Carter’s Inc (CRI)

Pretax margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	302,242	264,746	260,232	276,063	316,736	339,743	367,211	413,341	438,290	435,761	427,703	339,970	134,984	168,924	142,277	192,510	327,952	334,059	354,277	346,849
Revenue (ttm)	US$ in thousands	2,921,271	2,974,223	3,000,099	3,080,086	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	3,519,290	3,503,790	3,484,678	3,447,489
Pretax margin		10.35%	8.90%	8.67%	8.96%	10.05%	10.31%	10.93%	12.09%	12.79%	12.99%	12.78%	10.85%	4.51%	5.41%	4.45%	5.65%	9.32%	9.53%	10.17%	10.06%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $302,242K ÷ $2,921,271K
= 10.35%

The pretax margin of Carter’s Inc has shown fluctuations over the periods provided. The pretax margin, which represents the efficiency of the company in generating profits before taxes from its operations, ranged from a low of 4.45% in June 2020 to a high of 12.99% in Sep 2021.

The trend indicates that the pretax margin has generally decreased in recent quarters, with a slight recovery in the most recent period (Dec 2023). This could suggest potential challenges in maintaining profitability or managing operational expenses during the periods when the pretax margin decreased.

It is important for Carter’s Inc to closely monitor and address factors affecting profitability to sustain and improve its pretax margin in the future. This includes analyzing cost structures, pricing strategies, and overall operational efficiency to enhance profitability and shareholder value.