Carter’s, Inc. Announces Restatement of Financial Statements

ATLANTA--(BUSINESS WIRE)--Carter’s, Inc. (NYSE: CRI) today announced that it will restate its financial statements for certain prior periods and, as a result, that it does not expect to timely file its quarterly report on Form 10-Q for the period ended October 3, 2009.

“We’ve initiated a dialogue with the SEC and informed them of this review. In addition, we are improving internal controls and management processes to help reduce risks inherent in this component of our business going forward.”

On October 27, 2009, the Company announced that it was conducting a review of its accounting for margin support provided to its wholesale customers. As a result of a disputed amount of margin support with respect to a wholesale customer, management initiated a review of previous margin support payments to this customer. Following a briefing on this issue by management, the Company’s audit committee, with the assistance of outside counsel, began a review of accommodation payments more broadly. This review and related investigation are in process.

As a result of this review, management concluded that the previously issued consolidated financial statements for the fiscal years 2004 through 2008, and the fiscal quarters from September 29, 2007 through July 4, 2009, should be restated. Additional details are included in an 8-K filed by the Company today with the Securities and Exchange Commission.

“We intend to file our restated financial statements and third quarter 10-Q with the SEC as soon as possible following the completion of this review,” said Michael D. Casey, Chairman and Chief Executive Officer. “We’ve initiated a dialogue with the SEC and informed them of this review. In addition, we are improving internal controls and management processes to help reduce risks inherent in this component of our business going forward.”

Carter’s, Inc. is a leading provider of apparel and related products exclusively for babies and young children. The Company owns the Carter’s and OshKosh B’gosh brands, two of the most recognized brands in the marketplace. These brands are sold in more than 260 department store, national chain and specialty store accounts and through more than 400 Company-operated stores. The OshKosh B’gosh brand is also sold in more than 30 countries worldwide. The Company’s Child of Mine and Just One Year brands are available at Walmart and Target, respectively, and its Genuine Kids brand is sold at Target. Carter’s is headquartered in Atlanta, Georgia. Additional information may be found at www.carters.com.