Carter's 3rd-quarter profit down nearly 5 percent
(Associated Press Via Acquire Media NewsEdge) NEWS: Carter's Inc. , the nation's largest branded marketer of clothing for babies and young children, posted a 4.7 percent drop in net income in the third quarter as results were dragged down by expenses related to its office consolidation and other moves. The company offered an outlook that was below analysts' expectations.
DETAILS: Carter's saw sales increases in both its domestic and international business. The revenue increases were driven by new store openings and incremental sales gains. During the quarter, the Atlanta company opened 17 Carter's retail stores in the U.S, ending the period with 455 stores.
NUMBERS: The children's wear maker said that it earned net income of $56.6 million, or 97 cents per share, in the three months ended Sept. 28. That compares with $59.4 million, or 99 cents per share, last year. Revenue rose 14 percent to $760.2 million.
Excluding the expenses related to moves related to the office consolidation and the amortization of trade names related to the acquisitions of Carter's Watch the Wear and H.W. Carter & Sons, the company posted earnings per share of $1.12. Analysts were expecting $1.08 per share on revenue of $747.7 million
FUTURE: For the current quarter, Carter's expects net sales to be up 9 percent to 10 percent from last year's $689 million. That means that revenue is expected to be anywhere from $751.01 to $757.9 million. The company expects fourth-quarter earnings per share to be up 10 percent to 15 percent from last year's 89 cents. That implies a range of 98 cents to $1.02.
Analysts expect $1.06 per share on revenue of $768.8 million, according to FactSet.
For the year, Carter's projects net sales growth of 10 percent from the year-ago's $2.4 billion. That would put revenue at $2.64 billion. It also expects earnings per share to be up 15 percent to 17 percent from $2.85 per share in 2012. That would mean a range of $3.27 to $3.33 per share.
Analysts expect $3.38 per share on revenue of $2.63 billion, on average.
STOCK: Carter's shares fell more than 7 percent, or $5.71, to $68.97 in afternoon trading. Over the past 52 weeks, the stock has traded between $49.61 and $77.79.
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