Carter's, Inc. (CRI) has reported a 39.42 percent jump in profit for the quarter ended Jul. 04, 2015. The company has earned $36.10 million, or $0.68 a share in the quarter, compared with $25.90 million, or $0.48 a share for the same period last year.
Revenue during the quarter grew 6.74 percent to $612.76 million from $574.06 million in the previous year period. Gross margin for the quarter expanded 14 basis points over the previous year period to 42.90 percent. Total expenses were 89.89 percent of quarterly revenues, down from 91.75 percent for the same period last year. This has led to an improvement of 186 basis points in operating margin to 10.11 percent.
Operating income for the quarter was $61.95 million, compared with $47.35 million in the previous year period.
Operating cash flow declines
Carter's, Inc. has generated cash of $27.13 million from operating activities during the first half, down 18.09 percent or $5.99 million, when compared with the last year period. The company has spent $50.24 million cash to meet investing activities during the first six months as against cash outgo of $61.17 million in the last year period. It has incurred net capital expenditure of $50.24 million on net basis during the first six months, down 17.86 percent or $10.92 million from year ago period.
The company has spent $72.62 million cash to carry out financing activities during the first six months as against cash outgo of $50.53 million in the last year period.
Cash and cash equivalents stood at $244.30 million as on Jul. 04, 2015, up 17.50 percent or $36.38 million from $207.92 million on Jun. 28, 2014.
Working capital increases
Carter's, Inc. has recorded an increase in the working capital over the last year. It stood at $803.79 million as at Jul. 04, 2015, up 11.56 percent or $83.29 million from $720.50 million on Jun. 28, 2014. Current ratio was at 4.62 as on Jul. 04, 2015, up from 4.01 on Jun. 28, 2014.
Cash conversion cycle (CCC) has decreased to 112 days for the quarter from 115 days for the last year period. Days sales outstanding were almost stable at 26 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 117 days for the quarter compared with 125 days for the previous year period. At the same time, days payable outstanding went down to 31 days for the quarter from 37 for the same period last year.
Debt remains almost stable
Long-term debt of Carter's, Inc. remained almost stable for the quarter at $586.30 million, when compared with the last year period. Total debt was 31.03 percent of total assets as on Jul. 04, 2015, compared with 32.39 percent on Jun. 28, 2014. Debt to equity ratio was at 0.73 as on Jul. 04, 2015, down from 0.81 as on Jun. 28, 2014. Interest coverage ratio improved to 8.93 for the quarter from 6.88 for the same period last year.
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