• Q1 profit down 17.2% to $34.3m 
  • Sales up 10.3% to $652m
  • International sales increase 15.9%

Carter's delivered "resilient results in a tough quarter," according to one analyst, after the children's wear firm posted a double-digit decline in first-quarter profit despite record sales.

Net income came to US$34.3m for the three months to 29 March, compared to $41.4m in the same period of the previous year. The company said earnings were affected by higher product costs and investments to support its growth strategies.

Sales, however, increased 10.3% to $652m from $591m last year.

In the US, sales of the Carter's and OshKosh B'gosh brands were up 10.5% and 14.8% respectively. International sales increased 15.9%, primarily driven by growth in the company's wholesale businesses.

Changes in foreign currency exchange rates negatively impacted international sales by $4m or 6.5% during the quarter.

Nonetheless chairman and CEO Michael Casey said: "Despite the severe winter weather earlier this year, we continued to see strong demand for our brands and achieved a record level of first quarter sales.

"We believe consumers are responding to the strength and compelling value of our spring product offerings."

FBR Capital Markets analyst Susan Anderson said Carter's reported "resilient results in a tough quarter", adding that comparable store sales have significantly improved in the second quarter.

"Although the first quarter was pressured given adverse weather and the Easter shift, we believe the trend reversed in the second quarter and business likely picked up significantly."