Carter's Online Sales Grow 40 Percent

By Sam Lewis

Children’s apparel company posts huge increases in international and online sales

The third-quarter of 2013 was very friendly to Carter’s as indicated by the earnings statement it released on Friday, Oct 24. The company is the largest branded marketer in the U.S. of apparel and related products for babies and young children, as well as the parent company of OshKosh B’gosh Carter’s is crediting its growth to the company’s namesake brand along with its international business.

As a whole, the company’s net sales increased by nearly 14 percent, jumping up to $760 million for the quarter. Domestic sales for Carter’s brands were reported at nearly $570 million, an increase of 16 percent from the same quarter of 2012. OshKosh B’gosh boasted a slight gain in domestic sales as well, bumping a tenth of a percent from last year, to $106 million.

Carter’s retail segment also saw increases in sales. For the quarter, the retail segment of the company brought in $251 million, marking a 15 percent increase from 2012’s third-quarter. This was driven by new store openings — the company now has 455 total stores, 417 of which are in the U.S. — comparable store sales growth of 0.5 percent, and e-commerce sales growing by more than 50 percent. The OshKosh B’gosh retail division grew by nearly 5 percent, to $82 million in sales. This is a direct reflection of an almost 40 percent increase in e-commerce sales, and growth of 1 percent in comparable store sales.

The company’s international division also saw big gains in sales, up 21 percent to $84 million for the quarter. Carter’s credits its wholesale channel, along with its Canadian retail stores, for the increased sales. Japan’s retail sales were also important for Carter’s good performance in the third-quarter, as this segment was responsible for almost $4 million in sales. “Our growth reflects the strength of our brands and multi-channel business model,” says chairman and CEO Michael Casey. “We believe we are well-positioned with strong product offerings and compelling promotions, and expect to achieve our growth objectives this year.”

Carter’s believes growth will continue in the fourth-quarter, expecting 9 to 10 percent growth from 2012’s fourth-quarter. In addition, it is forecasting earnings per share to increase 10 to 15 percent from a year ago, with full year growth projected in the 15 to 17 percent range.