Carter’s, Inc. Acquires Skip Hop Holdings, Inc.
- Acquires rapidly growing global lifestyle brand for families with young children
- Complements Carter’s leading market share in young children’s apparel
Skip Hop offers families with young children essential products that are
differentiated from a design and function perspective. Its product
portfolio includes distinctive offerings across multiple categories,
including diaper bags, kid’s backpacks, travel accessories, home gear,
and hardlines for playtime, mealtime, and bathtime. Skip Hop products
are distributed in more than 5,000 doors in
“Skip Hop has built a strong reputation for innovative, essential core
products for families with young children,” said
The acquisition of Skip Hop is expected to be accretive to Carter’s fiscal 2017 adjusted earnings per share, excluding the impact of non-recurring transaction or integration-related expenses.
“We are very excited to join the Carter’s team,” said
The transaction has been structured as an acquisition of all of the
outstanding equity of Skip Hop. The total purchase price is
About Carter’s, Inc.
Carter’s, Inc. is the largest branded marketer in
Cautionary Language
This press release contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 relating to the Company’s future
performance, including, without limitation, statements with respect to
the Company's acquisition of Skip Hop, as well as the Company’s
strategies and future operating results for the Skip Hop business and
the Company. Such statements are based on current expectations only, and
are subject to certain risks, uncertainties, and assumptions. Should one
or more of these risks or uncertainties materialize or not materialize,
or should underlying assumptions prove incorrect, actual results may
vary materially from those anticipated, estimated, or projected. Factors
that could cause actual results to materially differ include: various
risks relating to the Skip Hop business, including the Company's ability
to manage its growth, to develop and grow the Skip Hop business in terms
of revenue and profitability, and its ability to realize any benefits
from Skip Hop; the ability to integrate Skip Hop into the Company with
no substantial adverse effects on Skip Hop’s or the Company's existing
operations, employee relationships, vendor relationships, customer
relationships or financial performance; the acceptance of the Company's
products in the marketplace; changes in consumer preference and fashion
trends; seasonal fluctuations in the children's apparel and accessory
business; negative publicity; the breach of the Company's consumer
databases; increased production costs; deflationary pricing pressures
and customer acceptance of higher selling prices; a continued decrease
in the overall level of consumer spending; the Company's dependence on
its foreign supply sources; failure of its foreign supply sources to
meet the Company's quality standards or regulatory requirements; the
impact of governmental regulations and environmental risks applicable to
the Company's business; the loss of a product sourcing agent; increased
competition in the baby and young children's apparel and accessories
market; the ability of the Company to adequately forecast demand, which
could create significant levels of excess inventory; failure to achieve
sales growth plans, cost savings, and other assumptions that support the
carrying value of the Company's intangible assets; and the ability to
attract and retain key individuals within the organization. Many of
these risks are further described in the most recently filed Annual
Report on Form 10-K and other reports filed with the
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Source: Carter’s, Inc.
Carter’s, Inc.
Sean McHugh, 678-791-7615
Vice President &
Treasurer