Cash flow from operations in the first half of fiscal 2012 was $89.9 million compared to cash flow used in operations of $86.3 million in the first half of fiscal 2011. The increase was primarily due to favorable net changes in working capital and increased earnings.
retail segment sales increased $65.7 million, or 23.4%, to $346.5 million, driven by incremental sales of $34.8 million generated by new store openings and $23.6 million from eCommerce sales, and a comparable store sales increase of $9.7 million, or 3.8%. This growth was partially offset by a sales decrease of $2.5 million attributed to store closings. In the first half of fiscal 2012, the Company opened 32
retail stores and closed six.
wholesale segment sales increased $29.8 million, or 7.2%, to $444.0 million, reflecting growth in the Company's
Child of Mine,
Just One You
brands, partially offset by lower off-price channel sales.
OshKosh B’gosh Segments
retail segment sales increased $5.2 million, or 4.7%, to $116.3 million, driven by incremental sales of $6.0 million generated by eCommerce sales, a comparable store sales increase of $2.8 million, or 2.8%, $1.0 million generated by new store openings, partially offset by a sales decrease of $4.7 million attributed to store closings. In the first half of fiscal 2012, the Company opened one
retail store and closed five.
wholesale segment sales decreased $1.7 million, or 4.9%, to $33.1 million.
International segment sales increased $61.4 million to $84.0 million, principally reflecting the contribution of the Company's business in Canada and higher wholesale sales in other countries. In the first half of fiscal 2012, the Company opened eight retail stores in Canada.
2012 Business Outlook
For the third quarter of fiscal 2012, the Company expects net sales to increase in the mid-single digit percentage range over the third quarter of fiscal 2011. The Company expects adjusted diluted earnings per share, excluding expenses totaling approximately $2 million related to the Bonnie Togs acquisition and the previously-announced distribution center closure, or other items the Company believes to be nonrepresentative of underlying business performance, to increase approximately 25% to 30%, compared to adjusted diluted earnings per share of $0.67 in the third quarter of fiscal 2011.