Oct 28, 2010
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Carter's Q3 beats St, sees hit from rising costs

Oct 28, 2010

(Reuters) - Children's clothing company Carter's Inc (CRI.N) posted quarterly results that beat estimates but warned that rising input costs could weigh down operating margin in fiscal 2011 substantially.

Carter's Inc
Carters Childrenswear A/W 2010

The company, which competes with Children's Place Retail Stores Inc (PLCE.O), also said rising costs of raw materials, especially cotton, will hurt earnings in the current quarter and through 2011.

It earned $49.7 million, or 83 cents a share, in the third quarter.

Earlier, Children's Place cut it's third-quarter earnings outlook by a fifth, saying poor demand and a unusually warm weather hit business.

Third-quarter revenue for Carter's came in at $517.9 million, up 7.6 percent over last uear.

Analysts were expecting earnings of 74 cents a share, on revenue of $511.4 million.

Carter's shares have lost some 26 percent of their value since hitting a year-high of $34.23 in April. They closed at $25.46 Wednesday on the New York Stock Exchange.

(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Jarshad Kakkrakandy)

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