Q3FY16 net soars 20.4% at baby apparel marketer Carter's
Net income soared 20.4 per cent over a year ago period for the three months to October 3, 2015 at Carter's, a marketer of apparel for babies and young children.
A Carter's press release stated that net income in the third quarter of fiscal 2016 surged to $79.3 million or $1.51 per diluted share compared to $65.9 million or $1.23 per diluted share, in the third quarter of 2014.
Adjusted net income in the reporting quarter rose to $79.9 million or $1.52 per diluted share as against $67.9 million or $1.27 per diluted share in the third quarter of prior fiscal.
Net sales increased $50.9 million or 6.4 per cent year on year to $849.8 million, principally driven by growth in the Carter's wholesale and US Carter's and OshKosh direct-to-consumer businesses.
Changes in foreign currency exchange rates negatively impacted consolidated net sales in the third quarter of fiscal 2016 by $12.7 million, or 1.6 per cent.
However, on a constant currency basis, consolidated net sales increased 8.0 per cent over the same period of earlier fiscal in the third quarter of fiscal 2016.
Operating income in the quarter under review grew $19.8 million or 17.9 per cent to $130.2 million, vis-à-vis $110.5 million in the third quarter of fiscal 2015.
While, operating margin increased 150 basis points to 15.3 per cent compared to 13.8 per cent in the comparable period of previous fiscal.
Adjusted operating income rose $17.7 million or 15.6 per cent year over year to $131.2 million and adjusted operating margin drove up 120 basis points over the third quarter of last fiscal to 15.4 per cent.
During the third quarter of fiscal 2016, the Company paid a cash dividend of $0.22 per share totaling $11.5 million and paid cash dividends amounting to $34.6 million in the first three quarters.
During the quarter under review, the Company repurchased and retired 290,800 shares of its common stock for $29.4 million at an average price of $101.26 per share.
In the first three quarters of fiscal 2016, the Company repurchased and retired 795,025 shares for $78.3 million at an average price of $98.54 per share.
As of October 28, 2015, the total remaining capacity under the Company's previously-announced repurchase authorisations was $97 million.
In the first three quarters of fiscal 2015, the Company returned a total of $113.0 million to shareholders through dividends and share repurchases.
“We continued to outperform the market, with good growth in sales and earnings in the third quarter,” chief executive officer Michael Casey said.
“The strength of our brands, broad market distribution, and expense discipline enabled us to achieve our profit objectives and mitigate the effects of foreign currency fluctuations,” he added.
“Given the progress with our growth initiatives this year and current business trends, we are reaffirming our profit objectives for full fiscal 2015,” Casey informed. (AR)
Fibre2Fashion News Desk – India