Q2FY15 net zooms 39.4% at baby apparel marketer Carter's
US based marketer of apparel for babies and young children, Carter's, Inc. saw its net income zoom 39.4 per cent year over year in the second fiscal quarter ended July 4, 2015.
Net income in the second quarter of fiscal 2015 increased $10.2 million or 39.4 per cent to $36.1 million, or $0.68 per diluted share, compared to $25.9 million, or $0.48 per diluted share, in the second quarter of fiscal 2014.
“Adjusted net income in the reporting quarter rose $5.7 million or 17.2 per cent to $38.8 million, as against $33.1 million in the prior fiscal second quarter,” the retailer said in a press release.
Adjusted earnings per diluted share in the same quarter grew higher at 19.4 per cent to $0.73, from $0.61 in the second quarter of fiscal 2014.
The Company estimates that changes in foreign currency exchange rates in the quarter under review when compared to second quarter of fiscal 2014 had an immaterial effect on adjusted earnings per diluted share.
In the second quarter of fiscal 2015, consolidated net sales ascended $38.7 million or 6.7 per cent to $612.8 million, reflecting growth in all business segments.
Carter's added that changes in foreign currency exchange rates in the second quarter of fiscal 2015 negatively impacted consolidated net sales by $5.6 million or 1.0 per cent.
On a constant currency basis, consolidated net sales in the second quarter of fiscal 2015 climbed 7.7 per cent over the same quarter in the earlier fiscal.
Operating income in the quarter under review surged $14.6 million or 30.8 per cent to $62.0 million, as against $47.3 million in the second quarter of fiscal 2014.
Operating margin lifted 190 basis points to 10.1 per cent compared to 8.2 per cent in the previous fiscal second quarter.
During the second quarter of fiscal 2015, the Company paid a cash dividend of $0.22 per share totaling $11.5 million.
During the reporting period, Carter's repurchased and retired 346,325 shares of its common stock for $34.8 million at an average price of $100.40 per share.
According to the retailer which also operates in Canada, all shares were repurchased in open market transactions pursuant to applicable regulations for such transactions.
As of July 28, 2015, the total remaining capacity under the Company's previously-announced repurchase authorisations was $126 million.
For the third quarter of fiscal 2015, Carter's projects net sales to increase approximately 7 per cent over the third quarter of fiscal 2014.
It also expects adjusted diluted earnings per share to increase around 10-15 per cent over the corresponding quarter of previous fiscal. (AR)
Fibre2Fashion News Desk - India