Carter's forecasts good growth in sales for 2012

26 Apr '12

6 min read

Cash flow from operations in the first quarter of 2012 was $82.4 million, an increase of $73.1 million from the first quarter of 2011, principally due to favorable changes in net working capital.

As result of the Bonnie Togs acquisition in June 2011, the Company realigned its reportable segments. Effective October 1, 2011, the Company's reportable segments include Carter's retail, Carter's wholesale, OshKosh retail, OshKosh wholesale, and international. Results for previous periods have been recast to conform to the realigned segment presentation.

Carter's retail segment sales increased $39.3 million, or 28.5%, to $177.2 million. The increase was driven by incremental sales of $17.8 million from new store openings, incremental sales of $14.1 million from eCommerce sales, and a comparable store sales increase of $8.5 million, or 6.7%. This growth was partially offset by a sales decrease of $1.0 million attributed to store closings. In the first quarter of 2012, the Company opened 16 Carter's retail stores and closed three. As of the end of the first quarter, the Company operated 372 Carter's retail stores in the United States.

Carter's wholesale segment sales grew $7.9 million, or 3.3%, to $249.5 million reflecting increased demand for the Company's Carter's, Child of Mine, and Just One You brands, partially offset by lower off-price sales.

OshKosh retail segment sales increased $4.0 million, or 7.4%, to $58.0 million. The increase reflects incremental sales of $3.5 million from eCommerce sales, a comparable store sales increase of $2.3 million, or 4.7%, and incremental sales of $0.5 million from new store openings. This growth was partially offset by a sales decrease of $2.2 million attributed to store closings. During the first quarter of 2012, the Company closed two OshKosh retail stores. As of the end of the first quarter, the Company operated 168 OshKosh retail stores in the United States.

OshKosh wholesale segment sales increased $0.2 million, or 1.0%, to $20.3 million.

International segment sales increased $31.3 million to $46.7 million, reflecting a benefit from the Bonnie Togs acquisition and higher wholesale sales. In the first quarter of 2012, the Company opened four stores in Canada. As of the end of the first quarter, the Company operated 69 stores in Canada.

For the second quarter of fiscal 2012, the Company expects net sales to increase approximately 20% over the second quarter of fiscal 2011. The Company expects adjusted diluted earnings per share, excluding expenses totaling approximately $2 million related to the Bonnie Togs acquisition and the announced distribution center closure, or other items the Company believes to be nonrepresentative of underlying business performance, to be approximately $0.26 to $0.30, compared to adjusted diluted earnings per share of $0.23 in the second quarter of fiscal 2011.

For fiscal 2012, the Company expects net sales will increase approximately 9% to 11% over fiscal 2011. The Company expects adjusted diluted earnings per share, excluding approximately $4 million to $5 million in expenses related to the Bonnie Togs acquisition, $3 million to $4 million in expenses related to the announced distribution center closure, or other items the Company believes to be nonrepresentative of underlying business performance, to increase approximately 20% to 25% compared to adjusted diluted earnings per share of $2.09 in fiscal 2011.

Carter's, Inc

More Carter's Inc News... More Apparel/Garments News - United States Of America...