US: Former Carter’s exec charged with fraud
A former executive at kids’ clothing maker Carter’s Inc has been charged with fraud and insider trading by the Securities and Exchange Commission (SEC).
Joseph Elles, who was executive director of sales at the time of the allegation, is accused of lying about the company's financial picture between 2004 and March 2009 and selling shares when their price was artificially high.
These discounts – known in the clothing industry as “accommodations” – were intended to help Kohl's defray costs related to inventory clearance and sales promotions, and to allow Kohl's to achieve a desired profit margin on its sales of goods purchased from Carter's.
To conceal his actions from Carter's accounting personnel, Elles persuaded Kohl's to postpone deducting these accommodations from invoice payments until later quarters.
The cost of the discounts was not reflected in Carters' quarterly financial reports, leading the company to overstate its quarterly profit.
The SEC filing also claims Elles made $4.7m between May 2005 and March 2009 by selling Carter’s shares.
Atlanta-based Carter’s makes apparel exclusively for babies and young children under its own Carter's and Osh Kosh brands, as well as private label apparel. In fiscal 2009, the company generated net income of$116m on sales of $1.59bn.
However, it has cooperated fully with the SEC and will not be charged with violating federal securities laws relating to Elles' actions.
VF Corp, the world's largest apparel maker and the company behind brands like Nautica, Vans and The North Face, says it is "very pleased" that price increases in its domestic jeanswear business have s...
The following is a general roundup of US apparel and shoe chains' April 2011 sales results. The list will be updated as new results become available....
Levi Strauss & Co has promoted Anne Rohosy as executive vice president and president of its global Dockers brand, tasking her with all product, marketing and business operations....
Department store operator Kohl's Corporation has raised its full-year earnings forecast after booking a 6% rise in first quarter profit thanks to higher sales and margins and tight control of costs....
- Slow fashion: a fast-growing opportunity?
- Rethink needed as low-cost labour options dwindle
- China's apparel sector ponders sustainability
- US textile and apparel trade and sourcing snapshot
- African apparel sector needs cooperation to thrive
- Tazreen Fashions compensation agreement outlined
- Puma commits to 100% PFC removal
- Long-term partnerships key to Adidas sourcing mode
- Gap unveils management changes as Q3 profit rises
- US trade snapshot shows apparel and footwear shift