ATLANTA — April 6, 2020 — Carter’s Inc., the largest branded marketer in North America of apparel exclusively for babies and young children, today provided an update on actions it is taking to address the COVID-19 outbreak.
“In recent weeks, Carter’s has taken several steps to help address the significant impact of the global pandemic on its customers, employees, and business partners,” said Michael D. Casey, chairman and CEO. “With the safety of our customers and employees in mind, we have extended the temporary closure of our stores in North America and will reopen them when it is clearly safe to do so. We have strengthened our financial position by reducing inventory receipts, extending payment terms with suppliers and vendors, and implementing thoughtful and necessary cost reductions. With the support of our customers, employees, and business partners, we believe Carter’s will be well-positioned to recover from the significant effects of this health crisis on our business.”
Building on actions previously announced on March 26, 2020, the Company has taken the following steps to address the disruption related to COVID-19:
- With the extended period for temporary store closures, all store employees were furloughed on April 3, 2020. Compensation payments to the company’s store employees will resume when its stores reopen and they are able to return to work; employee benefits will continue during the furlough.
- To support consumer demand for its brands in North America, the company continues to make its brands available 24/7 online at www.carters.com, www.oshkosh.com, www.skiphop.com, www.cartersoshkosh.ca, and www.carters.com.mx. The company’s distribution centers continue to operate and fulfill online demand from consumers and its wholesale customers.
- The company has provided compensation incentives and implemented workplace safety and health monitoring protocols to support the health and well-being of its distribution center employees.
In response to lower sales related to the global pandemic and extended payment terms by its wholesale customers, the company has taken the following steps to strengthen its financial position, including:
- cancellation and significant reduction of inventory commitments;
- extension of payment terms with suppliers, vendors, and landlords;
- reduction in planned capital expenditures;
- temporary salary reductions;
- furlough and reductions of office-based employees;
- suspension of merit increases, incentive compensation, and 401(k) matching contributions; and
- reduction of other variable and discretionary expenses.
The company is pursuing additional opportunities to further improve its cost structure and financial flexibility in this challenging environment. As additional actions are taken, the company intends to update stakeholders from time to time as events warrant.
Posted April 6, 2020
Source: Carter’s Inc.