Carter’s, Inc., the largest branded marketer in the United States of apparel exclusively for babies and young children, reported its fourth quarter and fiscal 2013 results.
“Carter's achieved its 25th consecutive year of sales growth in 2013. This performance reflects our focus on providing consumers with the best value and experience in young children’s apparel, extending the reach of our brands, and improving profitability,” said Michael D. Casey, Chairman and Chief Executive Officer. “We are planning good growth in sales and earnings in 2014, driven by our direct-to-consumer businesses in the U.S. and Canada."
Consolidated net sales increased $80.4 million, or 11.7%, to $769.7 million. Net domestic sales of the Company’s Carter’s brands increased $50.2 million, or 9.7%, to $567.2 million. Net domestic sales of the Company’s OshKosh B’gosh brand increased $8.7 million, or 8.1%, to $116.1 million. Net international sales increased $21.4 million, or 33.0%, to $86.3 million. Foreign currency translation negatively impacted net international sales by approximately $3.5 million, or 5.4%.
Operating income in the fourth quarter of fiscal 2013 decreased $5.0 million, or 6.3%, to $73.4 million, compared to $78.4 million in the fourth quarter of fiscal 2012. Fourth quarter fiscal 2013 operating income includes expenses totaling approximately $21.0 million related to the previously-announced office consolidation; the amortization associated with the previously-announced acquisition of trade names; the costs to exit retail operations in Japan, the previously-announced Hogansville, Georgia distribution center closure; and the revaluation of contingent consideration associated with the acquisition of Bonnie Togs in 2011.
Fourth quarter fiscal 2012 operating income included expenses totaling approximately $7.5 million related to the office consolidation; the revaluation of the Bonnie Togs contingent consideration; and the Hogansville distribution center closure. Excluding the expenses noted above in both periods, adjusted operating income in the fourth quarter of fiscal 2013 increased $8.5 million, or 10.0%, to $94.4 million, compared to $85.9 million in the fourth quarter of fiscal 2012.
Net income in the fourth quarter of fiscal 2013 decreased $5.9 million, or 12.2%, to $42.7 million, or $0.78 per diluted share, compared to $48.7 million, or $0.81 per diluted share, in the fourth quarter of fiscal 2012. Excluding the expenses noted above in both periods, adjusted net income in the fourth quarter of fiscal 2013 increased $2.5 million, or 4.6%, to $56.2 million, compared to $53.7 million in the fourth quarter of fiscal 2012. Adjusted earnings per diluted share in the fourth quarter of fiscal 2013 increased 14.0% to $1.02, compared to $0.89 perdiluted share in the fourth quarter of fiscal 2012.