Carter’s Inc (CRI)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	1,365,166	1,372,316	1,392,699	1,401,658	1,395,935	1,393,309	1,387,440	1,426,783	1,472,358	1,549,635	1,587,888	1,625,356	1,662,274	1,635,397	1,610,331	1,477,139	1,313,442	1,314,969	1,333,465	1,420,946
Revenue (ttm)	US$ in thousands	2,844,020	2,811,464	2,843,417	2,878,969	2,911,867	2,964,819	2,990,695	3,070,682	3,150,547	3,294,716	3,361,194	3,420,196	3,425,819	3,353,810	3,345,468	3,133,951	2,993,623	3,120,152	3,196,123	3,409,921
Gross profit margin		48.00%	48.81%	48.98%	48.69%	47.94%	46.99%	46.39%	46.46%	46.73%	47.03%	47.24%	47.52%	48.52%	48.76%	48.13%	47.13%	43.87%	42.14%	41.72%	41.67%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,365,166K ÷ $2,844,020K
= 48.00%

Carter’s Inc has shown a generally positive trend in its gross profit margin over the period from March 31, 2020, to December 31, 2024. The gross profit margin increased steadily from 41.67% in March 2020 to a peak of 48.98% in June 2024. This indicates an improvement in the company's ability to generate profits from its core operations.

While there was some fluctuation in the gross profit margin over the quarters, overall, the trend was upward until the end of 2024. The company experienced a slight dip in the gross profit margin in the last quarter of 2024, falling to 48.00% from the peak of 48.98% in the previous quarter. This could be due to various factors such as changes in input costs, pricing strategies, or sales mix.

Carter’s Inc's ability to maintain a gross profit margin above 40% consistently reflects its efficient cost management and pricing strategies. However, it is important for the company to monitor and manage its cost structure effectively to sustain and improve its gross profit margin in the future.