Carter's Q3 Profit Up, Adj. EPS Beats Estimates; Backs 2014 Outlook

(RTTNews) - Carter's Inc. (CRI) reported that its net income for the third quarter of fiscal 2014 increased to $65.9 million, or $1.23 per share, from $56.6 million, or $0.97 per share, in the third quarter of fiscal 2013.

Excluding certain items, adjusted net income in the third quarter of fiscal 2014 increased 4.5%, to $67.9 million, compared to $65.0 million in the third quarter of fiscal 2013. Adjusted earnings per share rose 13.6% to $1.27, compared to $1.12 in the third quarter of fiscal 2013.

Consolidated net sales increased 5.1% to $798.94 million from $760.17 million last year. Net domestic sales of the Company's Carter's brands increased $21.6 million, or 3.8%, to $591.2 million. On a constant currency basis, consolidated net sales increased 5.5% in the third quarter.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.24 per share and revenues of $811.18 million for the quarter. Analysts' estimates typically exclude special items.

In the fourth quarter of fiscal 2014, the Company projects net sales to increase approximately 10% to 12% over the fourth quarter of fiscal 2013 and adjusted earnings per share to increase approximately 20% to 25% compared to adjusted earnings per share of $1.02 in the fourth quarter of fiscal 2013. Analysts expect the company to report earnings of $1.32 per share and revenues of $859.50 million for the fourth-quarter.

In fiscal 2014, the company still projects net sales to increase approximately 8% to 10% over fiscal 2013 and adjusted earnings per share to increase approximately 14% to 16% compared to adjusted earnings per share of $3.37 in fiscal 2013. Wall Street currently is looking for fiscal year 2014 earnings of $3.91 per share on annual revenues of $2.89 billion.