Carter's, Inc. (NYSE:CRI) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 26, 2018 • 08:30 am ET

Previous

Carter's, Inc. (NYSE:CRI) Q1 2018 Earnings Conference Call - Preliminary Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Welcome to Carter's First Quarter 2018 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. After today's prepared remarks, we will take questions as time allows. Carter's issued its first quarter 2018 earnings press release earlier this morning. A copy of the release and presentation materials for today's call have been posted on the Investor Relations section of the company's website at www.carters.com.

Before we begin, let me remind you that statements made on this conference call and in the company's presentation materials about the company's outlook, plans, and future performance are forward-looking statements. Actual results may differ materially from those projected. For a discussion of factors that could cause actual results to vary from those contained in the forward-looking statements, please refer to the company's most recent annual report filed with the Securities and Exchange Commission and the presentation materials posted on the company's website.

On this call, the company will reference various non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the GAAP financial measurements is provided within the company's earnings release and presentation materials. Also, today's call is being recorded. And now, I would like to turn the call over to Mr. Casey.

Executive
Michael Dennis Casey

Thanks very much. Good morning everyone. Thanks 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. We achieved the first quarter sales and earnings goals that we shared with you on the last call. Our growth was driven by our Retail and International segments. As expected, our wholesale sales were lower than last year, but better than planned given earlier demand for our spring product offerings. In the first quarter, we launched our new Carter's brand marketing campaign. Our With You From the Start campaign highlights those special moments in the early years of a child's life. We'll share a link to that marketing with you this morning.

Earlier this year, we extended the scope of our Simple Joys brand, designed exclusively for Amazon Prime customers, with the launch of toddler playwear, building on the successful launch of baby apparel and sleepwear last year. In the first quarter, we launched our Skip Hop brand in our Canada stores, and it's off to a very good start. And we also recently launched a new brand by Skip Hop called Skidaddle. Our new Skip Hop brand is now selling in over 3,800 Walmart stores throughout the United States and on Walmart.com. With respect to business trends this year, we saw good growth in retail sales in January and business slowed a bit in February. We saw the best growth in March, which is one of the largest months of our year, with comparable retail sales up about 6%.

Consistent with our historical experience, an early Easter is a good traffic driver only