Sales of children's clothing increased, but the high price of cotton -- coupled with the cost of acquiring a Canadian retailer earlier this year -- meant lower profits at Atlanta-based Carter's.
The company made $34.5 million in the third quarter; it made $49.7 million for the same quarter a year ago, a decrease of 30.6 percent.
In a statement, chairman and CEO Michael D. Casey said the company is "very pleased" with the performance.
"We are encouraged by the improved outlook on product costs and the continued support of our brands," he said.
In the company's Thursday conference call, executive vice president and chief financial officer Richard F. Westenberger said the company's performance exceeded expectations.
He said Carter's saw demand for its products come earlier, as some customers that were expected to take their clothing in the fourth quarter took them in the third, instead. The company's consolidated net sales increased 23.5 percent to $639.6 million.
Carter's also acquired Canadian retailer Bonnie Togs in the quarter. The company plans to continue adding retail stores -- it currently operates 351 -- and enhance its online sales capabilities.
