After a boost in net income for the fourth quarter, OskKosh B’Gosh has decided to stop selling clothing for adults.
Douglas W. Hyde, Chairman and CEO, said, “We are very pleased with our financial results for the fourth quarter, a period in which we generated year-over-year improvements in almost every aspect of our business, including our top line, gross margin and net income. Over the course of the year we achieved our objectives to stabilize our core wholesale and outlet store businesses and further revitalize the OshKosh B’Gosh brand. Additionally, our updated product offering was well received by consumers resulting in higher unit average selling prices and improved sell-through, particularly in our outlet stores.”
After closely reviewing the results of the Company’s adult apparel offering as well as conducting numerous market studies, the Company has decided to revise its lifestyle store concept to include only children’s apparel and accessories. Previously, the Company positioned its retail concept as a family lifestyle store where consumers could shop for adult and children’s apparel and home accessories.
By Fall 2005 the Company’s 15 existing family lifestyle stores will be converted to offer exclusively children’s apparel and accessories. The Company anticipates that any related markdowns and costs will not significantly impact margins due to the limited number of current lifestyle stores. The Company will refine the children’s only format in its existing lifestyle stores before entering into new markets. As such, the previously planned Mall of America location will be the only lifestyle store to open in calendar 2005.
Mr. Hyde continued, “While we are revising the lifestyle store concept to target only children, our fundamental strategy and plans for long-term future growth of our retail concept are still intact. Over time, we found that our sales and margins have been significantly stronger in our children’s department, and we are confident that in shifting our focus exclusively to kids, we will be able to grow the lifestyle store concept successfully. We see the children’s lifestyle store as a viable channel for future growth and will ensure its success by leveraging our core values and rich heritage in the children’s business.”
“While our lifestyle store concept will be growing slower than we initially planned, we are encouraged by the significant improvement in our results for the year. We are pleased with our progress in our core business and are excited about the prospects of our children’s only lifestyle store concept. Finally, we are optimistic that the ongoing momentum in our business will result in a productive and profitable year in 2005.” Mr. Hyde concluded.
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