Home / Knowledge / News / Apparel/Garments / Carter's expects low single-digit growth in net sales for Q3
Carter's expects low single-digit growth in net sales for Q3
29
Jul '09
Carter's Inc, the largest branded marketer in the United States of apparel exclusively for babies and young children, reported its second quarter 2009 results.

“We are very pleased with our performance in the second quarter, which was driven by the strength of our product offerings and very good execution of our inventory management and cost reduction initiatives,” said Michael D. Casey, Chief Executive Officer. “Our outlook for the year has improved based on our first half performance and the growth we anticipate in the second half of the year. We believe we're well positioned to deliver strong performance in this difficult retail marketplace given the compelling design and value of our Carter's and OshKosh B'Gosh products.”

Second Quarter of Fiscal 2009 compared to Second Quarter of Fiscal 2008
Consolidated net sales increased 5.4% to $317.9 million. Net sales of the Company's Carter's brands increased 6.9% to $254.4 million. Net sales of the Company's OshKosh B'Gosh brand decreased 0.3% to $63.5 million.

Consolidated retail sales increased 13.9% to $162.3 million. Carter's retail segment sales increased 18.9% to $110.1 million, with comparable store sales increasing 8.1%. OshKosh retail segment sales increased 4.6% to $52.2 million, with comparable store sales increasing 2.6%. Consolidated retail operating income increased $9.6 million to $17.4 million, driven primarily by Carter's retail sales growth and OshKosh retail gross margin improvement.

In the second quarter of fiscal 2009, the Company opened 11 Carter's and three OshKosh retail stores. As of the end of the second quarter of fiscal 2009, the Company operated 271 Carter's and 168 OshKosh retail stores.

Carter's wholesale sales increased $5.8 million, or 6.1%, to $100.1 million due to increased product demand. OshKosh wholesale sales decreased $2.4 million, or 17.7%, to $11.3 million due to timing of shipments, which were heavier in the first quarter.

The Company's mass channel sales, which are comprised of sales of its Child of Mine brand to Walmart and Just One Year brand to Target, decreased 13.4% to $44.2 million due largely to strategic merchandising assortment changes made by Walmart.

In connection with a previously announced workforce reduction and distribution facility closure, the Company recorded pre-tax charges of approximately $2.9 million related to severance and other benefits and accelerated depreciation in the second quarter of fiscal 2009. Also during the second quarter of fiscal 2009, the Company reduced the carrying value of its White House, Tennessee distribution facility held for sale by $0.7 million.

In connection with the retirement of an executive officer, the Company recorded charges of $5.3 million in the second quarter of fiscal 2008.

Operating income in the second quarter of fiscal 2009 was $20.9 million, an increase of $11.7 million, or 126.3%, from $9.3 million in the second quarter of fiscal 2008. Excluding the effect of certain items, which are detailed at the end of this release, adjusted operating income increased $10.0 million, or 68.5%, to $24.5 million from $14.6 million in the second quarter of fiscal 2008, driven largely by growth in earnings from its Carter's retail segment as well as improved performance of its OshKosh retail and wholesale segments.


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Silke Brand-Kirsch
Schlegel und Partner

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Tony Ward
Tony Ward

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

Bani Batra

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

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

July 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

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

Yes No

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

Yes No

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


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



X