Carter’s stock price plunged nearly 25 percent on Tuesday after the company said third-quarter earnings results would be delayed pending an accounting review.
The Atlanta-based child's apparel maker had planned to announce earnings after markets closed on Tuesday. In a news release Tuesday morning, the company said the accounting matter “arose late” as Carter’s prepared its earnings release.
The company said the issue had to do with its accounting regarding wholesale customers. Carter’s plans to issue its earnings on Nov. 12.
A call to the company for comment was not returned.
Traders punished the company’s stock, sending shares down 32 percent in the opening minutes of trading. The stock closed down 24 percent at $21.56 per share.
Analysts have been expecting strong third-quarter results from Carter's, projecting earnings of 66 cents per share. The company's revenues for the first half of the year were up slightly compared to a year earlier.
Carters makes baby and children’s clothes under its own name as well as OshKosh B’Gosh, and sells apparel under the Child of Mine brand at Walmart and Tykes at Target. Last year, the company logged a profit of $75 million on revenues of $1.49 billion. It employs 2,675 people.
Over the past year, the company’s stock has ranged from a high of $29.49 in July and a low of $13.86 in February.
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