Carter's, Inc. (CRI) has reported an 1.87 percent rise in profit for the quarter ended Oct. 01, 2016. The company has earned $80.81 million, or $1.60 a share in the quarter, compared with $79.33 million, or $1.51 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $81.10 million, or $1.61 a share compared with $79.90 million or $1.52 a share, a year ago. Revenue during the quarter grew 6.07 percent to $901.42 million from $849.81 million in the previous year period. Gross margin for the quarter expanded 77 basis points over the previous year period to 41.66 percent. Total expenses were 85.48 percent of quarterly revenues, up from 84.68 percent for the same period last year. That has resulted in a contraction of 80 basis points in operating margin to 14.52 percent.
Operating income for the quarter was $130.89 million, compared with $130.22 million in the previous year period.
However, the adjusted operating income for the quarter was almost stable at $131.40 million when compared with the prior year period. At the same time, adjusted operating margin contracted 86 basis points in the quarter to 14.58 percent from 15.44 percent in the last year period.
"In the third quarter, we achieved a record level of sales and earnings with sales growth in all channels of distribution," said Michael D. Casey, chairman and chief executive officer. "Our performance in the quarter reflects significant growth in online sales and higher demand from international customers. Given the current trends in our business, we expect to achieve our growth objectives this year and 28th consecutive year of sales growth."
For the fiscal year 2016, Carter's, Inc. forecasts revenue to grow in the range of 5 percent to 6 percent.
For the fourth-quarter 2016, On an adjusted basis, the company expects diluted earnings per share to be in the range of $1.65 to $1.70.
Operating cash flow declines
Carter's, Inc. has generated cash of $116.57 million from operating activities during the nine month period, down 20.17 percent or $29.46 million, when compared with the last year period. The company has spent $70.97 million cash to meet investing activities during the nine month period as against cash outgo of $76.92 million in the last year period. It has incurred net capital expenditure of $70.97 million on net basis during the nine month period, down 7.73 percent or $5.95 million from year ago period.
The company has spent $287.41 million cash to carry out financing activities during the nine month period as against cash outgo of $120.54 million in the last year period.
Cash and cash equivalents stood at $140.63 million as on Oct. 01, 2016, down 51.22 percent or $147.63 million from $288.26 million on Oct. 03, 2015.
Debt remains almost stable
Total debt of Carter's, Inc. remained almost stable for the quarter at $580.61 million, when compared with the last year period. Long-term debt of Carters remained almost stable for the quarter at $580.61 million, when compared with the last year period. Total debt was 29.96 percent of total assets as on Oct. 01, 2016, compared with 29.15 percent on Oct. 03, 2015. Debt to equity ratio was at 0.75 as on Oct. 01, 2016, up from 0.69 as on Oct. 03, 2015. Interest coverage ratio improved to 19.31 for the quarter from 18.85 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
