Carter's shares fall on delay in reporting 3Q

Carter's shares tumble after company delays reporting 3Q results due to accounting review

• On 12:22 pm EDT, Tuesday October 27, 2009

NEW YORK (AP) -- Carter's Inc. was the biggest percentage decliner on the New York Stock Exchange Tuesday afternoon, after the children's clothing maker delayed reporting its third-quarter results while it reviews its accounting regarding wholesale customers.

Carter's shares dropped $7.20, or 25.3 percent, to $21.24. The stock has ranged from $13.86 to $29.49 over the past year.

Carter's announced the delay just before the market opened Tuesday. The company had been set to release its results after market close. Carter's said it would likely report third-quarter results by Nov. 12.

"The company is delaying its earnings release in order to complete a review of its accounting for margin support to its wholesale customers," the Atlanta company said in a release. "A matter arose late in the company's preparation for its scheduled earnings release, and more time is required to fully evaluate this matter."

A message left with the company was not immediately returned.

Carter's sells OshKosh B'Gosh and Carter's apparel itself and through other vendors, such as Sears, Walmart and Target.

Earlier this year, the company had said it expected a stronger second half of 2009.