. wholesale sales declined 5.3% to $250.1 million. Operating income dropped 53% from the prior year to $26.1 million, missing expectations of $32.5 million.
“Our teams delivered a good first quarter. Our U.S. Retail business achieved its sales and earnings plans in the quarter. Trends in March, the most significant month of the quarter, improved meaningfully from performance in January and February driven by the effectiveness of our product and promotional strategies," said the newly appointed CEO and President, Douglas C. Palladini.
Carter’s suspended its forward guidance, citing its "recent leadership transition and significant uncertainty surrounding proposed new tariffs and potential related impact."
"The current tariff situation has introduced substantial uncertainty, greatly complicating our ability to accurately predict Carter’s financial outlook," Palladini said.