The following is a summary of the Carter's, Inc. (CRI) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Carter's reported Q1 2024 net sales of around $660 million, a dip from $696 million in Q1 2023 due to lower U.S. retail and e-commerce sales.

• Gross profit margin expanded in Q1 due to lower product and inbound freight costs, resulting in higher average cash balances and total liquidity of over $1 billion.

• There was a 23% decrease in inventory and lower borrowing, resulting in a use of cash of $26 million in operating cash flow.

• Carter's returned capital to shareholders with a 7% increase in its quarterly dividend to $0.80 per share, totaling a $38 million return of capital in Q1.

• The financial outlook for Q2 2024 estimates net sales in the range of $560 million to $570 million and adjusted operating income between $25 million to $30 million.

Business Progress:

• Carter's is expecting gradual improvement with strategic actions such as better inventory management, sharper price points, and improved marketing.

• The company has relished success with its Everyday Value program, Little Planet premium brand, and PurelySoft collection, leading to the expansion of product ranges and retail store presence.

• The company is strengthening its U.S. Retail business through store renovations and customization of store assortments based on demographics.

• The e-commerce operations are being optimized with a focus on traffic growth and site performance enhancements.

• Carter's is executing strategic pricing with the implementation of the Everyday Value pricing strategy and early-season discounting. They are also refining their inventory mix and levels while focusing on enhancing user experience and search engine optimization.

More details: Carter's IR

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