Carter's Reports Rise In 1Q Profit, Job Cuts

To cut costs, Carter's said it is also freezing wages and suspending its matching contribution to its 401(k) plan.

Annual savings from the cuts are expected to be about $10 million. The company said it will incur about $2 million in additional severance-related costs in the second quarter and $4 million for recruiting, relocation and retention costs through the rest of 2009.

Carter's said it expects second quarter adjusted profit to be down 7 cents to 10 cents per share compared with the second quarter last year. The company's adjusted profit in last year's second quarter was 13 cents per share.

Shares fell $1.20, or 5.2 percent, to $22 in electronic after-hours trading. During the regular session, shares rose $1, or 4.5 percent, to close at $23.20.