US: Carter’s cuts jobs, warns of weaker Q2
Children's wear company Carter's is cutting 10% of its workforce and expects a weaker second quarter, despite posting a 41.6% hike in first quarter net profit.
Sales for the owner of the Carter's and OshKosh brands were up 8.1% to US$356.8m.
Carter's revenues were up 6.1% to $283.6m, while OshKosh rose 16.6% to $73.2m.
Retail sales increased 17.6% to $153.8m, boosted by comparable store sales rises of 5.2% and 11.1% for Carter's and OshKosh respectively.
Carter's wholesale revenues were up 4.3% to $122.9m, while OshKosh leapt 15.9% to $21.4m.
However, the company's mass channel sales - consisting of the Child of Mine brand in Wal-Mart and Just One Year in Target - fell 6.6% to $58.7m.
Operating profit was up 39% to $28.6m, while net profit jumped 41.6% to $16.4m - but rose 89.2% on an adjusted basis.
"The trends in our business continue to be favourable, despite a very difficult retail market," said Michael D Casey, Carter's CEO.
Carter's also announced the cutting of 10% of its corporate workforce, plus the closure of the OshKosh facility in Wisconsin and the shuttering of one of its three distribution centres.
The company warned that second quarter sales were expected to be flat to down low single digits, thanks to earlier demand from wholesale and mass channel customers.
Adjusted earnings per share are expected to be down $0.07-0.10.
For the second half, Carter's expects flat net sales due to a reduction in mass channel sales, offsetting growth in other areas. Low single digit percentage growth in EPS is predicted.
Women's apparel chain Cache Inc has posted a third quarter net loss of $6.8m, compared to a net loss of $1.6m in the third quarter of fiscal 2008, after lower than expected sales during the period....
US fashion retailer J Crew Group has raised both its guidance for both the third quarter of fiscal 2009 and its outlook for the fourth quarter....
Rising sales have prompted cut-price retailer The TJX Companies to raise its sales and earnings outlook for the third quarter and full year....
US footwear retailer DSW has estimated same-store sales up 6% to 8% for the third quarter ending 31 October, and raised its earnings outlook for the full-year....
Underlying retail revenue growth of 14% helped luxury goods company Burberry to post a 6% increase in first half revenue to GBP572m (US$915m)....
Wal-Mart de Mexico has booked a 18% jump in quarterly profits on the back of robust sales growth and lower costs....
The following is a general roundup of US apparel and shoe chains' September 2009 sales results. The list will be updated as new results become available....
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