Home / Knowledge / News / Apparel/Garments / Carter's Q2 earnings affected by higher cotton prices
Carter's Q2 earnings affected by higher cotton prices
03
Aug '11
Carter's Inc, the largest branded marketer in the United States of apparel exclusively for babies and young children, today reported its second quarter 2011 results.

“In the second quarter, we achieved sales growth in every segment of our business, led by the strength of our Carter's brand. As expected, earnings have been affected by higher cotton prices, but our outlook for product costs is improving,” said Michael D. Casey, Chairman and Chief Executive Officer. “We recently completed the acquisition of Bonnie Togs, a Toronto-based children's apparel retailer. We believe the Canadian marketplace represents a meaningful opportunity for growth and this acquisition supports our strategy to extend the reach of our brands outside the United States.”

Second Quarter of Fiscal 2011 compared to Second Quarter of Fiscal 2010

Consolidated net sales increased $67.5 million, or 20.6%, to $394.5 million. Net sales of the Company's Carter's brands increased $58.0 million, or 22.0%, to $321.7 million. Net sales of the Company's OshKosh B'gosh brand increased $9.5 million, or 15.0%, to $72.8 million.

In connection with the Company's acquisition of Bonnie Togs, the Company recorded pre-tax charges in the second quarter of fiscal 2011 of approximately $1.2 million principally related to professional service fees.

Operating income in the second quarter of fiscal 2011 was $22.0 million, a decrease of $11.4 million, or 34.1%, from $33.4 million in the second quarter of fiscal 2010. Excluding the effect of the acquisition-related expenses in the second quarter of fiscal 2011, adjusted operating income in the second quarter of fiscal 2011 was $23.2 million, a decrease of $10.2 million, or 30.6%, from the second quarter of fiscal 2010. The decrease primarily reflects higher product costs.

Net income decreased $6.4 million, or 33.7%, to $12.7 million, or $0.22 per diluted share, compared to $19.1 million, or $0.32 per diluted share, in the second quarter of fiscal 2010. Excluding the effect of the acquisition-related expenses in the second quarter of fiscal 2011, adjusted net income in the second quarter of fiscal 2011 decreased $5.7 million, or 29.8%, to $13.4 million, or $0.23 per adjusted diluted share.

Carter's Brand Businesses

Carter's retail segment sales increased $29.3 million, or 25.8%, to $142.9 million, driven by incremental sales of $20.4 million generated by new store openings and eCommerce sales and a comparable store sales increase of $8.8 million, or 8.1%. In the second quarter of fiscal 2011, the Company opened 14 Carter's retail stores and closed two stores. As of the end of the second quarter, the Company operated 328 Carter's retail stores.

Carter's wholesale sales increased $16.9 million, or 15.2%, to $128.1 million principally due to strong over-the-counter performance of our products.

Carter's mass channel sales, which are comprised of sales of its Child of Mine brand and Just One You brand, increased $11.8 million, or 30.3%, to $50.6 million. The increase was driven by higher sales of our Child of Mine brand, reflecting expanded door growth and additional floor space, as well as timing of customer demand compared to the second quarter of fiscal 2010.

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X