US: Carter's Q4 profit down on acquisition costs
- Fourth-quarter net income down 0.3% to $34.5m
- Sales up 22.5% to $606.6m
- Full-year net income down 22.2% to $114m
- Sales up 20.6% to $360.5m
Children's wear company Carters saw fourth-quarter profits slip as higher cotton prices and acquisition expenses offset rising sales.
The company announced yesterday (29 February) that net income fell 0.3% to US$34.5m over the quarter ended 31 December. Excluding costs relating to the acquisition of Bonnie Togs, net income rose 6.8% to $37.3m. Operating profit was down 6.4% to $55m. Excluding the acquisition costs, it fell 1.3% to $58m, which it attributed to higher product costs.
Sales at the company, which owns the OshKosh B'Gosh brand increased 22.5% to $606.6m. Net domestic sales of the company's Carter's brands were up 14.1% to $442.4m, while OshKosh B'gosh sales rose 10.6% to $110m. International sales shot up to $54.3m from $8m.
Full-year net income fell 22.2% to $114m. Excluding acquisition costs, net income was down 15.9% to $123.2m. Sales increased 20.6% to $2.1m. Domestic sales of the Carter's brands increased 17.2% to $1.6bn, while OshKosh B'Gosh saw a 6.6% rise to reach $362.8m International sales rose by $101.4m to $136.2m.
"For the year, we achieved a record level of sales by extending the reach of our brands in the United States and international markets. Earnings continue to be impacted by abnormally high cotton prices. We expect to see the benefit of lower cotton prices in the second half of 2012, and we are forecasting good growth in sales and profitability this year," said chairman and CEO Michael Casey.
US children's apparel specialist Carter's saw its second quarter net profit jump on the back of increased international sales....
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