Carter's Q2 net sales up 11 percent

REPORT_ Carter’s reported its second quarter fiscal 2014 results with consolidated net sales rise of 56.2 million dollars, or

10.9 percent to 574.1 million dollars.

“We exceeded our sales and earnings goals and made good progress with our growth initiatives in the second quarter,” said Michael D. Casey, Chairman and Chief Executive Officer, adding, “We believe consumers are responding to the beauty and compelling value of our product offerings across all channels of distribution.”

Net domestic sales of the company’s Carter’s brands increased 37.6 million dollars, or 9.5 percent, to 433.7 million dollars. Net domestic sales of the Company’s OshKosh B’gosh brand increased 11.4 million dollars, or 16.9 percent, to 79.2 million dollars. Net international sales increased 7.1 million dollars, or 13.1 percent, to 61.2 million dollars. On a constant currency basis, consolidated net sales increased 11.4 percent in the second quarter. Operating income in the second quarter of fiscal 2014 increased 14.6 million dollars, or 44.6 percent, to 47.3 million dollars, compared to 32.7 million dollars in the second quarter of fiscal 2013.

Net income in the second quarter of fiscal 2014 increased 6.2 million dollars, or 31.6 percent, to 25.9 million dollars, or 0.48 dollars per diluted share, compared to 19.7 million dollars, or 0.33 dollars per diluted share, in the second quarter of fiscal 2013.

In the third quarter of fiscal 2014, the company projects net sales to increase approximately 4 percent to 6 percent over the third quarter of fiscal 2013 and adjusted diluted earnings per share to increase approximately 7 percent to 10 percent compared to adjusted diluted earnings per share of 1.12 dollars in the third quarter of fiscal 2013. In fiscal 2014, the company projects net sales to increase approximately 8 percent to 10 percent over fiscal 2013 and adjusted diluted earnings per share to increase approximately 14 percent to 16 percent, up from the company's prior growth estimate of approximately 12 percent to 15 percent, compared to adjusted diluted earnings per share of 3.37 dollars in fiscal 2013.