Children's clothing retailer Carter's, Inc. took market share and plans to open more stores, but said sales at Walmart have flagged and rising materials costs will cause prices to rise.
The Atlanta company that also owns the OshKosh B'gosh brand said it reached a record level of sales and profitability when it reported its fourth-quarter and annual results Wednesday. Carter's made $146.5 million for the year, or $2.50 a share, as compared to $115.6 million, or $2.03 a share, in 2009.
The company's share of the young children's apparel market increased to 14 percent. Carter's opened 30 new stores, and plans to open more than 50 in 2011. It saw Internet sales of nearly $20 million in 2010 after launching the site last year.
But sales at Walmart haven't grown for the past couple years, and was the only business that hasn't, chairman and CEO Michael Casey said in a conference call. He said he expects that to change as the store alters the way it merchandises, making more room for Carter's products on the floor.
Carter's will also make its lines available in Dillard's, and will slowly raise its prices through the year to mitigate the impact of high cotton prices.
The company said winter storms had a significant negative impact on December sales.
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