Carter's expects 2Q profit to drop on slower sales

Children's-clothes maker Carter's Inc. said Tuesday its profit in the second quarter will be hurt by sliding sales.

Carter's said it expects second-quarter adjusted profit to be down 7 cents to 10 cents per share compared with the second quarter last year. The company's adjusted profit in last year's second quarter was 13 cents per share.

Those numbers exclude charges related to special items, such as asset impairment charges and costs for closing facilities.

Analysts polled by Thomson Financial expect profit of 10 cents per share. Analyst estimates typically exclude one-time costs.

The company said it expects revenue to be flat to down low single digits in the quarter, saying that earlier demand by wholesale and mass channel customers helped its first quarter sales.

The company said its first quarter profit jumped 42 percent. Carter's also said it is laying off about 10 percent of its corporate work force and closing both its Oshkosh, Wis., facility and one distribution center.

The company is also freezing wages and suspending its matching contribution to its 401(k) plan.

Shares fell $1.20, or 5.2 percent, to $22 in electronic after-hours trading. During the regular session, shares rose $1, or 4.5 percent, to close at $23.20.