This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Carter's, Inc. Reports Fourth Quarter And Fiscal 2012 Results

The Company's near-term priorities for its new operations in Japan include strengthening brand presentation and retail execution, and leveraging its supply chain capabilities to improve product costs and profitability. In 2013, the Company expects this acquisition to generate net sales of approximately $15 million to $17 million and to be approximately $0.10 dilutive to adjusted earnings per share.

2013 Business Outlook

For fiscal 2013, the Company projects net sales will increase approximately 8% to 10% over fiscal 2012. The Company expects adjusted diluted earnings per share, excluding expenses of approximately $32 million to $36 million related to the previously-announced corporate office consolidation, expenses totaling approximately $4 million to $5 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 15% compared to adjusted diluted earnings per share of $2.85 in fiscal 2012.

For the first quarter of fiscal 2013, the Company expects net sales will increase approximately 5% over the first quarter of fiscal 2012. The Company expects adjusted diluted earnings per share, excluding expenses of approximately $8 million to $10 million related to the previously-announced corporate office consolidation, expenses totaling approximately $1 million to $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 20% compared to adjusted diluted earnings per share of $0.56 in the first quarter of fiscal 2012.

Conference Call

The Company will hold a conference call with investors to discuss fourth quarter and fiscal 2012 results and its business outlook on February 27, 2013 at 8:30 a.m. Eastern Time. To participate in the call, please dial 913-312-0644, passcode 7377345. To listen to a live broadcast of the call on the internet, please log on to www.carters.com and select the “Fourth Quarter 2012 Earnings Conference Call” link under the “Investor Relations” tab. Presentation materials for the call can be accessed under the same "Investor Relations" tab by selecting the “Webcasts & Presentations” link under the “News & Events” tab. A replay of the call will be available shortly after the broadcast through March 8, 2013, at 888-203-1112 (U.S. / Canada) or 719-457-0820 (International), passcode 7377345. The replay will also be archived on the Company's website.

About Carter's, Inc.

Carter's, Inc. is the largest branded marketer in the United States of apparel and related products exclusively for babies and young children. The Company owns the Carter's and OshKosh B'gosh brands, two of the most recognized brands in the marketplace. These brands are sold in leading department stores, national chains, and specialty retailers domestically and internationally. They are also sold through more than 600 Company-operated stores in the United States, Canada, and Japan and on-line at www.carters.com and www.oshkoshbgosh.com. The Company's Just One You, Precious Firsts, and Genuine Kids brands are available at Target, and its Child of Mine brand is available at Walmart. Carter's is headquartered in Atlanta, Georgia. Additional information may be found at www.carters.com.

Cautionary Language

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to the Company's future performance, including, without limitation, statements with respect to the Company's anticipated financial results for the first quarter of fiscal 2013 and fiscal year 2013, or any other future period, assessment of the Company's performance and financial position, and drivers of the Company's sales and earnings growth. Such statements are based on current expectations only, and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. Factors that could cause actual results to materially differ include the risks of: losing one or more major customers; the Company's products not being accepted in the marketplace; changes in consumer preference and fashion trends; negative publicity; the Company failing to protect its intellectual property; the breach of the Company's consumer databases; increased production costs; deflationary pricing pressures; decreases in the overall level of consumer spending; disruptions resulting from the Company's dependence on foreign supply sources; the Company's foreign supply sources not meeting the Company's quality standards or regulatory requirements; disruption to the Company's eCommerce business or distribution facilities due to the planned transition or otherwise; disruptions in the Company's supply chain or in-sourcing capabilities resulting from sourcing through a single port or otherwise; the loss of the Company's principal product sourcing agent; increased competition in the baby and young children's apparel market; the Company being unable to identify new retail store locations or negotiate appropriate lease terms for the retail stores; the Company not adequately forecasting demand, which could, among other things, create significant levels of excess inventory; failure to achieve sales growth plans, cost savings, and other assumptions that support the carrying value of the Company's intangible assets; not attracting and retaining key individuals within the organization; failure to implement needed upgrades to the Company's information technology systems; disruptions resulting from the Company's transition of distribution functions to its new Braselton facility; charges related to the consolidation of the company's Shelton, Connecticut-based operations with the company's Atlanta, Georgia-based operations being greater than estimated; the office consolidation not being completed during the expected time frame; the Company not achieving the expected benefits of the office consolidation; being unsuccessful in expanding into international markets and failing to successfully manage legal, regulatory, political and economic risks of international operations, including maintaining compliance with world-wide anti-bribery laws. Many of these risks are further described in the most recently filed Quarterly Report on Form 10-Q and other reports filed with the Securities and Exchange Commission under the headings "Risk Factors" and "Forward-Looking Statements." The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

