Baby department delivers

In 2007, the number of births in the United States hit a 50-year high, according to infant apparel and baby goods manufacturer Carter’s Inc., which saw sales climb to a record $1.5 billion last year. More babies helped, but so did increased distribution, strong sell through and earlier arrival of product on Target shelves. According to Carter’s, mass channel sales increased 4.6% to $254 million, with most of the increase being driven by the company’s Just One Year brand sold at Target. The gain at Target was offset by a 2.5% sales decline of the Child of Mine brand sold at Walmart.

“The increase in Just One Year sales was driven primarily from new door growth and new floor space, particularly in playwear and baby.  The decrease in Child of Mine sales was due to product performance in certain categories, particularly certain Spring 2008 products and certain fall hanging products,” the company explained in an SEC filing.