OshKosh B'Gosh, Inc. Provides Business Update
10 Diciembre 2003 - 5:51PM
PR Newswire (US)
OshKosh B'Gosh, Inc. Provides Business Update OSHKOSH, Wis., Dec.
10 /PRNewswire-FirstCall/ -- OshKosh B'Gosh, Inc. today provided an
update on recent business developments as well as net sales and
earnings expectations for fiscal 2003. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030409/GOSHALOGO ) Toys 'R'
Us recently announced its decision to close 146 freestanding Kids
'R' Us stores on or before January 31, 2004. Currently, OshKosh
sells into all of the 146 Kids 'R' Us locations that will be
closing, which the Company expects will amount to approximately $12
million of net sales for 2003. Douglas W. Hyde, Chairman, President
and Chief Executive Officer, said, "The decision by Toys 'R' Us to
exit its freestanding kids apparel stores highlights the challenges
of doing business in the children's apparel market today. Despite
the closure of the Kids 'R' Us stores, we will continue to sell
into Babies 'R' Us, where we are currently experiencing solid
sell-through." As a result of significant order cancellations from
Kids 'R' Us along with the challenges impacting the Company's
overall wholesale business, the Company currently anticipates it
will incur an approximate $3.5 million pre-tax inventory related
charge in the fourth quarter of 2003. Additionally, the Company
will be eliminating approximately 50 positions throughout the
Company including 14 at its headquarters in Oshkosh, Wisconsin. In
conjunction with this headcount reduction, along with the recently
announced closing of the Company's Albany, Kentucky facility and
downsizing of its Celina, Tennessee facility, the Company will
incur a charge of approximately $1.0 million in the fourth quarter
of 2003 for severance and other related costs. After the effect of
these charges, the Company now projects diluted earnings per share
for fiscal 2003 to be in the range of $0.58 to $0.64. Mr. Hyde
continued, "Unfortunately, the staff reductions announced today are
necessary to remain competitive and position us for a strong
future. We remain on schedule with our key strategic initiatives --
our Genuine Kids from OshKosh license arrangement with Target
stores and our family lifestyle store concept. With a successful
execution of these initiatives, along with stabilization of our
core wholesale and outlet retail businesses, we are optimistic that
we can return the Company to higher levels of profitability."
OshKosh B'Gosh, Inc. is best known as a premier marketer of quality
children's apparel and accessories, available in over 50 countries
around the world. The Company is headquartered in Oshkosh,
Wisconsin. Statements contained herein that relate to the Company's
future performance including, without limitation, statements with
respect to the Company's anticipated financial position, results of
operations or level of business for 2003 or any other future period
are "forward-looking statements" within the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Such
statements, which are generally indicated by words or phrases such
as "plan," "estimate," "project," "anticipate," "the Company
believes," "management expects," "currently anticipates,"
"intends," and similar phrases 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 should underlying assumptions prove incorrect,
actual results may vary materially from those anticipated,
projected, or estimated. Among the factors that could cause actual
results to materially differ include the level of consumer spending
for apparel, particularly in the children's wear segment, the
impact of deflation on children's wear apparel prices; risks
associated with competition in the marketplace, including the
financial condition of and consolidations, restructurings and other
ownership changes in, the apparel and related products industry and
the retail industry, the introduction of new products or pricing
changes by the Company's competitors, and the Company's ability to
remain competitive with respect to product service and value; risks
associated with the Company's dependence on sales to a limited
number of large department and specialty store customers, including
risks related to customer requirements for vendor margin support,
as well as risks related to extending credit to large customers;
risks associated with possible deterioration in the strength of the
retail industry, including, but not limited to, business conditions
and the economy, natural disasters, and the unanticipated loss of a
major customer; risks related to the failure of Company suppliers
to timely deliver needed raw materials, risks associated with
importing its products using a global transportation matrix and the
Company's ability to correctly balance the level of its commitments
with actual orders; risks associated with terrorist activities as
well as risks associated with foreign operations; risks related to
the Company's ability to defend and protect its trademarks and
other proprietary rights and other risks related to managing
intellectual property issues. In addition, the inability to ship
Company products within agreed time frames due to unanticipated
manufacturing, distribution system or freight carrier delays or the
failure of Company contractors to deliver products within scheduled
timeframes are risk factors in ongoing business. As a part of the
Company's product sourcing strategy, it routinely contracts for
apparel products produced by contractors in Asia, Mexico and
Central America. If financial, political or other related
difficulties were to adversely impact the Company's contractors in
these regions, it could disrupt the supply of product contracted
for by the Company. The forward-looking statements included herein
are only made as of the date of this press release. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
http://www.newscom.com/cgi-bin/prnh/20030409/GOSHALOGODATASOURCE:
OshKosh B'Gosh, Inc. CONTACT: David L. Omachinski, Executive Vice
President, Chief Operating Officer, Chief Financial Officer, of
OshKosh B'Gosh, Inc., +1-920-232-4140; or Investor Relations - Cara
O'Brien or Melissa Myron, both of Financial Dynamics,
+1-212-850-5600, for OshKosh B'Gosh, Inc. Web site:
http://www.oshkoshbgosh.com/
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