UPDATE 2-Carter's posts second-quarter profit
(Adds analyst comments)
By Dilipp S. Nag
BANGALORE, July 22 (Reuters) - Children's clothing retailer Carter's Inc (CRI.N: Cotización) posted a surprise second-quarter profit, driven by strength in Carter's retail segment.
However, the company, which competes with Children's Place Retail Stores Inc (PLCE.O: Cotización) and Gymboree Corp GYMB.O, said it would continue to take a "cautious" outlook for the year given the uncertainty of the current economic environment.
"Although this quarter was a positive surprise, the retail segment of Carter's probably will not perform as strongly in the second half," Sterne, Agee & Leach Inc analyst Margaret Whitfield said by phone.
The analyst, who has a "buy" rating on the stock, expects the segment sales to be up mid-single digits in the second half, compared with double-digit growth in the second quarter, because of more challenging comparisons.
Carter's retail store sales rose 21.5 percent to $92.7 million, driven by a comparable store sales rise of 17.3 percent.
The Atlanta-based Carter's posted second-quarter net income of $2.8 million, or 5 cents a share, compared with a net loss of $143.4 million, or $2.48 a share, a year earlier.
The company earned 10 cents a share, excluding a charge of $5.3 million related to the retirement of its chief executive, Frederick Rowan. Continuación...