Children's wear retailer Carter's Inc says its third quarter profit was flat with the same period last year, and is warning of a "cautious outlook" for the rest of the year. 

Net income for the third quarter was $34.6m, or $0.58 per share, the Atlanta-based company said yesterday (23 October), compared with $35.0m, or $0.57 per diluted share, last year.
 
Net sales rose 4.8% to $410.9m, with sales of Carter's brands up 5.4% to $320.0m and the OshKosh brand rising 2.8% to $91.0m. Wholesale revenues increased 5.1% to $178.1m.

Mass channel sales, which consist of sales of its Child of Mine brand to Wal-Mart and Just One Year brand to Target, were up 1.9% to $67.6m.

Consolidated retail store sales increased 5.8% to $165.2m, with Carter's total retail store sales up 9.6% to $102.4m million, or rising 4.1% on a same-store basis.

OshKosh retail store sales were flat with last year at $62.8m. Same-store sales fell 5.0%.

The company operates 222 Carter's and 162 OshKosh retail stores.

Fred Rowan, chairman and CEO said the results "were consistent with our expectations," but noted: "We expect the market will continue to be difficult given the macroeconomic concerns impacting consumers."

In the first nine months of fiscal 2007, the company swung to a net loss of $99.2m, or $1.71 per share, from a profit of $59.8m, or $0.98 per diluted share, in the first nine months of fiscal 2006.

Losses include a charge of $7.4m, or $0.08 per share, for the closure of a distribution facility in White House, Tennessee.

Consolidated net sales for the nine-month period rose 5.5% to $1.0bn.