Home / Knowledge / News / Apparel/Garments / Child of Mine brand sales drop in Q2
Child of Mine brand sales drop in Q2
23
Jul '08
Carter's Inc, the largest branded marketer in the United States of apparel exclusively for babies and young children, reported its second quarter fiscal 2008 results.

"Our second quarter sales were better than expected due to the strength of our Carter's retail segment," noted Michael D. Casey, Executive Vice President and Chief Financial Officer, who will become the Company's Chief Executive Officer on August 1, 2008.

"Our results reflect the benefit of investments made in our new retail leadership team over the past year, the strengthening of our product offerings, and better inventory management," continued Mr. Casey. "In this difficult economic period, our stores continue to offer significant value to the consumer."

Second Quarter of Fiscal 2008 compared to Second Quarter of Fiscal 2007

Consolidated net sales increased 4.8% to $301.7 million. Net sales of the Company's Carter's brands increased 4.1% to $238.0 million. Net sales of the Company's OshKosh brand increased 7.7% to $63.6 million.

Consolidated retail store sales increased 13.9% to $142.5 million. Carter's retail store sales increased 21.5% to $92.7 million, driven by a comparable store sales increase of 17.3%, or $13.2 million, and sales of $3.5 million from new Carter's stores opened since the second quarter of fiscal 2007. OshKosh retail store sales increased 2.0% to $49.9 million, driven by sales of $1.8 million from new OshKosh stores opened since the second quarter of fiscal 2007. Comparable OshKosh retail store sales declined 0.9%, or $0.4 million.

In the second quarter of fiscal 2008, the Company opened two Carter's retail stores. As of June 28, 2008, the Company had 231 Carter's and 163 OshKosh stores. The Company plans to open a total of 25 Carter's and two OshKosh stores during fiscal 2008. The Company also plans to close five Carter's and three OshKosh stores during fiscal 2008.

The Company's wholesale sales increased 4.4% to $108.1 million. Carter's wholesale sales increased $1.0 million, or 1.1%, to $94.3 million. OshKosh wholesale sales increased $3.5 million, or 34.5%, to $13.8 million, due primarily to an increase in off-price shipments in the second quarter of fiscal 2008.

The Company's mass channel sales, which are comprised of sales of our Just One Year brand to Target and Child of Mine brand to Wal-Mart, decreased 13.6% to $51.1 million. Sales of our Just One Year brand increased $0.5 million, or 2.3%, to $21.2 million. Child of Mine brand sales decreased $8.5 million, or 22.2%, to $29.9 million, due primarily to product performance.

In connection with the retirement of Frederick J. Rowan, II, Chairman and Chief Executive Officer, the Company recorded charges during the second quarter of $5.3 million, $3.1 million of which relates to severance and benefit obligations and $2.2 million relates to the vesting of Mr. Rowan's performance-based stock options.

Consolidated operating income in the second quarter of fiscal 2008 was $9.3 million as compared to a consolidated operating loss of $137.9 million in the second quarter of fiscal 2007. Excluding executive retirement charges in the second quarter of fiscal 2008 and impairment and closure costs in the second quarter of fiscal 2007, the Company's adjusted operating income decreased $3.5 million, or 19.5%. This decrease was due to Child of Mine product performance, higher inventory and bad debt provisions, and provisions for incentive compensation.

Net income was $2.8 million, or $0.05 per diluted share, compared to a net loss of $143.4 million, or $2.48 per diluted share, in the second quarter of fiscal 2007. Excluding executive retirement charges in the second quarter of fiscal 2008 and impairment and closure costs in the second quarter of fiscal 2007, the Company's adjusted net income decreased $1.6 million, or 20.9%, and adjusted diluted earnings per share decreased 23.1%.

"While our second quarter sales were better than expected, we will continue to take a cautious outlook for the year given the uncertainty of the current economic environment. Our business continues to produce very healthy levels of cash flow, which enables us to invest in our business," noted Mr. Casey.


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Top executives
Textile & apparel bodies

The decision is transformational

Vikas Banduke

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

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

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...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Silke Brand-Kirsch
Schlegel und Partner

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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

October 2017

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
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

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
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

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
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

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
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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