Babies' and children's apparel company Carter's has suffered a decrease in third-quarter profit, hit by charges from its OshKosh B'Gosh acquisition and plant closures.

Third-quarter net income slumped 42.5 per cent to $10.6 million, despite net sales rising 48.1 per cent to $372.2m during the period.

Excluding charges related to the refinancing of Carter's debt, charges related to the acquisition of OshKosh, and plant closure costs, third-quarter net income jumped 68.6 per cent to $31.1m.

Excluding sales from OshKosh, quarterly net sales grew 9.8 per cent to $276.0.

Third-quarter wholesales sales jumped 43.4 per cent to $163.4m, while retail store sales leapt 75.4 per cent to $151.2m.

Mass channel sales increased 12.4 per cent to $57.6m, reflecting sales growth of the Just One Year brand to Target and of the Child of Mine brand to Wal-Mart.

As part of its integration strategy, the company plans to shut 38 under-performing OshKosh retail stores (22 per cent of the 171 stores acquired) by June 2006.

Carter's completed its acquisition of children's clothing and accessories company OshKosh for about $312m in July.