Carter's Revalues Skip Hop, but Its Namesake Brand Powers It Forward
When I initially looked at the third-quarter results Carter's (NYSE: CRI) announced late last week, I raised my eyebrows at the combination of modest revenue growth and a steep decline in profitability. That is, until I realized the GAAP results for the kid's clothing retailer included the impact of an impairment charge triggered by the relative underperformance of its once-promising Skip Hop subsidiary.
Even so, the strength of Carter's namesake brand helped prop up the company as a whole, leading investors to drive shares around 3% higher in the wake of the earnings release.
Image source: Getty Images
Source Fool.com
