First-quarter profit at children's and baby apparel company Carter's has edged up just 0.5% as costs related to store closures and acquisitions offset a double-digit rise in sales. 

Net income rose to US$32.3m or $0.54 per diluted share, while adjusted profit rose 2.7% to $33.7m.

Consolidated net sales increased 17.6% to $551.7m, with net domestic sales of the company's Carter's brands up 12.4% to $426.7m and OshKosh B'gosh rising 5.7% to $78.3m.

Net international sales to customers outside the United States increased $31.3m to $46.7m, helped by the acquisition of Bonnie Togs.

"We continue to see strong demand for our products in all channels of distribution," said Michael Casey, chairman and CEO.

"The strength of our product offerings and effectiveness of our pricing, marketing, and supply chain initiatives are driving better results. We are forecasting good growth in sales and earnings this year, with more meaningful earnings growth expected in the second half driven by lower product costs."

For the fiscal year the company expects sales to rise by 9-11%, and earnings to come in at up to 25% than the previous year's $2.09 per share.