Carter's net sales witness a 6.1 percent increase in FY16

Carter’s fourth quarter consolidated net sales increased 67.7 million dollars or 7.8 percent to 934.2 million dollars. Consolidated net sales for the whole year increased 185.3 million dollars or 6.1 percent, to 3.2 billion dollars. This increase, the company said, reflects sales growth in nearly every business segment.

“The fourth quarter represented a strong finish to another record year of sales and profitability for Carter’s,” said Michael D. Casey, Chairman and Chief Executive Officer in a statement, adding, “Our focus on providing the best value and experience in young children's apparel, extending the reach of our brands, and improving profitability enabled us to achieve our 28th consecutive year of sales growth, improve our profit margins, and increase the return of capital to shareholders.”

Fourth quarter result highlights

The company said, changes in foreign currency exchange rates in the fourth quarter negatively affected consolidated net sales by 0.4 million dollars. On a constant currency basis, consolidated net sales increased 7.9 percent.

Net income increased 14.5 million dollars or 20 percent to 87.1 million dollars or 1.76 dollars per diluted share, compared to 72.6 million dollars or 1.39 dollars per diluted share, in the fourth quarter of fiscal 2015. Adjusted net income increased 15.5 million dollars or 21.2 percent, to 88.7 million dollars compared to 73.2 million dollars in the fourth quarter of fiscal 2015. Adjusted earnings per diluted share increased 27.9 percent to 1.79 dollars compared to 1.40 dollars in the fourth quarter of fiscal 2015.

Summary of fiscal 2016 results

Carter’s said, changes in foreign currency exchange rates in fiscal 2016 compared to fiscal 2015 negatively affected consolidated net sales by 7.1 million dollars. On a constant currency basis, consolidated net sales increased 6.4 percent in fiscal 2016.

Net income increased 20.3 million dollars or 8.5 percent to 258.1 million dollars or 5.08 dollars per diluted share, compared to 237.8 million dollars or 4.50 dollars per diluted share, in fiscal 2015. Adjusted net income increased 17.5 million dollars or 7.2 percent to 261.1 million dollars, compared to 243.6 million dollars in fiscal 2015. Adjusted earnings per diluted share increased 11.5 percent to 5.14 dollars compared to 4.61 dollars in fiscal 2015.

Sales performance of the retail channels

Fourth quarter retail segment sales increased 41.7 million dollars or 11.8 percent to 393.3 million dollars. Carter’s retail comparable sales increased 5.4 percent, comprised of ecommerce comparable sales growth of 21.7 percent and a comparable retail store sales increase of 0.1 percent. As of the end of the fourth quarter, the company operated 654 Carter’s retail stores in the United States, comprised of 495 stand-alone and 159 dual-branded locations.

Retail segment sales for the year increased 102.9 million dollars or 8.9 percent to 1.3 billion dollars. Carter’s retail comparable sales increased 3.1 percent, comprised of ecommerce comparable sales growth of 20.4 percent and a comparable retail store sales decline of 1.7 percent.

Fourth quarter wholesale segment sales increased 3.1 million dollars or 1.1 percent to 286.2 million dollars, reflecting increased fall product shipments, offset in part by lower spring 2017 product shipments. Fiscal 2016 wholesale segment sales increased 20.7 million dollars or 1.9 percent to 1.1 billion dollars.

OshKosh retail segment sales for the fourth quarter increased 16.3 million dollars or 13.7 percent to 134.6 million dollars. OshKosh retail comparable sales increased 5.8 percent, comprised of ecommerce comparable sales growth of 25.9 percent and a comparable retail stores decline of 0.6 percent. As of the end of the fourth quarter, the company operated 297 OshKosh retail stores in the United States, comprised of 138 stand-alone and 159 dual-branded locations.

Fiscal 2016 OshKosh retail segment sales increased 39.2 million dollars or 10.8 percent to 402.3 million dollars. OshKosh retail comparable sales increased 3.3 percent, comprised of ecommerce comparable sales growth of 25.3 percent and a comparable retail store sales decline of 2.6 percent.

Fourth quarter OshKosh wholesale segment sales decreased 5.6 million dollars or 33.8 percent to 10.9 million dollars, due to lower demand. Wholesale segment sales for the year, decreased 15.9 million dollars or 24.3 percent to 49.7 million dollars, due to lower demand and a decrease in the average price per unit.

International segment sales for the quarter increased 12.2 million dollars or 12.6 percent to 109.2 million dollars, principally driven by growth in the company's retail and wholesale businesses in Canada and China, offset in part by a decrease in wholesale demand in other international markets. The company's Canadian retail comparable sales increased 10.9 percent in the fourth quarter, reflecting retail stores comparable sales growth of 6.9 percent and ecommerce comparable sales growth of 61.1 percent. As of the end of the fourth quarter of fiscal 2016, the company operated 164 retail stores in Canada.

International segment sales for the year increased 38.5 million dollars or 11.8 percent to 364.7 million dollars. Compared to fiscal 2015, the company's Canadian retail comparable sales increased 8.4percent in fiscal 2016, primarily due to retail stores sales growth of 5.9 percent and ecommerce sales growth of 46.4 percent.

Releases outlook and issues 12 percent rise in dividend

On February 15, 2017, the company's Board of Directors authorized a 12 percent increase (0.04 dollar per share) to its quarterly cash dividend, to 0.37 dollar per share, for payment on March 24, 2017, to shareholders of record at the close of business on March 10, 2017.

For fiscal 2017, the company projects net sales to increase approximately 4 percent to 6 percent over fiscal 2016 and adjusted diluted earnings per share to increase approximately 8 percent to 10 percent compared to adjusted diluted earnings per share of 5.14 dollars in fiscal 2016.

For the first quarter, the company projects net sales to decline in the low-single digit range compared to the first quarter of fiscal 2016 and adjusted diluted earnings per share to be approximately 0.80 dollar to 0.85 dollar compared to adjusted diluted earnings per share of 1.05 dollars in the first quarter of fiscal 2016.

Picture:Facebook/OshKosh B'gosh