Carter’s to restate some financials due to discrepancies in reporting customer arrangements
By APWednesday, December 23, 2009
Carter’s to restate some of its financials
ATLANTA — Children’s apparel maker Carter’s Inc. said Wednesday that an independent investigation has determined that the company must restate some of its financials.
The investigation found that Carter’s sales staff did not disclose certain customer arrangements and provided inaccurate documents and explanations to Carter’s finance team.
The adjustments will lower Carter’s retained earnings for 2004 through 2008 and the first six months of fiscal 2009 by $7.5 million.
Carter’s, whose brands include its namesake and OshKosh B’gosh, said it has worked to address the problems, which includes getting rid of certain employees. While it has given information to the Securities and Exchange Commission regarding the matter, Carter’s said the U.S. Attorney’s Office is also looking into it and that the company will continue to cooperate with all inquiries.
The company anticipates completing the restatements and reporting its third-quarter results as soon as possible.
Separately, Carter’s reported that CEO Michael D. Casey would take on the additional role of president, replacing Joseph Pacifico, who left Carter’s on Monday.
Shares of Carter’s added $1.01, or 4 percent, to $26 in afternoon trading. Over the past year, the stock has traded between $13.86 and $29.49.
