Carter’s, Inc., the largest branded marketer in the United States of apparel exclusively for babies and young children, announced that its Board of Directors has approved a $300 million share repurchase authorization and instituted a quarterly dividend as part of the Company’s strategy to return excess capital to shareholders.
“In recent years, our Board of Directors and management team have been exploring strategies to improve the Company’s capital structure and capital allocation disciplines,” said Michael D. Casey, Chairman and Chief Executive Officer. “We have built a very profitable business model which has been generating a considerable amount of cash flow.
“The new share repurchases authorization and initiation of a quarterly dividend reflects our confidence in our growth plans as well as our commitment to return excess capital to our shareholders. In addition to these capital return initiatives, we are planning an unprecedented level of investment in our business this year to support our long-term growth objectives.”
The share repurchases authorization announced permits the Company to repurchase shares of its common stock up to $300 million, inclusive of approximately $38 million remaining under previous authorizations. Such purchases may be made in the open market or in privately negotiated transactions, with the level and timing of activity being at the discretion of the Company's management depending on market conditions, stock price, other investment priorities, and other factors. These share repurchase authorizations have no expiration date.
The Board authorized a quarterly cash dividend of $0.16 per share to be paid June 14, 2013, for shareholders of record at the close of business on May 31, 2013. The quarterly dividend is the first for Carter’s since becoming a public company in 2003. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by Carter’s Board of Directors based on a number of factors, including the Company’s future financial performance and other investment priorities.
In addition to the actions described above, the Company plans to assess other opportunities to improve its capital structure.
About Carter's, Inc.
Carter's, Inc. is the largest branded marketer in the United States 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 leading department stores, national chains, and specialty retailers domestically and internationally.
