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

Courtesy: Kai Pilger from Pexels

Textiles | On 24th Apr 2018

Pakistan’s textile exports up 7.77% in July-March FY18

The value of textile and garment exports from Pakistan increased by...

Alliance to form joint entity for safety in factories

Apparel/Garments | On 24th Apr 2018

Alliance to form joint entity for safety in factories

On the 5th anniversary of the Rana Plaza Collapse, The Alliance for...

China’s Alibaba partners with Thailand for digital trade

Textiles | On 24th Apr 2018

China’s Alibaba partners with Thailand for digital trade

China’s Alibaba Group recently signed an agreement with the Thai...

Interviews View All

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Rahuul Jashnani
Jashn

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

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

Leave your Comments


April 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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