Carter’s, Inc., the largest branded marketer in the United States of apparel exclusively for babies and young children, reported its second quarter fiscal 2014 results.
Highlights:
-Net Sales $574 Million, Up 11%
-Total U.S. Direct-to-Consumer Sales: Carter's +17%, OshKosh +20%
-EPS $0.48, Up 46%; Adjusted EPS $0.61, Up 33%
-Company Raises Earnings Guidance For Fiscal 2014
“We exceeded our sales and earnings goals, and made good progress with our growth initiatives in the second quarter,” said Michael D. Casey, Chairman and Chief Executive Officer. “We believe consumers are responding to the beauty and compelling value of our product offerings across all channels of distribution. We are very pleased with our first half performance and expect to achieve our sales and earnings objectives this year.”
Second Quarter of Fiscal 2014 compared to Second Quarter of Fiscal 2013
Consolidated net sales increased $56.2 million, or 10.9%, to $574.1 million. Net domestic sales of the Company’s Carter’s brands increased $37.6 million, or 9.5%, to $433.7 million. Net domestic sales of the Company’s OshKosh B’gosh brand increased $11.4 million, or 16.9%, to $79.2 million.
Net international sales increased $7.1 million, or 13.1%, to $61.2 million. Changes in foreign currency exchange rates in the second quarter of fiscal 2014 as compared to the second quarter of fiscal 2013 negatively impacted consolidated net sales in the second quarter of fiscal 2014 by $2.9 million. On a constant currency basis, consolidated net sales increased 11.4% in the second quarter.
Operating income in the second quarter of fiscal 2014 increased $14.6 million, or 44.6%, to $47.3 million, compared to $32.7 million in the second quarter of fiscal 2013.
Second quarter fiscal 2014 operating income includes expenses totaling $11.5 million related to the following: the amortization of acquired tradenames; the corporate office consolidation; the exit of retail operations in Japan; and the Hogansville, Georgia distribution center closure. Second quarter fiscal 2013 operating income included expenses totaling $12.1 million related to the following: the corporate office consolidation; the amortization of acquired tradenames; and the revaluation of the Bonnie Togs contingent consideration.
Excluding the expenses noted above in both periods, adjusted operating income in the second quarter of fiscal 2014 increased $14.0 million, or 31.1%, to $58.8 million, compared to $44.9 million in the second quarter of fiscal 2013. The increase in adjusted operating income reflects sales growth and expense leverage that were partially offset by higher productcosts.
Source:
http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=166245
