ATLANTA (AP) ¿ Children's apparel maker Carter's Inc. said Wednesday that an independent investigation has determined that the company must restate some of its financials. The investigation found that Carter's sales staff did not disclose certain customer arrangements and provided inaccurate documents and explanations to Carter's finance team. The adjustments will lower Carter's retained earnings for 2004 through 2008 and the first six months of fiscal 2009 by $7.5 million. Carter's, whose brands include its namesake and OshKosh B'gosh, said it has worked to address the problems, which includes getting rid of certain employees. While it has given information to the Securities and Exchange Commission regarding the matter, Carter's said the U.S. Attorney's Office is also looking into it and that the company will continue to cooperate with all inquiries. The company anticipates completing the restatements and reporting its third-quarter results as soon as possible. Separately, Carter's reported that CEO Michael D. Casey would take on the additional role of president, replacing Joseph Pacifico, who left Carter's on Monday. Shares of Carter's added $1.01, or 4 percent, to $26 in afternoon trading. Over the past year, the stock has traded between $13.86 and $29.49.
More from Technology
Nvidia Beats Earnings and Revenue Estimates but Issues Weak Guidance
The GPU maker topped analysts' estimates in the third quarter thanks to demand in its gaming business.
Nvidia's Earnings Beat: One Big Takeaway From the Print
Management expects strong data center revenue, which analysts had highlighted as an area investors were focused on.
Applied Materials Rises in After-Hours Trading on Earnings
Applied Materials gains in after-hours trading following latest financial results.
Jim Cramer: It's Not the Technology That Matters, It's Who's Buying It
Just look at the performance of Roku vs. Cisco and the main customers for a host of other tech companies such as Apple, Nvidia, Texas Instruments and Advanced Micro Systems.