Children’s apparel retailer Carter’s has posted sales growth for the second quarter, driven by strong performance in the US.

The company’s net sales rose 5.2 per cent to $615.5 million during the quarter ended July 4.

US retail sales grew 1.7 per cent on a reported basis and 5.1 per cent on a comparable basis, while US wholesale sales soared 11.7 per cent. International sales improved 2.7 per cent.

Operating income rose from $4 million a year ago to $139.8 million, driven by a recovery of previously paid import duties and benefits from productivity and supply chain initiatives. These were partially offset by net incremental tariff costs, investments in demand creation, inflationary cost pressure, and costs related to leadership transition.  

Net income also rose from  $400,000 last year to $105.0 million.

The company recently appointed Sharon Price John, former boss at Build-A-Bear Workshop, as CEO and president, effective June 15. 

“While there were a number of moving parts in the quarter, we believe these results are largely reflective of improved marketing efforts, the early benefit of productivity initiatives, and continued progress in the critical Baby segment,” said John. 

For the full year, Carter’s expects net sales to grow approximately 2-3 per cent, and operating income to increase by a low single-digit to mid-single-digit percentage.