Carter’s, Inc. , the largest branded marketer in the United States of apparel exclusively for babies and young children, reported its third quarter fiscal 2013 results.
“We're reporting a record level of sales in the third quarter, driven by the growth in our Carter's brand and international businesses," said Michael D. Casey, Chairman and Chief Executive Officer. “Our growth reflects the strength of our brands and multi-channel business model. We believe we are well-positioned with strong product offerings and compelling promotions heading into the holiday season and expect to achieve our growth objectives this year."
Third Quarter of Fiscal 2013 compared to Third Quarter of Fiscal 2012
Consolidated net sales increased $91.5 million, or 13.7%, to $760.2 million. Net domestic sales of the Company’s Carter’s brands increased $76.8 million, or 15.6%, to $569.6 million. Net domestic sales of the Company’s OshKosh B’gosh brand increased $0.1 million, or 0.1%, to $106.5 million. Net international sales increased $14.6 million, or 21.1%, to $84.1 million.
Operating income in the third quarter of fiscal 2013 was $91.1 million, a decrease of $4.3 million, or 4.5%, from $95.4 million in the third quarter of fiscal 2012. Third quarter fiscal 2013 operating income includes approximately $13.1 million in expenses incurred in connection with the amortization of tradenames associated with the previously-announced Carter's Watch the Wear and H.W. Carter & Sons brand acquisition, the previously-announced office consolidation, the revaluation of contingent consideration associated with the acquisition of Bonnie Togs in 2011, and the previously-announced Hogansville, Georgia distribution center closure.
Third quarter fiscal 2012 operating income included expenses totaling approximately $1.9 million related to revaluation of the Bonnie Togs contingent consideration and the Hogansville distribution center closure. Excluding the expenses noted above, adjusted operating income in the third quarter of fiscal 2013 increased $6.9 million, or 7.1%, to $104.2 million. This compares to adjusted operating income of $97.3 million in the third quarter of fiscal 2012.
Net income in the third quarter of fiscal 2013 decreased $2.8 million, or 4.7%, to $56.6 million, or $0.97 per diluted share, compared to $59.4 million, or $0.99 per diluted share, in the third quarter of fiscal 2012. Excluding the expenses noted above, adjusted net income in the third quarter of fiscal 2013 increased $4.0 million, or 6.6%, to $65.0 million, or $1.12 per diluted share. This compares to adjusted net income of $61.0 million, or $1.02 per diluted share, in the third quarter of fiscal 2012.
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