Largest branded marketer of apparel for babies and young children in the United States, Carter's Inc reported its third quarter results for fiscal 2005.
As noted in their press release dated July 14, 2005, Carter's Inc acquired all of the outstanding common stock of OshKosh B'Gosh Inc ('OshKosh' and together with Carter's, the 'Company') for a purchase price of $312.1 million. As part of financing the acquisition, the Company refinanced its existing debt, including its former senior credit facility, and repurchased all of its 10.875 percent Senior Subordinated Notes ('Notes').
Financing for the acquisition and refinancing was provided by a new senior credit facility, which includes a $500 million term loan and $125 million revolving credit facility. Results for the third quarter of 2005 include OshKosh results for the period from July 14, 2005 through October 1, 2005, whereas the results for the third quarter of 2004 reflect Carter's results on a stand-alone basis.
Third Quarter 2005 Compared to Third Quarter 2004
Net sales increased 48.1 percent to $372.2 million. This increase reflects growth in all channels of distribution and includes $96.1 million in net sales from OshKosh. Excluding OshKosh, net sales increased 9.8 percent to $276.0 million.
The Company's wholesale sales increased 43.4 percent to $163.4 million. Excluding OshKosh wholesale sales of $32.6 million, wholesale sales increased 14.8 percent to $130.8 million. Mass channel sales increased 12.4 percent to $57.6 million. This increase reflects growth in sales of their Just One Year brand to Target and sales of their Child of Mine brand to Wal-Mart.
marketing@alchempro.com
