Children’s apparel brand Carter’s has posted lower sales for the first quarter, but management said the results exceeded earlier expectations.
For the three months to March 30, net sales decreased 4.9 per cent year on year to $661.5 million, reflecting the effects of inflation on families with young children and the late arrival of spring weather contributed to lower demand.
US retail, US wholesale, and international segments saw net sales declines of 5 per cent, 5.7 per cent, and 2.7 per cent, respectively.
Carter’s, the company behind the Carter’s and OshKosh B’gosh brands, says its operating income decreased 2.3 per cent to $55 million, while net income increased $2 million to $38 million.
“We exceeded our sales and earnings objectives in the first quarter,” said chairman and CEO Michael D Casey.
“We continued to see higher and earlier than planned demand from our largest wholesale customers. We believe this demand reflects the leaner inventory positions at many retailers, and their need for our new seasonal product offerings in preparation for the warmer weather ahead.”
For the full year, the company expects net sales to be flat in the range of $2.95 billion to $3 billion, and operating income to record mid-single-digit growth.
