Why Carter's Stock Dropped 17% Early Monday Morning
Shares of Carter's, Inc. (NYSE: CRI), a large North American apparel manufacturer exclusively for babies and young children, dropped as much as 17% early Monday morning, before recovering some, after the company's fourth-quarter profits missed estimates.
Carter's fourth-quarter net sales increased 1.3%, compared to the prior year, to $1.10 billion, which was right in line with analysts' estimates. The bottom line, however, left investors wanting more: Adjusted earnings per share declined 1.1% to $2.81, below analysts' estimates calling for $2.89 per share. U.S. comparable retail sales increased 1.6% and, despite the stock's decline Monday, Carter's 2019 set a record level of sales, earnings and cash flow, as well as posted its 31st consecutive year of sales growth. Management even authorized a new $500 million share repurchase program and bumped up the quarterly dividend by 20% to $0.60 per share.
Image source: Getty Images.
Source Fool.com
