OshKosh B’Gosh Inc. (Oshkosh, Wis.) has reported a 6.3 percent increase in net sales for its first quarter of 2005 ending April 2, 2005.
The company said the increase was driven primarily by a 7.8 percent same-store sales increase at the company’s outlet locations. Retail net sales were up 10.7 percent. while wholesale net sales dropped 0.3 percent.
During the quarter, the company closed five outlet stores and ended the quarter with 170 total retail locations.
“The positive trends we experienced at the end of 2004 continued during the first quarter and helped us meet our top line growth target,” said chairman and ceo Douglas Hyde. “In our outlet stores, we again improved sell-through and increased our average unit selling price, thereby driving solid comparable store sales. We successfully merchandised our retail locations with more compelling assortments and our customers continue to respond positively to our elevated product offering. Product sell-through with our key wholesale customers also continued its positive trend. In addition, we are very satisfied with the progress of our ‘Genuine Kids from OshKosh’ sub-brand at Target and look forward to further building this strong partnership throughout 2005.”
The children’s apparel manufacturer said it has made a strategic decision to eliminate one of three wholesale deliveries that typically occurs in the second quarter. The company determined this particular shipment, which falls at a highly promotional time in the retail calendar, was not contributing to growth in long term brand equity. As such, the Company currently anticipates its second quarter diluted earnings per share will be at or slightly below the prior year’s result. This operating target assumes a moderate improvement in the outlet business that will be offset by lower wholesale sales resulting from the aforementioned discontinued shipment.