CARTER’S, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except for share data)

(unaudited)

     
For the

quarters ended

For the fiscal years ended

December 29, 2012

 

December 31, 2011

December 29, 2012

 

December 31, 2011

Net sales $ 689,253 $ 606,629 $ 2,381,734 $ 2,109,734
Cost of goods sold 399,364   399,592   1,443,786   1,417,456  
Gross profit 289,889 207,037 937,948 692,278
Selling, general, and administrative expenses 222,049 161,174 713,211 542,086
Royalty income (10,527 ) (9,182 ) (37,249 ) (37,274 )
Operating income 78,367 55,045 261,986 187,466
Interest expense 1,427 1,878 6,995 7,534
Interest income (98 ) (35 ) (255 ) (386 )
Foreign currency loss (gain) 5   (251 ) (145 ) (570 )
Income before income taxes 77,033 53,453 255,391 180,888
Provision for income taxes 28,341   18,668   94,241   66,872  
Net income $ 48,692   $ 34,785   $ 161,150   $ 114,016  
Basic net income per common share $ 0.82 $ 0.59 $ 2.73 $ 1.96
Diluted net income per common share $ 0.81 $ 0.59 $ 2.69 $ 1.94
 

CARTER’S, INC.

BUSINESS SEGMENT RESULTS

(dollars in thousands)

(unaudited)

     
For the quarters ended   For the fiscal years ended
December 29, 2012   % of Total   December 31, 2011   % of Total December 29, 2012   % of Total   December 31, 2011   % of Total
Net sales:
Carter’s Wholesale $ 261,860 38.0 % $ 236,087 38.9 % $ 981,445 41.2 % $ 939,115 44.5 %
Carter’s Retail (a) 255,145   37.0 % 206,309   34.0 % 818,909   34.4 % 671,590   31.8 %
Total Carter’s 517,005   75.0 % 442,396   72.9 % 1,800,354   75.6 % 1,610,705   76.3 %
OshKosh Retail (a) 88,984 12.9 % 89,322 14.7 % 283,343 11.9 % 280,900 13.3 %
OshKosh Wholesale 18,413   2.7 % 20,640   3.4 % 79,752   3.3 % 81,888   3.9 %
Total OshKosh 107,397   15.6 % 109,962   18.1 % 363,095   15.2 % 362,788   17.2 %
International (b) 64,851   9.4 % 54,271   9.0 % 218,285   9.2 % 136,241   6.5 %
Total net sales $ 689,253   100.0 % $ 606,629   100.0 % $ 2,381,734   100.0 % $ 2,109,734   100.0 %
 
Operating income (loss): % of segment net sales % of segment net sales % of segment net sales % of segment net sales
Carter’s Wholesale $ 43,550 16.6 % $ 28,684 12.1 % $ 172,673 17.6 % $ 117,897 12.6 %
Carter’s Retail (a) 52,401   20.5 % 33,672   16.3 % 145,940   17.8 % 105,818   15.8 %
Total Carter’s 95,951   18.6 % 62,356   14.1 % 318,613   17.7 % 223,715   13.9 %
OshKosh Retail (a) 5,533 6.2 % (230 ) (0.3 )% (7,752 ) (2.7 )% (9,658 ) (3.4 )%
OshKosh Wholesale 955   5.2 % (646 ) (3.1 )% 4,086   5.1 % 822   1.0 %
Total OshKosh 6,488   6.0 % (876 ) (0.8 )% (3,666 ) (1.0 )% (8,836 ) (2.4 )%
International (b) (c) 14,391   22.2 % 10,754   19.8 % 43,376   19.9 % 27,273   20.0 %
Total segment operating income 116,830 17.0 % 72,234 11.9 % 358,323 15.0 % 242,152 11.5 %
Corporate expenses (d) (e) (f) (38,463 ) (5.6 )% (17,189 ) (2.8 )% (96,337 ) (4.0 )% (54,686 ) (2.6 )%
Total operating income $ 78,367   11.4 % $ 55,045   9.1 % $ 261,986   11.0 % $ 187,466   8.9 %
 

(a) Includes eCommerce results.

5 of 9

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs