Carter’s, Inc. Announces Actions Taken to Address COVID-19 Outbreak
“Carter’s is taking steps to address the challenges related to the current global health crisis,” said
In light of the uncertainty and disruption related to COVID-19, the Company has taken the following actions:
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For the safety of customers and employees, the Company suspended store operations in
the United States andCanada beginning onMarch 19, 2020 . To support thousands of dedicated store employees affected by this decision, the Company plans to continue their compensation and benefits through early April. Legislation pending inthe United States and recently enacted inCanada is expected to provide additional assistance to the Company’s employees if store openings are delayed beyond early April due to continued concerns about their safety. The Company expects to reopen its stores as local conditions permit. - To support consumer demand, the Company will continue to make its brands available 24/7 online at www.carters.com, www.oshkosh.com, or www.skiphop.com. The Company’s distribution centers continue to operate and fulfill online demand from consumers and its wholesale customers.
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The Company is withdrawing financial guidance provided on
February 24, 2020 for the first quarter of fiscal 2020 and fiscal year 2020. -
To improve near-term liquidity, the Company has drawn substantially all of the
$750 million available under its revolving credit facility. - To create additional financial flexibility, the Company is reducing costs, inventory commitments, and capital expenditures. With respect to return of capital initiatives, the Company has suspended its share repurchase program and its Board of Directors will evaluate future dividend declarations based on a number of factors, including business conditions, the Company’s financial performance, and other considerations.
The Company expects to issue first quarter fiscal 2020 results and provide a business update at the end of April.
About Carter’s, Inc.
Carter’s, Inc. is the largest branded marketer in
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws relating to our future performance, including statements with respect to planned store closures and cost cutting strategies. 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. Certain of the risks and uncertainties that could cause actual results and performance to differ materially are described in the Company’s most recently filed Annual Report on Form 10-K and other reports filed with the
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Source: Carter’s, Inc.