What happened

Shares of Carter's (NYSE:CRI) were up 8.2% as of 1:30 p.m. EDT Thursday after the children's clothing company announced strong second-quarter 2019 results

More specifically, Carter's net sales climbed 5.5% year over year to $734.4 million, translating to a 21% increase in earnings per share to $0.95. By comparison, three months ago Carter's told investors to expect earnings to be roughly flat at $0.79 per share, with revenue growth in the 4% to 6% range.

Little girl in pig tails taking money out of a wallet.


So what

Carter's credited its top-line growth to strength in the United States, where wholesale revenue increased 9.4% to $229.1 million, and retail sales climbed 5.3% to $423.1 million (including 3.8% comparable-sales growth).

Meanwhile, Carter's international sales fell 3% to $82.2 million, due to higher sales in Mexico offset by lower demand elsewhere, as well as the company's decision to transition its China business to a licensing arrangement with a children's apparel retailer in the Middle Kingdom.

Now what

"Given the strength of our product offerings and related marketing strategies, we are expecting good growth in the second half and reaffirming our sales and earnings growth objectives for 2019," added Carter's chairman and CEO Michael Casey.

As a reminder, that full-year guidance calls for 2019 net sales to increase 1% to 2% year over year, and for adjusted earnings per share to rise 4% to 6% from $6.29 in 2018.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.