Carter's baby clothes make profit

Carter's Inc., the Atlanta-based seller of baby and children's clothing, increased profit by more than 150 percent and sales by 14.5 percent in the first quarter. Revenue was $409 million, compared to $357.2 million the same quarter a year ago. Profit was $42.8 million, compared to $16.6 million a year ago.

The company said that sales were better than expected at Target and Wal-Mart stores. Carter's also launched its e-commerce site this year, and has done more than $1 million in sales, exceeding expectations, company executives told Wall Street analysts Wednesday morning after releasing earnings.

The company said it plans to build dozens of stores this year and will expand beyond its outlet mall presence into more traditional retail centers.