Children's shoes manufacturer The Stride Rite Corporation has reported record first quarter fiscal 2007 sales of $194.7m, an increase of 6% compared to the same period in the prior year.

Net income for the first quarter totalled $11.1m, compared to the net income of $8.3m in the first quarter of 2006.

David Chamberlain, chairman and CEO of Stride Rite said, "Although we made progress in the first quarter, the uneven retail environment had an effect on the first quarter results."

The company's combined Children's Group first quarter sales increased 9% compared to last year. The Children's Retail Group sales went up 14% in the quarter, while same-store sales were up 6.3%.

"We expect retail to continue with positive comps for the year. However, wholesale sales were down 1%. The introduction of our Saucony children's line in December has enjoyed a solid start in both our stores and wholesale businesses. Over time, this should allow us to open new distribution. We remain on target to turn in another year of growth in our Stride Rite children's business," Chamberlain added.