OshKosh B'Gosh, Inc. Provides Business Update

OshKosh B'Gosh, Inc. Provides Business Update 


OSHKOSH, Wis., Dec. 10  /PRNewswire-FirstCall/ -- OshKosh B'Gosh, Inc.  today
provided an update on recent business developments as well as net sales and
earnings expectations for fiscal 2003.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20030409/GOSHALOGO )

Toys 'R' Us recently announced its decision to close 146 freestanding Kids 'R'
Us stores on or before January 31, 2004.  Currently, OshKosh sells into all of
the 146 Kids 'R' Us locations that will be closing, which the Company expects
will amount to approximately $12 million of net sales for 2003.

Douglas W. Hyde, Chairman, President and Chief Executive Officer, said, "The
decision by Toys 'R' Us to exit its freestanding kids apparel stores highlights
the challenges of doing business in the children's apparel market today. Despite
the closure of the Kids 'R' Us stores, we will continue to sell into Babies 'R'
Us, where we are currently experiencing solid sell-through."

As a result of significant order cancellations from Kids 'R' Us along with the
challenges impacting the Company's overall wholesale business, the Company
currently anticipates it will incur an approximate $3.5 million pre-tax
inventory related charge in the fourth quarter of 2003. Additionally, the
Company will be eliminating approximately 50 positions throughout the Company
including 14 at its headquarters in Oshkosh, Wisconsin. In conjunction with this
headcount reduction, along with the recently announced closing of the Company's
Albany, Kentucky facility and downsizing of its Celina, Tennessee facility, the
Company will incur a charge of approximately $1.0 million in the fourth quarter
of 2003 for severance and other related costs. After the effect of these
charges, the Company now projects diluted earnings per share for fiscal 2003 to
be in the range of $0.58 to $0.64.

Mr. Hyde continued, "Unfortunately, the staff reductions announced today are
necessary to remain competitive and position us for a strong future. We remain
on schedule with our key strategic initiatives -- our Genuine Kids from OshKosh
license arrangement with Target stores and our family lifestyle store concept.
With a successful execution of these initiatives, along with stabilization of
our core wholesale and outlet retail businesses, we are optimistic that we can
return the Company to higher levels of profitability."

OshKosh B'Gosh, Inc. is best known as a premier marketer of quality children's
apparel and accessories, available in over 50 countries around the world. The
Company is headquartered in Oshkosh, Wisconsin.

Statements contained herein that relate to the Company's future performance
including, without limitation, statements with respect to the Company's
anticipated financial position, results of operations or level of business for
2003 or any other future period are "forward-looking statements" within the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such
statements, which are generally indicated by words or phrases such as "plan,"
"estimate," "project," "anticipate," "the Company believes," "management
expects," "currently anticipates," "intends," and similar phrases are based on
current expectations only and are subject to certain risks, uncertainties and
assumptions. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, projected, or estimated.

Among the factors that could cause actual results to materially differ include
the level of consumer spending for apparel, particularly in the children's wear
segment, the impact of deflation on children's wear apparel prices; risks
associated with competition in the marketplace, including the financial
condition of and consolidations, restructurings and other ownership changes in,
the apparel and related products industry and the retail industry, the
introduction of new products or pricing changes by the Company's competitors,
and the Company's ability to remain competitive with respect to product service
and value; risks associated with the Company's dependence on sales to a limited
number of large department and specialty store customers, including risks
related to customer requirements for vendor margin support, as well as risks
related to extending credit to large customers; risks associated with possible
deterioration in the strength of the retail industry, including, but not limited
to, business conditions and the economy, natural disasters, and the
unanticipated loss of a major customer; risks related to the failure of Company
suppliers to timely deliver needed raw materials, risks associated with
importing its products using a global transportation matrix and the Company's
ability to correctly balance the level of its commitments with actual orders;
risks associated with terrorist activities as well as risks associated with
foreign operations; risks related to the Company's ability to defend and protect
its trademarks and other proprietary rights and other risks related to managing
intellectual property issues. In addition, the inability to ship Company
products within agreed time frames due to unanticipated manufacturing,
distribution system or freight carrier delays or the failure of Company
contractors to deliver products within scheduled timeframes are risk factors in
ongoing business. As a part of the Company's product sourcing strategy, it
routinely contracts for apparel products produced by contractors in Asia, Mexico
and Central America. If financial, political or other related difficulties were
to adversely impact the Company's contractors in these regions, it could disrupt
the supply of product contracted for by the Company.

The forward-looking statements included herein are only made as of the date of
this press release. The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise. 

http://www.newscom.com/cgi-bin/prnh/20030409/GOSHALOGODATASOURCE: OshKosh
B'Gosh, Inc.



CONTACT:  David L. Omachinski, Executive Vice President, Chief Operating

Officer, Chief Financial Officer, of OshKosh B'Gosh, Inc., [phone]; or

Investor Relations - Cara O'Brien or Melissa Myron, both of Financial

Dynamics, [phone], for OshKosh B'Gosh, Inc.



Web site:  http://www.oshkoshbgosh.com/ 

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