Kid Brands, Inc. Revises Earnings Guidance for the Year Ended December 31, 2011
February 21, 2012 at 06:02 pm EST
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Kid Brands, Inc. revised earnings guidance for the year ended December 31, 2011. The company now anticipates that its net sales results for the full year will be slightly below previously-issued guidance for a year-over-year decline of 7% to 8%, and its non-GAAP adjusted net income per diluted share for the full year 2011 will be significantly below previously-issued guidance of approximately $0.40 per diluted share. The company's updated outlook for its 2011 results primarily from: (i) additional customer allowances intended to liquidate inventory at both the retail and wholesale level; (ii) higher than anticipated product costs as a percentage of net sales, resulting primarily from increased close-out sales, and increased sales of licensed products; (iii) lower than anticipated net sales due in part to an increase in returns accepted for discontinued items; and (iv) increased inventory reserves for slow-moving products. As new product introductions are not expected to be rolled out until late spring of 2012, sales and profitability are expected to remain soft in the first half of 2012.
Kid Brands, Inc. (Kid Brands) is engaged in the design, development and distribution of infant and juvenile consumer products. The Company operates in one segment: the infant and juvenile business. The Company, through its wholly owned operating subsidiaries: Kids Line, LLC (Kids Line); LaJobi, Inc. (LaJobi); Sassy, Inc. (Sassy), and CoCaLo, Inc. (CoCaLo), designs and markets products in a number of categories including, infant bedding and related nursery accessories and decor, nursery appliances, diaper bags, and bath/spa products (Kids Line and CoCaLo); nursery furniture and related products (LaJobi); and developmental toys and feeding products, and bath and baby care items with features that address the various stages of an infantâs early years, including the Kokopax line of baby gear products (Sassy).