Carter’s Inc (CRI)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	254,728	323,405	379,171	497,079	189,869
Revenue	US$ in thousands	2,843,720	2,911,830	3,150,090	3,425,780	2,967,910
Operating profit margin		8.96%	11.11%	12.04%	14.51%	6.40%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $254,728K ÷ $2,843,720K
= 8.96%

Carter’s Inc has demonstrated fluctuations in its operating profit margin over the years, according to the provided data.

The company's operating profit margin increased from 6.40% as of December 31, 2020, to 14.51% as of December 31, 2021, indicating a significant improvement in profitability. This sharp increase suggests that Carter’s Inc effectively managed its operating expenses relative to its revenue during that period.

Subsequently, the operating profit margin declined to 12.04% as of December 31, 2022, and further decreased to 11.11% as of December 31, 2023. These declines may indicate that the company faced challenges in controlling its operating costs or experienced a decrease in revenue relative to expenses during those years.

By December 31, 2024, the operating profit margin had decreased further to 8.96%, signifying a continued decline in profitability compared to the previous year. This decrease may raise concerns about the company's ability to maintain efficient operations and generate profits at a consistent rate.

In conclusion, while Carter’s Inc experienced a significant improvement in its operating profit margin in 2021, the subsequent declines in the following years suggest the need for the company to focus on cost management and efficiency in order to sustain and potentially enhance its profitability in the future.