Carter's 3Q profit up as overseas business grows
ATLANTA (AP) — Carter's third-quarter net income surged 73 percent as its overseas business grew and the company's costs fell.
The children's clothing company also lifted its forecast for the year on Thursday.
Carter's earned $59.4 million, or 99 cents per share, compared with $34.4 million, or 58 cents per share, in the prior-year period.
Taking out acquisition-related expenses and costs tied to a facility closing, earnings were $1.02 per share.
Analysts expected earnings of 89 cents per share, according to a FactSet poll.
Revenue for the three months ended Sept. 29 climbed 5 percent to $668.7 million from $639.6 million, but missed Wall Street's estimate of $682.6 million.
The company's costs for staffing its stores and selling its products fell 11 percent to $398.6 million, although general expenses rose 27 percent to $185.2 million.
Sales of Carter's brands increased 4 percent in the U.S. Carter's makes up nearly three-quarters of the company's revenue. OshKosh B'gosh brand U.S. sales fell nearly 1 percent. Overseas sales, the company's smallest division by revenue, shot up 17 percent as the company opened new stores in Canada throughout the year.
Going forward, Carter's now expects adjusted profit of $2.77 per share, up from a previous outlook of $2.51 to $2.61 per share. Analysts predict $2.65 per share.
The company predicts revenue will grow 12 percent, up from a prior guidance of 9 to 11 percent. The new outlook implies revenue of $2.37 billion. Analysts expect $2.36 billion.
Carter's has more than 600 company-run stores in the U.S. and Canada, and also sells its brands through other retailers.