Children’s apparel retailer Carter’s exceeded its own sales and earnings projections in the fourth quarter of fiscal 2021, driven in large part by strong holiday demand and pricing that accounted for supply chain increases including air freight cost spikes, increased tech and employee salary hikes, according to a Friday (Feb. 25) press release.
The company’s quarterly net sales were $1.1 billion, up 7% from the same time in 2020, and up 15% to $3.5 billion for the full year. The company also returned $359 million to shareholders through share repurchases and dividends in fiscal 2021, the release stated.
Looking ahead, Carter’s sees net sales growth of 2% to 3% in fiscal 2022, according to the release.
“For the year, we achieved a record level of profitability, which we believe was driven by structural changes made to our business during the pandemic, including the rationalization of product choices, closure of low margin stores, leaner inventories, more impactful and effective marketing, and improved price realization,” said Chairman and CEO Michael Casey in the release. “We believe these changes have enabled profit margins, which are sustainable and provide a stronger foundation to build on in the years ahead.
“We are planning good growth in sales and earnings in 2022 driven by the strength of our brands, compelling value of our product offerings, and unparalleled multi-channel model that provides the most extensive distribution of children’s apparel in North America,” he added.
Carter’s is forecasting its annual sales growth will top $4 billion by 2026. In fiscal 2021, Carter’s consolidated net sales increased $72.2 million (7.3%) to $1.062 billion, the release stated.
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In July, Carter’s pointed to the child tax credit as a spur to sales over summer as part of the back-to-school frenzy, especially since many children were going to school for the first time in more than a year.
Read more: Carter’s Says Enhanced Child Tax Credit Gives Children’s Apparel a Boost
